First-tier Tribunal Sets Rent at £195 Per Week

OUTCOME: Allowed

Case Reference : CHI/29UN/MNR/2021/0045

Property : 56 [ADDRESS], [POSTCODE]

Applicant: [redacted]

Respondent: [redacted]

Type of Application : Sections 13 and 14 of the Housing Act 1988

Tribunal : [NAME] [NAME]

[NAME] : 8th July 2021

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REASONS FOR DECISION

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© CROWN COPYRIGHT 2021

Background

1. The Tribunal gave formal notice of its decision by a Notice dated 8th July 2021 in the sum of £195.00per week.

2. By an application dated 6th May 2021, the tenant of the above property referred a notice of increase in rent served by the landlord under section 13 of the Housing Act 1988 to the Tribunal.

3. The landlord's notice dated the 26th April 2021 proposed a rent of £184.11 per week. with effect from 1st June 2021, in place of the current rent of £145.00 per week.

4. The tenancy is an assured shorthold tenancy. No tenancy agreement has been provided to the Tribunal but the tenancy is understood to have commenced in 2002. The tenancy is subject to the Landlord's repairing obligations defined in Section 11 the Landlord and Tenant Act 1985.

Property and Inspection

5. Following the Directions dated 20th May 2021 and the explanation contained therein, the Tribunal did not inspect the premises.

6. Extracting such information as it could from the papers supplied to the Tribunal by the parties (including the previous Tribunal determination), by reference to information publicly available on the internet and with the benefit of its knowledge and experience the Tribunal reached the following conclusions and found as follows:

7. The property is located in a predominantly residential area in close proximity to local shops.

8. The property comprises an end terrace double glazed house with central heating.

9. The accommodation comprises: 2 reception rooms and kitchen, 3 bedrooms, bathroom and w.c. Outside: garden and street parking.

10. Carpets and white goods are included in the Tenancy.

11. The Tribunal is informed that all mains services are connected.

Hearing

12. A hearing was not requested.

Documents supplied to and considered by the Tribunal

13. Tribunal Directions dated 20th May 2021.

14. Landlord: Tribunal Reply Form.

15. Tenant: Application Form, Notice of Increase and Reply Form.

Landlord's Representations (summarised):

16. The Landlord says in the Reply Form:

17. There are private gardens and off street parking.

18. In 2002 before the current letting the property was completely refurbished with new kitchen, bathroom and electrics.

19. External cladding was added in 2015 and all repair requests have been addressed.

20. The tenant has removed internal walls to make the ground floor open plan. The works are unfinished.

21. It is a good sized property. Photographs are provided showing the front elevation.

22. Rental valuations are provided from [NAME] in the sum of £1,200.00 to £1,300.00 pcm (£277.00 - £300.00 per week) and [COMPANY] £1,100.00 to £1,150.00 pcm (£254.00 - £265.00 per week).

Tenant's Representations (summarised)

23. In the Reply Form the tenant states that the boiler was replaced in 2002 and 2015. Kitchen in 2002 due to damage from damp, bath in 2010. Fence panels and posts in 2014/15.

24. Some structural work has been undertaken ready for adaptations from disability grant.

25. Defects noted:

a) Some of the windows are defective and cannot be opened.

b) Some wooden flooring is rotten.

c) There is an ongoing issue with damp penetration.

d) The local council have inspected and reported poor living conditions.

26. Photographs are attached showing:

a) A broken window.

b) Damp patch by a door.

c) Broken fencing.

d) Dropped kerb for pavement crossing.

e) Windows unable to open due to weight on hinges.

27. No representations are made about the level of the rent proposed by the Landlord.

The Tribunal’s Deliberations

28. The Tribunal may proceed to determine the rent at which it considers the subject property might reasonably be expected to let on the open market by a willing landlord under an assured tenancy.

29. The Tribunal found as a matter of fact that the notice was a Notice under section 13 as prescribed by Statute.

30. 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 or Landlord are not relevant to this issue.

31. The Tribunal checked the National Energy Performance Register and noted that the subject property has a certificate registering the property at C expiring on 3rd June 2031. The legal minimum standard for letting a property is rating E.

32. Based on the knowledge of its members the Tribunal finds that the market for this type of property is very sensitive to condition and inventory. The subject property appears to the Tribunal to be in condition that might not immediately appeal to a prospective tenant.

33. The Tribunal, acting as an expert tribunal, determined what rent the landlord could reasonably be expected to obtain for the subject property in the open market if it were let today in the condition and subject to the terms of such a tenancy that is considered usual for such an open market letting. It did this by having regard to the evidence supplied by the parties and the Tribunal’s own general knowledge of market rent levels. Having done so, it concluded that such a likely market rent for a similar modernised property in fair condition with central heating, modern bathroom and kitchen facilities, floor coverings, curtains and an EPC Rating above F would be £250.00 per week.

34. The Tribunal, after careful consideration of the current market conditions and the apparent condition of the subject property,

35. The Tribunal made the following deductions:

a) Lack of curtains £5.00

b) General external disrepair (damp windows, rotten floor) £20.00

c) Internal decorating liability (arising out of the lack of tenancy agreement) £15.00.

d) Proximity to commercial use: £15.00

36. A total deduction of £55.00.

37. Accordingly the Tribunal determined that the market rent for the subject property is £195.00 per week.

38. The rent will take effect from 1st June 2021 being the date specified by the landlord in the notice of increase.

Relevant Law

39. Sections 13 and 14 of the Housing Act 1988.

40. Assured Tenancies and Agricultural Occupancies (Forms) (England) Regulations 2015 (SI 2015 No.620)

RIGHTS OF APPEAL

1. A person wishing to appeal this decision (on a point of law only) 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. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.

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