Market Rent Determination for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HAV/45UF/MNR/2025/0653

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 9 [ADDRESS] [POSTCODE]

[NAME] [NAME] Judge Gethin

Landlord [COMPANY] and [COMPANY] as Trustees for [COMPANY] c/o [NAME], 33 [ADDRESS], [POSTCODE]

Tenant Ms [APPELLANT] [NAME]

1. The rent is: £ 1600.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 24 March 2025

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

4. Date assured tenancy commenced 24 September 2021

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord

8. Description of premises 2 bedroom maisonette within ‘[NAME]’ development

[NAME] of Decision 23 April 2025

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/45UF/MNR/2025/0653 Property : 9 [ADDRESS] [POSTCODE] Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : [COMPANY] and Nominee 2 Limited as Trustees for [COMPANY] : [COUNSEL] of Application :

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

Tribunal Members : [NAME] [NAME] Judge Gethin Date of Application : 21st March 2025 Date of Decision :

23rd April 2025

DECISION

The Tribunal determines a rent of £1,600 per calendar month with effect from 24th March 2025.

HAV/45UF/MNR/2025/0653

SUMMARY REASONS

Background 1. On 18th February 2025 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,600 per month in place of the existing rent of £1,300 per month to take effect from 24th March 2025.

2. On 21st March 2025 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 3. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet. Evidence

4. The Tribunal has considered the written submissions provided by the Tenant and the Landlord. Determination and Valuation 5. Having given consideration to the comparable evidence provided by the parties and of its own expert, general knowledge of rental values in the area, the Tribunal determines that the open market rent for the property in good tenantable condition would be £1,600 per calendar month.

6. The Tribunal noted that the previous rent of £1,300 per month was from 24th September 2021 and the number of communal facilities provided within the rent including a Clubhouse, [ADDRESS], Gym and onsite Management Team.

7. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £1,600 per month.

8. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship.

9.

Accordingly, the Tribunal directed that the new rent of £1,600 per month should take effect from 24th March 2025, this being the date specified in the notice.

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

HAV/45UF/MNR/2025/0653

the full reasons. Any request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/45UF/MNR/2025/0653 Property : 9 [ADDRESS] [POSTCODE] Applicant Tenant : Ms [COUNSEL] : None Respondent Landlord :

[COMPANY] and Nominee 2 Limited as Trustees for [COMPANY] : [NAME] of Application :

Tribunal Members : [NAME] [NAME] Judge Gethin

Date of Application : 21st March 2025

Date of Decision

:

23rd April 2025

DECISION

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Summary of Decision

1. On 23rd April 2025 the Tribunal determined a market rent of £1,600 per month to take effect from 24th March 2025.

Background 2. The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.

3. On 18th February 2025 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,600 per month, in place of the existing rent of £1,300 per month, to take effect from 24th March 2025. The notice complied with the legal requirements.

4. On 21st March 2025 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. On 28th March 2025 the Tribunal issued Directions informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos.

7. Both Parties submitted papers setting out their case which had been copied to the [NAME].

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 23rd April 2025 based on the written representations received.

9. These reasons address the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application. The Law

S14 Determination of Rent by First-tier Tribunal

(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the

HAV/45UF/MNR/2025/0653 3 Tribunal 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; and (d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to 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 his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement; and (c) any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy.

(3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates, or the following conditions are satisfied, namely-

(a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling- house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of [NAME], at least one of them) did not quit.

(4) In this section "rent" does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985, but, subject to that, includes any sums payable by the tenant to the landlord on account of the use of furniture, in respect of council tax or for any of the matters referred to in

HAV/45UF/MNR/2025/0653 4 subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation.

The Property 10. From the information given in the papers and available on the internet the property comprises a first-floor maisonette with balcony within a modern ‘[NAME]’ development on the western side of Crawley, although with a Horsham postal address. The property was built some 8 years ago.

11. There are good ranges of facilities in Crawley, 7 miles distant, and Horsham, 6 miles distant, which both have mainline rail stations. There is also nearby access to the A264.

12. The accommodation is described as including a Hall, open plan Living/Dining/Kitchen, two Bedrooms with ‘Jack and Jill’ style Bathroom with WC. Outside there is a single car space and permit parking.

13. The property has double-glazed windows, electric heating and includes carpets, curtains and white goods all provided by the Landlord. The Energy Performance Rating is ’C’.

14. The property is within a serviced development which includes Gardens, [ADDRESS], Clubhouse, Gym, BBQ and Dining Areas, Terrace, a Residents only Hall (available for hire by Residents), Resident events and an On-Site Management Team. All of these services are included in the rent. Submissions 15. The initial tenancy began on 24th September 2021 at £1,300 per month. There have been no rent increases since that date.

16. The Landlord’s Agent states that the accommodation comprises 843 sq. ft of accommodation and that a bus service runs through the development with access to Gatwick airport, Horsham and Crawley.

17. The Agent provides photographs of the communal facilities and details of 4 similar maisonettes in the area, with their respective floor areas, all let in March 2025 at rents ranging from £1,625 to £1,695. The Agent also provides details of a similar property in [ADDRESS] marketed at £1,550 per month which does not have access to the communal facilities.

18. The Tenant refers to a damaged door with an outstanding repair issue and states that the public transport has only been recently provided. She also states that there are no shops on the development and that in her original tenancy 2 car spaces were provided but this has been reduced to 1 space with no rental adjustment.

19. The Agent provides a copy of an invoice for a door repair dated 20th June 2024.

HAV/45UF/MNR/2025/0653 5 20. The Tenant provides details of 10 comparable properties with asking rents ranging from £1,400 per month to £1,600 per month. These generally refer to properties which do not have communal facilities.

Consideration and Valuation

21. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers, which included some photographs, it decided that it could do so.

22. 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 Landlord under an assured tenancy. The personal circumstances of the Parties are not relevant to this issue.

23. The Tribunal has carefully considered the representations from the parties and associated correspondence and gave particular weight to the evidence submitted by the Landlord’s Agent of several recent lettings within the development.

24. In addition using its own judgement and knowledge of rental values in the Crawley/Horsham area the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £1,600 per month. This takes into account the additional communal facilities and the provision of only 1 car space.

25. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination 26. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £1,600 per month.

27. The Tribunal directed that the new rent of £1,600 per month should take effect from 24th March 2025, this being the date specified in the notice.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision 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.

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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.