First-tier Tribunal Sets New Market Rent for Property

OUTCOME: Allowed

LON/00AY/MNR/2024/0700

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 63a [ADDRESS], [POSTCODE]

Mr [RESPONDENT] Mr [RESPONDENT]

Landlord [RESPONDENT] 63b [ADDRESS], [POSTCODE]

Tenant [NAME]

1. The rent is: £ 1,071.94 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 2 November 2024

3. The amount included for services is

£85.95 Per Month

4. Date assured tenancy commenced 14 September 2014

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord Bed, white goods, tables & chairs, kitchen accessories.

8. Description of premises Large room and smaller side room on lower ground floor of larger period building with separate bathroom accessed via shared hallway, and kitchenette located in shared hallway.

Chairman Mr O Dowty MRICS Date of Decision 30 January 2025

Case Reference

: LON/00AY/MNR/2024/0700

Property : 63a [ADDRESS], [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : Mr [RESPONDENT] of Application : 28 October 2024

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

Tribunal

: Mr [NAME]

Mr [NAME] of Summary Reasons

: 31 January 2025

_______________________________________________

DECISION

The Tribunal determines a rent of £1,071.94 per calendar month (exclusive of Council Tax) with effect from 2 November 2024. ____________________________________ © CROWN COPYRIGHT 2025

SUMMARY REASONS FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Background 1. On 27 September 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,395 per month in place of the existing rent of £1,045 to take effect from 2 November 2024.

2. On 28 October 2024 under Section 13(4)(a) of the Housing Act 1988, the Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent. The Tenant’s referral was received by the Tribunal on the same day.

Inspection 3. The Tribunal has carried out an inspection of the property on 30 January 2025.

Evidence 4. The Tribunal has consideration of the written submissions provided by the Tenant and the Landlord.

Determination and Valuation 5. Having consideration of the evidence provided by the parties and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in good tenantable condition, including all of the bills paid, would be in the region of £1,300 per calendar month. From this level of rent we have made adjustments in relation to:

• The condition of the property and the tiled flooring of the main rooms • The basic nature of the kitchenette and bathroom fixtures and fittings • The removal of Council Tax from the rent (as we are required to determine a rent exclusive of Council Tax)

6. The full valuation is shown below:

Hypothetical Market Rent

£1,300 Per Month LESS 10% Condition, tiled flooring

-£130 LESS 5% basic bathroom and kitchen

-£65 Total

£1,105 SAY

£1,100 Per Month

LESS Council Tax

-£28.06

Rent excluding Council Tax

£1,071.94 Per Month

7. The Tribunal arrives at a rent of £1,100 including Council Tax. or £1,071.94 exclusive of Council Tax

Decision 8. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let, inclusive of the bills paid as part of the tenancy by the landlord other than Council Tax, in the open market by a willing Landlord under an assured tenancy was £1,071.94 per calendar month.

9. The Tribunal directs the new rent of £1,071.94 per month to take effect on 2 November 2024; this being the date as set out in the Landlord’s Notice of Increase.

10. We note for clarity that we have arrived at a rental figure which excludes Council Tax – as we are required to do by Section 14(5) of the Housing Act 1988. The total figure including those charges would, according to the figures provided by the landlord, presently be £1,100 per calendar month.

Chairman: Mr O Dowty MRICS

Date: 31 January 2025

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA.