First-tier Tribunal Sets Rent for Assured Tenancy Considering Market Conditions

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/24UL/MNR/2022/0052

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 47 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

[RESPONDENT] (PRS 1) Address 16/[ADDRESS], Southend-on-sea, Essex, [POSTCODE]

Tenant [NAME] [APPELLANT]

1. The rent is: £ 170.00 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 27 June 2022

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

4. Date assured tenancy commenced 01 September 2003

5. Length of the term or rental period Weekly

6. Allocation of liability for repairs As per section 11 of the [RESPONDENT] & Tenant Act 1985

7. Furniture provided by [RESPONDENT] or superior [RESPONDENT]

8. Description of premises 2 bedroom terrace house.

[NAME] of Decision 1 August 2022

1

Case Reference

: CHI/24UL/MNR/2022/0052

Property : 47 [ADDRESS] [POSTCODE]

Applicant: [redacted]

(Tenant)

Respondent: [redacted] : Received 10th May 2022

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

Tribunal

: [NAME] [NAME] [NAME]

: 1st August 2022

_____________________________________________

REASONS FOR DECISION ____________________________________

© CROWN COPYRIGHT 2022

2 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

Background 1. The Tribunal gave formal notice of its decision by a Notice dated 1st August 2022 will be £170.00 per week (pw) (£736.67 pcm) with effect from 27th June 2022.

2. By an application received on the 10th May 2022, the Tenants of the above property referred a notice of increase in rent served by the [RESPONDENT] under section 13 of the Housing Act 1988 to the Tribunal.

3. The [RESPONDENT]'s notice dated the 4th May 2022 proposed a rent of £173.00 pw (£750.00 pcm) with effect from 27th June 2022, in place of the current rent of £149.00 pw (£645.00 pcm).

4. The tenancy is an assured shorthold tenancy. No tenancy agreement has been provided nor any date on which it commenced. The tenancy is subject to the [RESPONDENT]'s repairing obligations defined in Section 11 the [RESPONDENT] and Tenant Act 1985.

Property and Inspection 5. Following the Directions dated 27th June 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 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 to the west of Aldershot town centre.

8. The property comprises a terrace house with electric heating and 2 double glazed windows (out of total of 8).

9. The accommodation comprises: 2 Living Rooms, kitchen, bathroom, 2 bedrooms. Outside: Front and rear gardens.

10. The property is let unfurnished.

11. The Tribunal assumed that all mains services are connected.

Documents supplied to and considered by the Tribunal

12. Tribunal Directions dated 27th June 2022.

13. [RESPONDENT]: No submissions.

14. Tenant: Application and Reply Forms. Notice of Increase.

[RESPONDENT]'s Representations (summarised):

3

15. The [RESPONDENT] made no submissions.

Tenant's Representations (summarised)

16. The Tenant says in the Application and Reply Forms:

a) Repairs carried out by the [RESPONDENT] circa 2020 included: New back door, double glazed windows in rear bedroom and bathroom. b) Disrepair includes: Front steps, path and wall. Plaster repairs needed in back bedroom and bathroom

17. No submissions are made as to rental value.

The Tribunal’s Deliberations 18. The Tribunal found as a matter of fact that the notice was a Notice under section 13 as prescribed by Statute.

19. 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 [RESPONDENT] under an Assured Tenancy. The personal circumstances of the Tenant or [RESPONDENT] are not relevant to this issue.

20. The Tribunal checked the [NAME] and noted that the subject property has a certificate registering the property at E expiring on 2nd May 2028. The legal minimum standard for letting a property is rating E.

21. 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.

22. The Tribunal, acting as an expert tribunal, determined what rent the [RESPONDENT] 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 modern central heating, modern bathroom and kitchen facilities, floor coverings, cooker, washing machine and an EPC Rating of E or above would be £270.00 per week (£1,170.00 pcm).

23. The Tribunal, after careful consideration of the current market conditions and the apparent condition (as submitted by the parties) of the subject property determined to make deductions in respect of the disrepair issues identified:

a) General disrepair and lack of modernisation: £60.00 pw (£260.00 pcm). b) Lack of floor coverings and white goods: £40.00 pw (£173.33 pcm).

Total deduction £100.00 pw (£433.33 pcm).

4

24. Accordingly, the Tribunal determined that the market rent for the subject property is £170.00 pw (£736.67 pcm).

25. The rent will take effect from 27th June 2022 being the date specified by the [RESPONDENT] in the notice of increase.

Relevant Law 26. Sections 13 and 14 of the Housing Act 1988.

27. 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.