Market Rent Determination for Tenant Dispute

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. GB/LON/00AH/MNR/2024/0084

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 116 [ADDRESS], [POSTCODE]

[NAME]

[COMPANY] 30 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 1300 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 28 April 2024

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 28 September 2009

6. Length of the term or rental period Periodic Statutory Tenancy

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A one bedroom purpose built first floor flat with commercial premises on the ground floor

[NAME] of Decision 16th July 2024

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Case Reference

: LON/OOAH/MNR/2024/0084

Property : 116 [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT]

Landlord : [COMPANY] of Objection : 19 February 2024

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

Tribunal

: Mr [NAME] of Summary Reasons

: 16 July 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £1,300 per calendar month with effect from 28 April 2024. ___________________________________

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. On the 9 February 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £928.80 per month in place of the existing rent of £836.00 per month to take effect from 28 April 2024. The Tribunal were provided with a copy of the tenancy agreement which commenced on the 28 September 2009 for an initial term of 12 months.

2. On the 19 February 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 parties considered this matter could be undertaken without an inspection or hearing.

Evidence

4. The Tribunal received written submissions from the landlord together with a schedule of comparable evidence. No evidence was provided by the tenant in accordance with the Directions dated 21 May 2024.

Determination and Valuation

5. Having consideration of our own expert general knowledge of rental values in the Croydon area, we consider that the open market rent for the property if it were in good marketable condition with reasonably modern kitchen and bathroom, modern services, carpets and curtains and white goods supplied by the landlord would be £1,300 per month. The Tribunal received no evidence to disagree with this assumption.

6. Therefore, the Tribunal determines a rent of £1,300 per calendar month.

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 willing Landlord under an assured tenancy in its current condition was £1,300 per calendar month.

8.The Tribunal directs the new rent of £1,300 to take effect on the 28 April 2024. This, being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship.

3 9.It is often the case that market rents are in excess of those that are set by social landlords as a significant part of their remit is to provide affordable housing. As such, depending on the type of tenancy agreement their calculation of rent is either a percentage of market rent, or by way of an index. The Tribunal makes comparison with open market rents rather than limited to other properties which are offered by social providers. It is assumed the landlord in this case, will not seek to increase the rent proposed in its original notice as a result of this determination.,

Chairman: [NAME]: 16 July 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.