Market Rent for Flat in Newbury Set at £920

OUTCOME: Dismissed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00MC/MNR/2022/0073 HMCTS code : P:PAPERREMOTE Property : [ADDRESS], [POSTCODE] Applicant (Tenant) : [APPELLANT] [NAME] Respondent (Landlord) : [COMPANY] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 9 November 2022

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 £920 per calendar month effective from 1 September 2022.

Reasons Background

1. On 30 June 2022 the Landlord served notice under section 13 (2) of the Housing Act 1988 to increase the passing rent from £825 per month to £899.25 with effect from 1 September 2022.

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

3. The Tenant made an undated [NAME] to the Tribunal in reliance on section 13 (4) of the Housing Act 1988. This was received by the Tribunal on 2 August 2022 by email.

4. The Tribunal issued directions on 15 August 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.

The Property 6. The Tribunal has not inspected the Property and has relied upon the papers provided by the Parties together with Google Images and Rightmove historic sales particulars.

7. The Tenant described the Property as being a ground floor flat providing one bedroom, one bathroom and a kitchen/living area. The Landlord advised that there is central heating, double glazing and white goods provided by the landlord.

8. According to Google Images, the flat is located within a four storey modern block of flats located in the centre of Newbury within close distance to the railway station. The Landlord and Tenant agree that there is off-street parking.

9. The Tribunal notes that the EPC banding is E effective from 24 October 2015 and that the assessed floor area extends to 45 square metres.

10. The Tribunal also notes that the Property has been placed in Council Tax C.

3 The Tenancy 11. The Tenant occupied the Property by virtue of an Assured Shorthold Tenancy that commenced 24 July 2017 and expired on 24 January 2018.

12. The initial rent under the Tenancy was £795 per month.

13. The Demise was defined as 8 Mill Reef House and the Landlord agreed to provide parking space no 17 for use by the Tenant as part of the services.

14. Part F of the Tenancy sets out that the Landlord was required to repair the Property in accordance with sections 11 to 16 of the Landlord and Tenant Act 1985 (as amended by the Housing Act 1988).

15. In the absence of a new tenancy being entered into, an Assured Periodic Tenancy has arisen such that Sections 13 and 14 of the Housing Act 1988 (the 1988 Act) now apply. The Law 16. Section 5 (3) of the 1988 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 [NAME] under the fixed term tenancy immediately before it came to an end to the [NAME] 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. It is therefore the case that the property assumed to be let under the Periodic Tenancy is the same as that let according to the terms of the immediately preceding tenancy.

18. Section 14 of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property might reasonably be expected to let in the open market by a willing landlord under an assured tenancy:

4 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.” 19. 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.” 20. Examples of a tenant’s failure to comply with the terms of the lease may include, for example, a lack of redecoration.

21. 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.” 22. 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 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.”

5 Representations – The Tenant 23. The Tenant has not specified what rent is contended for nor provided any evidence of value. In this regard, the Tenant’s representations refer to the state of repair of the property and matters arising in respect of their use of their allocated car parking space.

24. The Tenant’s [NAME] states: 25. “[ADDRESS] but it is managed by a [COMPANY]. The landlord does not accept any responsibility or liability for the car park. My car was damaged in the car park and they didn’t do anything. They don’t even have CCTV.” 26. The Tenant included copies of email correspondence with the Landlord in respect of damp arising from blocked guttering, an issue with the electrical ventilation and defective window seals. The Tribunal notes that the Landlord offered compensation.

27. The email correspondence also refers to issues in respect of the Tenant’s ability to use their allocated car parking space due to trespass by unauthorised users.

28. In this regard, the Tenant stated on the Reply Form that: 29. “I have been paying an increased rent for a parking space which no longer belongs to me which is a misrepresentation by the Landlord…” and “I have now lost use of my parking space.” 30. However, the Tenant has not provided any documentation to demonstrate that their previous right of parking has been extinguished. Representations – The Landlord 31. The Landlord has not provided any evidence in support of the proposed rent. With regard to car parking issues, the Landlord stated: 32. “The tenants car was damaged whilst the car park was under management by [NAME]. Therefore the claim would need to go via [NAME] or their insurance. Unfortunately cars are left at the owner’s risk.” 33. The Tribunal has noted the contents of the email dated 30 August 2022 addressed to the Tenant wherein various comments have been made in respect of the car parking. In summary, the Landlord advises the Tenant that the car park management was under review pending the sale of the freehold interest. Determination 34. The Tenant raised the following main issues:

6 1) Loss of car park space 2) Damage to car whilst parked in allocated space 3) Blocked guttering causing damp 35. The Tribunal notes that the original lease granted the Tenant the use of parking space No.

17. No documentation has been provided by either the Landlord or Tenant to demonstrate that this entitlement to the use of the allocated car parking space has been terminated.

36. The Tribunal has noted the provisions of paragraph 23 of Part E of the lease. However, section 5 (3) (e) of the 1985 Act provides that the terms of the original lease still apply on commencement of a periodic tenancy such that there is no reason not to assume, in the absence of any evidence to the contrary, that the Tenant still benefits from this space.

37. Paragraph 25 of Part E and paragraph 2 on page 17 of the Lease sets out the respective liabilities of the Tenant and Landlord in respect of insurance. In this regard, damage to vehicles is a matter for insurance and is not a relevant matter to be taken into account in determining the market rent.

38. Page 16 of the Lease confirms that section 11 of the 1985 Act applies in respect of the Landlord’s obligations regarding repair of the Property. It is noted from the email correspondence provided to the Tribunal that the Landlord has complied with these obligations and offered compensation to the Tenant. The assessment of market rent assumes that the Landlord has complied with section 11 of the 1985 Act and the occurrence or otherwise of disrepair is not a relevant matter when assessing the market rent.

39. In simple terms, the assessment of the market rent assumes that Property is as described within the Lease and both the Landlord and Tenant have complied with their contractual and statutory obligations. A failure by either Party to fully comply with their obligations is therefore disregarded in calculating the market rent.

40. It is therefore the case that, whilst the Tribunal understands the points made by the Tenant, they are not matters that can lawfully be taken into account in determining the revised market rent.

41. In determining the market rent, the Tribunal has had 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.

42. The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is therefore unable

7 to have regard to the personal circumstances or identities of the actual landlord and tenant in assessing the level of rent.

43. As neither the Tenant nor the Landlord have submitted any evidence of value, it has been incumbent upon the Tribunal to make independent investigations.

44. The Tribunal has noted the following:

1) Two-bedroom flats at Weavers Yard (no parking) – asking rents ranging from £1,415 pcm to £1,525 pcm 2) One bedroom second floor flat at [ADDRESS] (no parking) – asking rent £800 pcm 3) One bedroom ground floor flat at [ADDRESS] (no parking) – asking rent £750 pcm 4) Two-bedroom flat at [ADDRESS] (allocated car parking) – asking rent £950 pcm 5) Two-bedroom second floor flat at [ADDRESS] (car parking available) – asking rent £975 pcm 45. All these properties differ in respect of their locality, age, configuration and fit out. However, they are of assistance in setting a general level of value.

46. The Tribunal therefore determines the market rental of the Property with effect from 1 September 2022 at £920 per calendar month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

Name: [RESPONDENT] [NAME]: 9 November 2022

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].

8 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).