Market Rent Adjustment Based on Property Condition and Improvements

OUTCOME: Allowed

Case Reference

: LON/00AC/MNR/2023/0334

Property : 16 [ADDRESS], [POSTCODE]

Tenant

: [NAME] [APPELLANT] & [NAME]

Landlord : [RESPONDENT]

: [RESPONDENT] of Objection : 25 July 2023

Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal

: [NAME] [NAME] [NAME] of Summary Reasons

: 11 January 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £2,100 per calendar month with effect from 28th July 2023. ____________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

SUMMARY REASONS

Background 1. On 23 June 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,800 in place of the existing rent of £1,733.33 per month to take effect from 28 July 2023.

2. On 25 July 2023 under Section 13(4)(a) of the Housing Act 1988, the Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

Inspection and hearing 3. A video hearing was held on 11 January at which Mr [NAME] attended and made submissions. Mr [NAME] and Mr [NAME] represented the agents [COMPANY]. Mr [NAME] provided Expert Evidence on the property on behalf of the Respondent landlord.

4. Mr [RESPONDENT] described the defects at the property and provided evidence of the improvements undertaken by him during the tenancy of the property. He did not offer any comparable market rental evidence.

5. Mr [APPELLANT] alleged that over the last 10 months or so the tenant had not permitted access to the dwelling by property maintenance staff. He claimed this was a primary cause of the dilapidation. He also claimed some of the disrepair was the result of damage caused by the tenant during their 16 or so year residency.

6. Mr [APPELLANT] told the Tribunal his report dated 10 January 2024 was compiled following a drive-by inspection of the property and he had no internal access. Mr [NAME] relied upon Mr [NAME] to provide relevant comparable market rental evidence. Three comparable transactions were offered with settlements in the range £3,200 to £2,600 per month. When questioned by Tribunal about the most appropriate comparable to rely upon in undertaking his rental valuation he said the rent achieved for [ADDRESS] in October 2023 at £2,900 per month was the best match for the property. He confirmed that his opinion of rental value for [ADDRESS] at £2,8000 per month was made after taking a wholistic view of the property. He had not made specific and discrete adjustments to reflect any differences in condition, size, location or defects between the comparable transaction properties and the property.

7. The Tribunal carried out an inspection of the property on 11 January after the conclusion of the hearing. The tenant attended the inspection but did not grant permission for attendance by the landlord or their agents.

Evidence

8. The Tribunal has had consideration of the written and oral submissions provided by the Tenant, the Landlord’s agent and Expert in their determination of the rent payable.

Determination and Valuation 9. Having consideration of the comparable evidence proved by the Expert Valuer and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in its current condition would be in the region of £2,900 per calendar month. From this level of rent we have made adjustments to reflect tenant improvements, tenant furniture and floor coverings, any dilapidation and obsolescence at the property.

10. The full valuation is shown below:

Decision 11. The Tribunal therefore determined that the rent at which the subject property in present condition might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy was £2,100 per calendar month.

12. The Tribunal directed the new rent of £2,100 to take effect on 28 July 2023. This being the date as set out in the Landlord’s Notice of Increase.

Chairman: [NAME]: 11 January 2024

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision.

If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA. You can only appeal if the First-tier Tribunal decision was wrong on one or more points of law and you must say why the First-tier Tribunal was wrong in law.

First-tier Tribunal – Property Chamber File Ref No. LON/00AC/MNR/2023/0334

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 16 [ADDRESS], [POSTCODE]

[NAME] [NAME] [RESPONDENT] c/o Agent: [COMPANY], [POSTCODE]

Tenant [NAME] [APPELLANT] & [NAME]

1. The rent is: £

2,100

Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 28th July 2023

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

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 1/10/2006

6. Length of the term or rental period Monthly

7. Allocation of liability for repairs Section 11

8. Furniture provided by landlord or superior landlord None advised

9. Description of premises A semi-detached two storey house with garden to rear and off street parking to front. There is a garage. The property is adjacent to the [ADDRESS] at the rear. The accommodation comprises: entrance hallway, lounge, dining room, kitchen, Wc, three bedrooms, WC and bathroom.

[NAME] of Decision 11 January 2024