Market Rent Determination for Four-Bedroom Property in Ashford

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HAV/29UB/MNR/2024/0517

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 101 [ADDRESS] [POSTCODE]

[NAME] Miss [RESPONDENT]

Landlord c/o [NAME], 4 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT] (& [NAME] [APPELLANT] [NAME])

1. The rent is: £ 1750.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 4 October 2024

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

4. Date assured tenancy commenced 4 December 2021

5. Length of the term or rental period 12 months, Assured Periodic Tenancy

6. Allocation of liability for repairs In accordance with agreement

7. Furniture provided by landlord or superior landlord None

8. Description of premises An end of terrace three storey house located on a modern estate known as [ADDRESS] with rear garden and two allocated parking spaces. Accommodation comprises: four bedrooms, two reception rooms, kitchen, bathroom, en-suite shower room, cloakroom.

[NAME] of Decision 22 October 2024

1

Case Reference

: HAV/29UB/MNR/2024/0517

Property : 101 [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT] & [NAME] [APPELLANT]

Landlord : c/o [NAME].

Date of Objection : 2nd September 2024

Type of [NAME] : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal

: Mr [NAME] Miss [NAME] of Summary Reasons

: 22 October 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £1,750 per calendar month with effect from 4 October 2024. ____________________________________

© CROWN COPYRIGHT 2023 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

SUMMARY REASONS

Background

1. On the 16th August 2024 the Landlord’s agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,750 per month in place of the existing rent of £1,550 per month to take effect from 4 October 2024.

2. [NAME] [NAME] is dated the 2nd September 2024, 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 on the basis of the papers provided by the parties.

Evidence

4. The Tribunal has consideration of the extensive written submissions provided by the landlord’s agent with a large selection of comparable evidence. The Tenant submitted a completed Rent Appeal Statement with comparable evidence.

Determination and Valuation

5. Firstly, having consideration of the parties’ comparable evidence together with our own expert, general knowledge of rental values in the Ashford area, we consider that the open market rent for the property in its current condition would be £1,750 per month.

6. The Tribunal have not made an adjustment in relation to condition of the property based upon the photographic evidence and the parties’ statements.

Decision

7. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under an assured tenancy governed by the relevant clause in the agreement was £1,750 per calendar month.

8. The Tribunal directs the new rent of £1,750 to take effect on the 4 October 2024. This being the date set out in the Landlord’s Notice of Increase The Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship as no such evidence was provided.

3

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 [NAME] for permission to appeal should be made on Form RP PTA.

© CROWN COPYRIGHT

Case Reference

: HAV/29UB/MNR/2024/0517

Property : 101 [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT] & [NAME]

Landlord : c/o [NAME].

Date of Objection : 2nd September 2024

Tribunal

: Mr [NAME] [NAME] of Reasons

: 27 November 2024

_______________________________________________

DECISION

REASONS FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 Background 1. The Tribunal issued summary reasons following determination of this [NAME] 0n the 22 October 2024. Either party may request full reasons. These full reasons are provided following a written request from the Tenant dated 6 November 2024.

2. The Tenants have lived in the property since 2021 and the Tribunal were provided with a copy of the fixed-term agreement covering the period between 4 December 2021 and assumed to end on 3 December 2022. Therefore, the fixed term tenancy ceased, and the Tenants continued to occupy the property under a statutory periodic tenancy.

3. On the 16 August 2024 the Landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £1,550 per calendar month to £1,750 per calendar month being an increase of £200 effective from 4 October 2024.

4. By an [NAME] dated 2 September 2024, the Tenants referred that Notice to the Tribunal for determination of the market rent.

5. Directions, dated 16 September 2024, required the Landlord to complete a reply form and the Tenants to do similar. Both the Landlord and the Tenants complied and both parties agreed that this matter could be determined on the papers alone.

