First-tier Tribunal Sets Rent Based on Market Conditions

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CAM/00MC/MNR/2024/0024 Property : 91 [ADDRESS] [POSTCODE] Applicant : [redacted] Representative : None Respondent : [redacted] (Landlord) Representative : None Type of Application : S.13 Housing Act 1988 Determination of a new rent Tribunal Members : Mr [NAME]. [NAME] and venue of Meeting : 25 March 2024 First Tier Tribunal (Eastern) HMCTS Cambridge [POSTCODE] Date of Decision : 25 March 2024

REASONS FOR DECISION

Background

1 The First Tier Tribunal received an application dated 31 January 2024 from a tenant of the Property, regarding a notice of increase of rent served by the landlord, under S.13 of the Housing Act 1988 (the Act).

2 The notice, dated 23 January 2024, proposed a new rent of £1250 per calendar month exclusive, with effect from and including 27 February 2024. This rent does not include other services.

2 3 The tenancy is an assured periodic monthly tenancy with effect from and including 27 May 2016. A copy was provided.

4 The rent payable from 27 May 2016 up to and including 26 February 2024 was £975 per calendar month. It was said to have remained unchanged for some 8 years. No services were included.

Directions

5 Directions, dated 1 February 2024, for the progression of the case, were issued by Legal [NAME]. Neither party asked for a hearing.

Inspection

6 There was no inspection. However from Google Streetview (@ April 2021) the Tribunal could see the front elevation. It appeared that the house is a conventional 1890’s end terraced house in a street consisting of long terraces of very similar two storey houses. Most likely whilst originally constructed with 3 bedrooms, the third bedroom has been converted into a bathroom/ WC, in the conventional two storey back addition though its exact location in the house was not apparent. There were two reception rooms and kitchen to the ground floor.

7 This two storey traditional house has fair face main brick walls to the front elevation. There is a main double pitched roof finished in slate tiles. It is likely that the back addition is a mono pitch arrangement finished in the same way. There was a rear garden not visible to the Tribunal but, also a small walled front yard beyond the pavement edge.

8 Front elevation windows and door were double glazed set in apparently plastic frames. It was confirmed that space and water heating was by gas fired central heating boiler. The house apparently contained white goods, carpets and some curtains/ blinds.

9 Externally the Property appeared to be in a fair to good condition. It’s located in an established residential neighbourhood of very similar small 2 and 3 bedroom houses from the Victorian era. There is no off street parking and on street parking is principally for residents.

[NAME]

10 The tenants provided written submissions via the standard Application Form only. The landlord made more detailed representations through the standard Reply Form. The landlord also included details of other comparable houses said to be available to let nearby, as well as written advice from local letting agents on rents achievable. The comparables properties to let sought rents from £1250 to £1500 pcm, ranging from mid 2023 to early 2024. The Tribunal is grateful for such information as provided.

3

Law

11 In accordance with the terms of S14 of the Act we are required to determine the rent at which we consider the property might reasonably be expected to let in the open market, by a willing landlord, under an assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any decrease in value due to the tenant’s failure to comply with any terms of the tenancy. Thus the Property falls to be valued as it stands; but assuming that the Property to be in a reasonable internal decorative condition.

Decision

12 From the Tribunal’s own general knowledge of market rent levels in Reading it determines that the subject property would let on normal Assured Shorthold Tenancy (AST) terms, for £1250 per calendar month, fully fitted and in good order.

13 From the representations there were no specific adjustments to be made to this figure. This leaves an unadjusted rent of £1250 pcm. It is payable with effect from and including 27 February 2024. Although the landlord is not obliged to charge this new rent, they may not charge more.

[NAME] 25 March 2024

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have.

If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision.

Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013).

If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such

4 reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit.

The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e., give the date, the property, and the case number), state the grounds of appeal and state the result the party making the application is seeking.

If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).