First-tier Tribunal Sets Rent for Assured Tenancy Based on Market Value

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00MS/MNR/2023/0051

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 [ADDRESS], [POSTCODE]

[NAME] Mrs [RESPONDENT] Mr [RESPONDENT]

Landlord [NAME] 56 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT] & Ms [APPELLANT]

1. The rent is: £ 895.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 16 April 2023

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

4. Date assured tenancy commenced 16 December 2011

5. Length of the term or rental period Monthly periodic

6. Allocation of liability for repairs In accordance with agreement

7. Furniture provided by landlord or superior landlord None

8. Description of premises A converted second floor flat forming part of a three storey Grade II Listed Building located in a commercial area with two bedrooms, living room, kitchen, bathroom, gas central heating.

[NAME] of Decision 30 May 2023

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CHI/00MS/MNR/2023/0051 Property : [ADDRESS] [POSTCODE] Applicant : [redacted] Representative : None Respondent : [redacted] : [NAME] of [NAME] : Section 13(4) Housing Act 1988 Tribunal members : Mr [NAME] Mr [NAME] Mrs [NAME] : Paper determination Date of decision : 30th May 2023

DECISION

2 Decision of the tribunal (1) The Tribunal determines that the rent that the property in its current condition as at the 16th April 2023 might reasonably be expected to achieve in the open market under an assured tenancy is £895 per month Background 1. The tenants have lived in the property as assured periodic tenants since 16th December 2011 with an agreement of that date. At that time the converted flat was considered to be in good condition.

2. On the 23rd February 2023 the landlord’s agent Leaders served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £820 to £895 per month, being an increase of £75 effective from 16th April 2023.

3. By an [NAME] dated 13th March 2023, the tenant referred that notice to the Tribunal for a determination of the market rent. The Tribunal issued Directions for the conduct of the matter on 11th April 2023.

4. The Tribunal considered the matter suitable for a determination on the papers and therefore a hearing was not necessary. The parties did not disagree with this arrangement. The Evidence 5. The tenant has prepared a helpful bundle of evidence which extends to which includes a background to the case, the [NAME], the directions, the tenancy agreement, completed rent appeal statement. Unfortunately, what we do not have is any comparable evidence or photographs of the premises, more about this is stated below. The tenants evidence did include several photographs of the communal bins and the associated buildup of rubbish which is the responsibility of the landlord and subsequent complaints to the Local Authority. Otherwise, for reasons unknown to the Tribunal, landlord has not engaged in these proceedings. Inspection 6. The Tribunal did not inspect the property and relied on the information provided by the parties, Rightmove, [ADDRESS] and its expert knowledge. The property is a converted second floor flat which forms part of a three storey Grade II Listed Building built in 1833 with brick and stone elevations under a mansard tiled roof. The property is located on the corner of [ADDRESS] in a commercial environment.

3 7. The accommodation comprises two bedrooms, living room, kitchen and bathroom. There is double glazing and central heating. The property has an EPC Rating of C78 and is stated to be 64m2 as opposed to the floor area of 54m2 as stated by the tenants. The Law 8.. The rules governing a determination are set out in section 14 of the Housing Act 1988. In particular, the Tribunal is to determine the rent at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy. In the absence of any evidence to the contrary, the Tribunal has proceeded on the basis that the landlord is responsible for repairs to the structure, exterior and any installations pursuant to section 11 of the Landlord and Tenant Act 1985 and the tenant for interior decoration.

The valuation 9. Having carefully considered all the evidence the Tribunal considers that the rent that would be achieved in its current condition with reasonably modern kitchen and bathroom fittings, modern services and central heating, white goods (except washing machine) supplied by the landlord would be £895 per month. As previously mentioned the parties have not provided the Tribunal with any comparable evidence. This is a somewhat individual property in terms of type. Therefore, the Tribunal had to make certain assumptions regarding specification, location, floor area, building type, Therefore, in the absence of any comparable evidence the Tribunal have utilized its own professional judgement and experience rather than specific market transactions. In the tenants completed rent appeal statement it is confirmed that “the property is in good condition as a whole, kitchen and bathroom are in good condition” Therefore the Tribunal has made no adjustments for condition. 10 The average rate for rental properties in the Southampton area has gone up every quarter since the end of 2019, according to the online property portal [NAME]. The rent increases are due to not enough properties coming to the market to meet demand and the number of homes for rent is 46 per cent below 2019 levels. This puts this decision in context with the current rental market.

11. The Tribunal has been provided with a copy of the tenancy agreement, which incorporates the usual repair obligations.

4 12. The Tribunal received no evidence of hardship and, therefore, the rent determined by the tribunal is to take effect from 16th April 2023.

[NAME] 30th May 2023

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 a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] 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 [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).