6. These reasons address the key issues raised by the parties. They do not recite each point referred to in submissions but concentrate on those issues which, in the Tribunal’s view, are fundamental to the determination. Evidence 7. The Tribunal had before it a bundle of evidence, which had included a background to the case and the Directions. Each of the parties made comprehensive submissions in writing together with photographs and comparable evidence of similar properties on the [ADDRESS] estate and the surrounding area.

8. The evidence showed that the Tenants were seeking a new fixed term of three to five years’. This request was refused by the Landlord. The Tenant felt that the proposed increase in rent was not in line with other properties in the area which they believed would come to the market with a minimum one-year term in the agreement.

9. The Landlord’s agent [RESPONDENT] provided the Tribunal with a large selection of comparable evidence for four-bedroom properties that had

3 let in the general area. The Tribunal focused on the three storey semi detached houses located on the [ADDRESS] estate. The Tribunal identified 8 such properties, which were let. The rental range was £1,800-£2,200 per month. The rental levels vary subject to floor area and quality of fittings. The Landlord’s agent concluded that based on this comprehensive evidence the subject property would let in today’s market at £1900 per month.

10. The Tenant completed the rent appeal statement and the following comments were made “We have not disputing the price but that properties of the same size and in excellent condition are the same value and come with a fixed term agreement” A further statement confirms “ We are amenable to the rent increase, but with a fixed term contract.” The Tenants provided details of comparable evidence, which were mainly detached houses. There was one four bedroom, three storey semi detached house which let at £,1750 per month. Property 11. The property is an end of terrace three storey house built in 2021 with rear garden, and two allocated parking spaces. Accommodation comprises: four bedrooms, two reception rooms, kitchen, cloakroom, bathroom, en-suite shower room. The property has an EPC Rating of B81 and a floor area of 1,307 square feet. The property has gas central heating, double glazing, fitted floor coverings and carpets, mainly provided by the landlord,curtains and integrated white goods in the kitchen except washing machine. The Landlord had improved the extent of the bathroom tiling and a replacement cooker had been provided by him. The Landlord’s agent stated there was no disrepair. However, [NAME] listed ill-fitting front entrance and patio doors which caused draughts, condensation to the living room windows, holes in the shed roof, broken pipes and gutters and birds nest issues.

12. The property is located on a modern estate close to local amenities, shopping facilities and transport links and schools. The Law 13. The law governing a determination is set out in section 14 of the Housing Act 1988 (‘the 1988 Act’). 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 [NAME] 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 [NAME] improvements or failure to comply with the terms of the tenancy.

4 14. In the absence of any evidence to the contrary, and as set out in the previous tenancy agreement, 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 15. The Tribunal first considered whether it felt able to reasonably and fairly decide the case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.

16. 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 [NAME] under an assured tenancy. Such a letting would normally include carpets, curtains, cooker, fridge and washing machine. Market rents are normally expressed as a figure per month.

17. The personal circumstances of the Parties are not relevant to this issue.

18. The Tribunal has considered all the submissions from the parties and on the evidence provided the Tenant is in agreement with the proposed rental level of £1,750 and the only dispute is a proposed fixed term which is a matter between the parties.

19.

For these reasons, the Tribunal considers that an achievable rent for a similar four-bedroomed property in a good marketable condition with reasonably modern kitchen and bathroom fittings, modern services with carpets curtains and white goods provided by the Landlord would be £1,750 per month. This figure is based upon the comparable evidence provided by the parties and the Tribunal’s professional judgement. This figure took into account [NAME] evidence in connection with the condition of the property. Decision 20. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under an assured tenancy in its current condition was £1,750 per calendar month.

21. The Tenants made no representation that the proposed starting date for the new rent specified in the Landlord’s notice would cuase undue hardship.

5 22. The Tribunal directed the new rent of £1,750 per calendar month to take effect on the 4 October 2024. This being the date set out in the Landlord’s Notice of Increase.

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 [NAME] which has been dealing with the case. The [NAME] for permission to appeal must arrive at the [NAME] 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).