First-tier Tribunal Sets Rent at £1680 per Month

OUTCOME: Allowed in Part

MR22 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00AY/MNR/2023/0247

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 38 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord J [RESPONDENT], [ADDRESS], Chandler's Ford, Eastleigh, [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 1680.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1st May 2023

*3. The amount included for services is/is

negligible/not applicable 0.00 Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 21/03/2020

6. Length of the term or rental period Periodic

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A ground floor purpose built flat forming part of a two-storey mid terrace building. Accommodation comprises 4 rooms, kitchen, bathroom/wc, share of rear garden

[NAME] of Decision 24TH November 2023

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Case Reference

: LON/OOAY/MNR/2023/0247

Property : 38 [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [APPELLANT] M [COUNSEL] as Trustees for [COMPANY] : [COUNSEL] [NAME] of Objection : 23 April 2023

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

Tribunal

: Mr [NAME] [NAME] of Summary Reasons

: 24 November 2023

_______________________________________________

DECISION

The Tribunal determines a rent of £1680 per calendar month with effect from 1 May 2023. ___________________________________

© CROWN COPYRIGHT 2023 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background 1. On the 24 March 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,700 per month in place of the existing rent of £900 per month to take effect from 1 May 2023. The existing rent had been agreed by negotiation between the parties in March 2022, following the tenant’s succession to an assured periodic tenancy on the death of his mother in March 2020.

2. On the 23 April 2023 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.

Inspection

3. The Tribunal inspected the property on the 24 November 2023 in the presence of the Tenant and Mr [APPELLANT] on behalf of the Landlord.

Evidence

4. The Tribunal has had consideration to the inspection and the written submissions provided by the Tenant and the Landlord.

Determination and Valuation

5. Having consideration of our own expert general knowledge of rental values in the Balham area, we consider that the open market rent for the property if it were in good marketable condition with reasonably modern kitchen and bathroom, double glazing, modern services, carpets and curtains and white goods supplied by the landlord would be £2,800 per month. Using our own expertise, we considered that deductions of 40% should applied to take into account the terms of the tenancy, and the actual current condition of the property as seen on inspection. This provides a deduction of £1,120 per month from the hypothetical rent. This reduces the figure to £1,680 per month.

It should be noted that this figure cannot be a simple arithmetical calculation and is not based upon capital costs but is the tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

6. The Tribunal determines a rent of £1,680 per calendar month.

Decision

7. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a

3 willing Landlord under an assured tenancy in its current condition was £1,680 per calendar month.

8.The Tribunal directs the new rent of £1,680 to take effect on the 1 May 2023. This, being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship.

Chairman: [NAME]: 24 November 2023

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 subsequent application for permission to appeal should be made on Form RP PTA.