Market Rent Determination for Oxfordshire Flat

OUTCOME: Allowed

© CROWN COPYRIGHT FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/26UG/LSC/2021/0075 HMCTS code : P:PAPERREMOTE Property : [ADDRESS], [POSTCODE] Applicant (Tenant) : [APPELLANT] Respondent (Landlord) : [APPELLANT] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 23 March 2023

DECISION This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The form of determination was a paper hearing described above as P:PAPERREMOTE. The documents that the Tribunal was referred to are in bundles from the Applicant and the Respondent. The Tribunal has noted the contents and the decision is below.

2 Decision The Tribunal determined a market rent of £1,250 per calendar month effective from 23 March 2023. Reasons Background 1. On 17 November 2022 the Landlord served notice under section 13 (2) of the Housing Act 1988 to increase the passing rent from £1,000 per calendar month (pcm) to £1,200 with effect from 3 January 2023.

2. This rent is stated to be exclusive of Council Tax, Water Charges and fixed service charges.

3. The Tenant made an [NAME] dated 21 December 2022 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

4. The Tribunal issued directions on 21 December 2022, inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the tribunal to consider.

5. Neither Party requested a hearing and the matter has been determined on the papers. The Property 6. The Tribunal inspected the Property on 20 February 2023 accompanied by the Tenant..

7. The Property comprises a ground floor flat within a purpose-built apartment block constructed circa 2003. The accommodation comprises a living room, kitchen, bathroom and two bedrooms. There is gated communal car parking but limited outside garden space.

8. There is central heating and the Property is fitted commensurate with its age. The Property also benefits from double glazing together with an allocated parking space and limited external open space.

9. The Tribunal notes that the EPC banding is C and that the stated assumed floor area is 67 sqm.

10. The Council banding is D.

3 The Tenancy 11. The Tenant occupied the Property by virtue of an Assured Shorthold Tenancy that commenced 3 September 2013 and expired on 2 March 2013.

12. The rent under this Tenancy was £950 pcm.

13. The Property is defined as: “…may include any part or parts of the building, boundaries, fences, gardens and outbuildings belonging to the Landlord; unless they have been specifically excluded from the Tenancy. When the Premises are part of a larger building the Premises include the use of the common access ways and facilities.” 14. The Tenant’s repair obligations are set out at clause 11 of the lease whilst clause 31 obliges the Landlord to comply with section 11 of the Landlord and Tenant Act 1985 as further set out below.

15. In the absence of a new Tenancy being entered into, an Assured Periodic Tenancy pursuant to Section 5 (2) of the Housing Act 1988 (the 1988 Act) has arisen such that Sections 13 and 14 of the Act now apply. The Law 16. Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one: “(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy; (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy; (c) under which the premises which are let are the same dwelling- house as was let under the fixed term tenancy; (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy” 17. Section 14 of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property might reasonably be expected

4 to let in the open market by a willing landlord under an assured tenancy: a. “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 rent) are the same as those of the existing tenancy.” 18. Section 14 (2) of the 1988 Act requires the Tribunal to disregard: 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 (as defined by section 14 (3) of the Act) otherwise than as an obligation; 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.” 19. Examples of a tenant’s failure to comply with the terms of the lease may include, for example, a lack of redecoration.

20. Section 11 of the Landlord and Tenant Act 1985 (the 1985 Act), provides that the Tribunal is to imply a covenant by the Landlord: a. “to keep in repair the structure and exterior of the dwelling- house (including drains, gutters and external pipes), b. to keep in repair and proper working order the installations in the dwelling-house for the supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences, but not other fixtures, fittings and appliances for [NAME] use of the supply of water, gas or electricity), and c. to keep in repair and proper working order the installations in the dwelling-house for space heating and heating water.” 21. Section 14 (7) of the 1988 Act states: “Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate

5 tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.” Representations – The Tenant 22. Ms [APPELLANT] submitted representations on behalf of the Tenant setting out the impact of the proposed increase on the Tenant’s financial status and her concerns as to the health implications.

23. She also explained that the Tenant has “…recently applied to the Oxford Country Council Housing Register and is awaiting their response as to whether she will be accepted.” 24. No evidence was provided in respect of the quantum of rent contended for and no concerns in respect of the Property were raised. Representations – The Landlord 25. The Landlord stated that, whilst she appreciated the Tenant’s situation, she had only increased the rent by £100 per month over the period of occupation by the Tenant and raised concerns in respect of her own financial situation.

26. The Landlord also included a schedule of 39 properties where either leases had been agreed or the properties were available for let. Of these, the Landlord referred, in particular, to another flat within the same development which provided the same accommodation to the Property and was advertised at £1,350 pcm. The Tribunal understand that this Property is Flat 15.

27. Based on this evidence, the Landlord contended that “…I am being very fair with my request for an increase of £200 pcm.” Determination 28. In determining the market rent, the Tribunal has regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision that would be likely to be considered by a prospective tenant. The current rent and the period that has passed since that rent was agreed or determined is not relevant.

29. The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is therefore unable to have any regard to the personal circumstances or identities of the actual landlord and tenant in assessing the level of rent.

30. Whilst the Tribunal understands and has sympathy with the personal circumstances of both the Tenant and the Landlord, these are not matters that can be taken into account in determining the rent payable.

6 31. With regard to disrepair, the Tribunal noted some external cracking under the windows but concluded that this is a matter to be dealt with between the Landlord and the [COMPANY] and is not relevant to these proceedings.

32. The Tribunal took account of the rent of £1,350 pcm in respect of Flat 15 and noted that this property sold for £250,000 on 27 August 2003 whilst the Property sold on 27 June 2003 for £190,000.

33. Whilst this evidence is historic and capital values have limited relevance to rental values, the difference in values is consistent with other sales evidence within the same development and supports the view that upper floor flats that are otherwise identical to ground floor flats are more attractive in the market and thereby attract higher values. The Tribunal is therefore of the opinion that Flat 15 would attract a significantly higher rent that the Property.

34. With this in mind, the Tribunal reviewed the full list of comparable properties helpfully provided by the Landlord and also made its own inquiries.

35. The Tribunal determines the market rental of the Property, having regard to its position within the development, to be £1,250 pcm. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

36. The Tribunal has taken account of the representations submitted by Ms [NAME] in light of section 14 (7) of the 1988 Act as set out at paragraph 21 above and directs that the revised rent is to be effective from 23 March 2023. Name: [NAME] [NAME]: 23 March 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].

7 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).