First-tier Tribunal Sets Rent at £700.00 for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00LC/MNR/2022/0125

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 89a [ADDRESS], [POSTCODE]

[NAME] Miss [RESPONDENT] Mr [RESPONDENT]

Landlord Mr [RESPONDENT] [NAME] 61 [ADDRESS], [POSTCODE]

[APPELLANT] [NAME]

1. The rent is: £ 700.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 02 November 2022

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

4. Date assured tenancy commenced 02 November 2015

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs As per section 11 of the Landlord & [APPELLANT] 1985

7. Furniture provided by landlord or superior landlord No information provided by the parties.

8. Description of premises 1 bedroom top floor flat in a converted house.

[NAME] of Decision 13 January 2023

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Case Reference

: CHI/00LC/MNR/2022/0125

Property : [ADDRESS] [POSTCODE]

Applicant: [redacted]

Respondent: [redacted] : 25th October 2022

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

Tribunal

: [NAME] [NAME] [NAME]

: 13th January 2023

_____________________________________________

REASONS FOR DECISION ____________________________________

© CROWN COPYRIGHT 2023

2 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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Background 1. The Tribunal gave formal notice of its decision by a Notice dated 13th January 2023 that the rent will be £700.00 per calendar month (pcm) with effect from 2nd November 2022.

2. By an application dated 25th October 2022, the [APPELLANT] 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 30th September 2022 proposed a rent of £750.00 pcm with effect from 2nd November 2022, in place of the current rent of £550.00 pcm.

4. The tenancy is an assured shorthold tenancy. The tenancy agreement is in common form and is dated 2nd November 2015. The tenancy is subject to the Landlord's repairing obligations defined in Section 11 the Landlord and [APPELLANT] 1985.

Property and Inspection 5. Following the Directions dated 7th December 2022 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, by reference to information publicly available on the internet (including the Energy Performance Certificate ‘EPC’) 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 mainly residential area on the north side of Gillingham town centre. Local shops, schools, amenities and public transport services are available in the vicinity.

8. The property comprises a first floor self contained flat in a converted end terrace house 0ccupying a corner site with return frontage to [ADDRESS].

9. The Flat is recorded in the EPC as having: solid brick walls, insulated roof space, double glazing, electric storage heaters and instant hot water at point of use.

10. The accommodation comprises: Living Room, kitchen, bathroom/ w.c, 1 bedroom and attic.

11. No information is provided by the parties as to whether the property is furnished or unfurnished.

12. The Tribunal assumed that all mains services are available.

Documents supplied to and considered by the Tribunal

13. Tribunal Directions.

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14. Neither the Landlord nor the solicitor completed the Reply Form or made submissions other than supplying a copy of the current tenancy agreement.

15. [APPELLANT]: Application, Notice of Increase and the April 2014 Tenancy Agreement. The [APPELLANT] did not complete the Reply Form or make submissions.

The Tribunal’s Deliberations 16. The Tribunal found as a matter of fact that the notice was a Notice under section 13 as prescribed by Statute.

17. 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 [APPELLANT] or Landlord are not relevant to this issue.

18. The Tribunal checked the [NAME] and noted that the subject property has a certificate registering the property at E expiring on 2nd December 2027. The legal minimum standard for letting a property is rating E.

19. 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.

20. 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 a good condition and subject to the terms of such a tenancy that is considered usual for such an open market letting.

21. In the absence of any submissions from either party the Tribunal relied on its 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, kitchen facilities, floor coverings, cooker, washing machine, fridge and an EPC Rating of E or above would be £700.00 pcm.

22. The Tribunal, after careful consideration of the current market conditions, and being presented with no evidence by either party concluded that the rent proposed by the Landlord was in excess of the market rent achievable.

23. Doing the best it can with the limited information contained in the papers submitted by the parties and evidence publicly available, the Tribunal members determined using its professional knowledge and experience that the market rent for the subject property is £700.00 pcm.

24. The rent will take effect from 2nd November 2022 being the date specified by the landlord in the notice of increase.

Relevant Law 25. Sections 13 and 14 of the Housing Act 1988.

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

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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.