First-tier Tribunal Sets New Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00HB/MNR/2020/0013

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

Address of Premises The Tribunal members were 1 [ADDRESS], [POSTCODE]

[NAME] Mrs [RESPONDENT]

Landlord Ms [RESPONDENT] 100 [ADDRESS], [POSTCODE]

Tenant Mrs [APPELLANT]

1. The rent is: £ 213.46 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 27 April 2020

3. The amount included for services is not applicable n/a Per n/a

4. Date assured tenancy commenced 11 February 2003

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord None

8. Description of premises Semi-detached house with 3 bedrooms.

[NAME] of Decision 29 June 2020

© CROWN COPYRIGHT 2020

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00HB/MNR/2020/0013 Property : 1 [ADDRESS] [POSTCODE]

Applicant : [redacted] :

None

Respondent : [redacted] : None

Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal Members :

Mr [NAME] Mrs [NAME] of Inspection : None, decided on the papers.

Date of Decision

:

29th June 2020

DECISION

CHI/00HB/MNR/2020/0013

2 Summary of Decision

1. On 29th June 2020 the Tribunal determined a market rent of £213.46 per week to take effect from 27th April 2020.

Background

2. The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.

3. On 5th February 2020 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £213.25 per week, equating to £924.08 per month, in place of the existing rent of £203.25 per week, £880.75 per month, to take effect from 27th April 2020. The notice complied with the legal requirements.

4. On 4th March 2020 the Tribunal received an application from the Tenant under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal office informed the parties that the Tribunal considered that the rent could be determined based on the papers unless either party objected in writing to the Tribunal by 29th May 2020. No such objection was received. Further directions were issued on 15th May 2020 extending the time limit for the Tenant to reply to 12th June 2020.

6. The parties submitted written representations, copies of which were sent to each other.

Submissions

7. On 29th June 2020 the Tribunal met on-line to consider the submissions made by the parties.

8. The accommodation is described by the Tenant as a semi-detached house comprising a Living Room and three Bedrooms one of which is a box room, the tenancy having commenced on 26th November 2007.

9. The Tenant had provided flooring to the Living Room and Bedrooms. The Landlord is responsible for repairs. The Tenant disputed the amount of the existing rent stating that it had been applied illegally but gave no reasoning to support this claim.

10. The submission from the Landlord confirmed that no furnishings were included and described the property as also having a Bathroom and Kitchen, double glazed windows throughout, gas-fired central heating and private gardens to front and rear.

11. The papers included a letter from Bristol City Council dated 4th January 2019 requiring the Landlord to carry out certain repairs to the property. The Landlord stated that these have substantially been completed.

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12. The Landlord submitted evidence of other three-bedroom properties available to rent at asking rents between £1250 per month and £1550 per month.

13. The Landlord also stated that the works referred to in the letter from Bristol City Council had all been rectified. This was not disputed by the Tenant.

The law

S14 Determination of Rent by First-tier Tribunal

(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy-

(a) which is a periodic tenancy having the same periods as those of the tenancy to which the notice relates; (b) which begins at the beginning of the new period specified in the notice; (c) the terms of which (other than relating to the amount of the rent) are the same as those of the tenancy to which the notice relates; and (d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates.

(2) In making a determination under this section, there shall be disregarded-

(a) any effect on the rent attributable to the granting of a tenancy to a sitting tenant; (b) any increase in the value of the dwelling-house attributable to a relevant improvement carried out by a person who at the time it was carried out was the tenant, if the improvement- (i) was carried out otherwise than in pursuance of an obligation to his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement; and (c) any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy.

CHI/00HB/MNR/2020/0013

4 (3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates, or the following conditions are satisfied, namely-

(a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling-house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of joint tenants, at least one of them) did not quit.

(4) In this section "rent" does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985, but, subject to that, includes any sums payable by the tenant to the landlord on account of the use of furniture, in respect of council tax or for any of the matters referred to in subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation.

Consideration and Valuation

14. The Tribunal is required to determine the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy. The personal circumstances of the Tenant are not relevant to this issue.

15. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Bristol the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £1000 per month.

16. Such a market rent would normally be based on the property being in good order throughout and including furnishings comprising flooring, curtains, and white goods.

17. Using its experience the Tribunal decided that an adjustment of £75 per month should be made to reflect these items as follows;

Tenant’s provision of white goods £10 Tenant’s provision of curtains £20 Tenants provision of floorings £40

____ TOTAL £75

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18. Accordingly the open market rent of £1000 per month would be adjusted to £925 per month equating to £213.46 per week.

19. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship.

Determination

20. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £213.46 per week.

21. The Tribunal directed that the new rent of £213.46 per month should take effect from 27th April 2020 this being the date specified in the original notice.

______________________ Chairman: [NAME]: 29th June 2020

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking