First-tier Tribunal Sets Rent for Assured Periodic Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – [NAME] No. BIR/41UF/MNR/2023/0068

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 141 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord [RESPONDENT] [ADDRESS], Birmingham, West Midlands, [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £110.00 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 3 April 2023

3. The amount included for services is £6.42 Per Week

4. Service charges are variable and are not included

5. Date assured tenancy commenced 12 September 20211 6. Length of the term or rental period weekly

7. Allocation of liability for repairs s.11 8. Furniture provided by landlord or superior landlord none 9. Description of premises First floor one bedroom self contained flat.

[NAME] of Decision 12 September 2023

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Case Reference : BIR/41UF/MNR/2023/0068

Property

: 141 [ADDRESS], [POSTCODE]

Applicant: [redacted]

Respondent: [redacted] : Appeal against a Notice proposing a new rent under an

Assured Periodic Tenancy under section 13(4) of the Housing

Act 1988

Tribunal Members : Mr [NAME].[NAME]. [NAME] B.Sc.(Est.Man.) FRICS

Mr [NAME]. [NAME] and Venue of : None. Determined on paper. Hearing

Date of Decision : 12 September 2023

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REASONS FOR DECISION

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL [NAME] (RESIDENTIAL PROPERTY)

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1 The rent is determined at £110 (One Hundred and Ten Pounds) per week from 3 April 2023.

REASONS

Introduction

2 The Applicant hold an Assured monthly tenancy that commenced 12 September 2011.

3 On 24 February 2023 the Respondent served notice of increase under section 13(2) of The Housing Act 1988 ('the Act') requesting a new rent of £97.36 per week including £6.42 per week service charge, in place of the previous rent of £90.31 per week including £5.32 per week service charge, to take effect on 3 April 2023.

4 On 22 March 2023 the Applicant applied for the rent to be determined by the First-tier Tribunal ([NAME]).

5 On 12 September 2023 the Tribunal determined the rent at £110.00 per week with effect from 3 April 2023.

6 On 18 September 2023 the Applicant requested reasons for the Tribunal’s decision.

The Law

7 Section 14 of The Housing Act 1988 states:

'(1) Where, under subsection (4)(a) of section 13 above, a tenant refers to a rent assessment committee a notice under subsection (2) of that section, the committee shall determine the rent at which, subject to subsections (2) and (4) below, the committee consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy -

(a) which is a periodic tenancy having the same periods as those of the tenancy to

which the notice relates;

(b) which begins at the beginning of the new period specified in the notice;

(c) the terms of which (other than relating to the amount of the rent) are the same as

those of the tenancy to which the notice relates;...'

'(2) In making a determination under this section, there shall be disregarded -

(a) any effect on the rent attributable to the granting of a tenancy to a sitting tenant;

(b) any increase in the value of the dwelling-house attributable to a relevant

improvement carried out by a person who at the time it was carried out was the

tenant, if the improvement-

(i) was carried out otherwise than in pursuance of an obligation to the

immediate landlord ...

8 The jurisdiction of the Rent Assessment Committee was transferred to the First-tier Tribunal ([NAME]) on 1 July 2013.

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Facts Found

9 The Tribunal issued Directions on 10 May 2023 inviting the parties to make any submissions they wished to make regarding the market rental value of the property with a timetable for action.

10 The Tribunal inspected the property on 12 September 2023 in the presence of the Applicant. The Respondent was unrepresented.

11 The property comprises a self-contained first floor flat in a modern purpose built, two storey house. It is in a convenient position about 1 mile from Wolverhampton city centre within easy reach of local facilities.

12 The property is part of a small modern housing development in a residential area.

13 The flat has a ground floor entrance lobby with stairs to the first floor with Landing, Living Room, Bedroom, Kitchen, Bathroom and Airing Cupboard. Space heating is provided by electric night storage heaters. The flat was let unfurnished and it is understood the Applicant Tenant provided the white goods. There is a communal parking area outside.

Submissions

Neither party requested a hearing.

14 The Applicant

The Applicant sent a copy of the Tenancy Agreement to the Tribunal but made no other Submissions and did not provide any comparable evidence.

15 The Respondent

The Respondent Landlord sent a letter to the Tribunal, copied to the Tenant, dated 15 May 2023, explaining that the rent had been increased in line with the Government's Policy Statement on Rent for Social Housing which limited any increase to 7% above the previous year's rent. The previous rent had been £90.94 including service charge of £5.32 and 7% increase made this £97.36 per week. No evidence was provided of the rents of comparable flats available to let or recently let in the local market.

Decision

16 In the absence of any comparable evidence from the parties, the Tribunal relied on its own experience of market rents in assessing the level that might be achieved if it were offered to let on the statutory basis with vacant possession, in other words, a market rent. In doing so, it considered the accommodation comprised in the tenancy which is well designed and in good repair, the benefits of the location and demand for flats in the area.

17 Having considered all relevant points, the Tribunal found the rent in accordance with the Act to be £110.00 per week including service charge of £6.42 per week.

18 The Tribunal acknowledges that this is more than the Respondent Landlord requested but the Tribunal's duty is to assess the rent on the statutory basis and is aware of the limit on increases imposed by the national Policy Statement which is specific to social housing landlords such as [RESPONDENT].

[NAME] B.Sc.(Est.Man.) FRICS

Chairman

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Appeal

If either party is dissatisfied with this decision an application may be made to this Tribunal for permission to appeal to the Upper Tribunal, [NAME] (Residential Property) on a point of law only. Any such application must be received within 28 days after the decision and accompanying reasons have been sent to the parties (Rule 52 of the Tribunal Procedure (First-tier Tribunal) ([NAME]) Rules 2013).