Market Rent Set at £1,950 Per Month - First-tier Tribunal Decision

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. LON/00AT/MNR/2024/0648

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

[ADDRESS] [POSTCODE]

[NAME_1]

[NAME_2]

MR J [NAME_3]

Landlord [COMPANY_4]

Tenant [NAME_5]

1. The rent is: £ 1950.00 Per MONTH (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 18TH JULY 2024

*3. The amount included for services is/is

negligible/not applicable N/A Per

*4. Service charges are variable and are not included

[NAME_1] Date of Decision 29TH JANUARY 2025

5. Date assured tenancy commenced 18TH JULY 2022

6. Length of the term or rental period MONTH

7. Allocation of liability for repairs LL REPAIRS

8. Furniture provided by landlord or superior landlord NOT KNOWN

9. Description of premises AN END OF TERRACE 3 BEDROOMED HOUSE WITH GARDENS GARAGE AND PARKING SPACE

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : LON/00AT/MNR/2024/0648

Hearing Type : In Person

Property : 18 [ADDRESS] [POSTCODE]

Applicant : [redacted]

Representative : In person

Respondent : [redacted]

Representative : In person

Date of Objection : 16 September 2024

Type of Application : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [NAME_1]

[NAME_2]

Mr J [NAME_3]

Date of Hearing : 29 January 2025

Date of Inspection : 29 January 2025

Date of Full Reasons : 5 February 2025

STATEMENT OF FULL REASONS ON AN APPLICATION FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988.

REASONS Background

1. On 18 July 2024 the landlord served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above property from the passing rent of £1,530.00 per calendar month to £1,850.00 per month.

2. On 16 September 2024 the tenant made an application to the Tribunal for the determination of a market rent.

3. The original tenancy is believed to have begun on 18 July 2022.

4. The tenant occupies the property by way of an Assured Periodic Tenancy.

5. By way of a letter dated 21 January 2025, the Tribunal issued amended directions. These required the landlord to provide details of evidence on which they wished to rely by way of reply by 10 December 2024. The tenant was directed to do the same by 24 December 2024 and the landlord was given until 24 January 2025 for their response thereto.

6. On 16th January 2025 the Tribunal wrote to the parties confirming details for a hearing date and inspection to take place on 29 January 2025.

7. Both parties took the opportunity to make submissions.

8. In consideration of the Market Rental Value of the subject property, the Tribunal has taken into consideration all documentation before it including various letters and the any reply forms returned by the parties.

9. By way of a personal statement (undated), the tenant states that the property has regularly suffered from some damp and mould growth. The tenant confirmed that the Landlord had had a handyman undertake redecoration and clear the garden but then requested her to pay for it . It was not clear if payment was made but in any

event the Tribunal is of the opinion that this one-off incident has no impact on the general rental value of the property.

10. The landlord says there have been difficulties with the landlord’s contractors and arranging times for them to gain access. Work has been completed to fill a hole resulting from impact damage.

11. In addition, the tenant referred specifically to the collapse of the kitchen ceiling in December 2023 and the fact that the landlord did not react immediately to have this repair effected and that no work was completed until the New Year.

12. The tenant alleges that the property suffers from electrical issues and advises that the landlord is harassing her in numerous ways including the issuing of a money order.

13. In the tenant’s Reply form the tenant describes the accommodation, confirms that the property has central heating, double glazing, carpets and curtains, and that white goods were supplied by the landlord.

14. The tenant requested an inspection but did not request a hearing.

15. She confirms that there is outside parking and a garage but reiterates that the property does suffer from mould and that an electrical test has revealed that work was required to the electrical installation. Finally, she says that the bathtub leaks, there are leaks from radiators and from the water pump.

16. In a letter to the Tribunal dated 30 November 2024, the landlord gives some details of the original circumstances relating to the initial letting and states that the tenant has been uncommunicative and has failed to allow access to contractors.

17. They confirm that the property does have a private garage and parking space and provide details of a number of comparable properties ranging from two-bedroom flats at £1,600 per calendar month to three-bedroom houses at £2,300 per calendar month. They state that in their opinion the property is worth between £2,000 and £2,400 per calendar month.

18. In the landlord’s Reply form the landlord confirms that they want a hearing and an inspection of the property. They provide details of the accommodation and list improvements that have been undertaken.

19. Lastly, in a letter to the Tribunal dated 16 January 2025, the landlord explains once more the circumstances of the original letting and advises that the tenant’s suggestions of harassment are unfounded. The Landlord states that the tenant has not maintained the property as she should. She does not report repairs, does not look after the garden or clean the property and that they have paid for gardeners in the past.

On 29 January 2025, on the basis of paper submissions and following a hearing and inspection, the Tribunal determined the Market rent of the above property at £1,950 per calendar month.

Hearing 20. A face-to-face hearing took place on 29 January 2025.

21. Attending were [NAME_5] (Tenant) and [NAME_4] on behalf [COMPANY_4] (Landlord)

22. [NAME_5], as applicant, was given the opportunity to speak first and confirmed that there were a number of issues that she had detailed in her submissions and that she had referred the these to the Council.

23. She said the work was not done and that issues began in 2023 when a surveyor’s report detailed various works required to the property and none of this was completed by the landlord. She referred to the small money claim made by the landlords and alluded to alleged harassment.

24. Specifically, the tenant referred to the leak affecting the kitchen ceiling and its repair and she maintained that some damage still remains.

25. [NAME_5] also referred to the condition of the electrical installation and an electrical report which required work to be done.

26. She confirmed that this work has now been completed.

27. On further questioning from the Tribunal, [NAME_5] said that the kitchen ceiling had been repaired and redecorated but structural damage remained. She could give no specific details of this however.

28. On the issue of mould, the tenant confirmed that there was mould in the bedroom, bathroom and living room areas.

29. Lastly, when asked about the open market rental value of the property, the tenant said that in her opinion the property was a two-bedroom property as the room described as a third bedroom was not sufficiently large to be classed there as.

30. The tenant was unable to give details of any comparable properties but advised that in her opinion the open market rental value of the property is between £1,500 and £1,700 per month in good condition.

31. The tenant was unable to give any opinion of what reduction should be applied for the disrepairs that she had detailed. However, she stated that, in her view, the rent should not increase from its current level of £1530.00 per calendar month.

32. [NAME_4] spoke on behalf of the landlords and reiterated the circumstances of the original letting.

33. [NAME_4] referred to the repairs to the kitchen ceiling and said that the problem had arisen in late December and had been repaired between 3rd and 8th January 2025. She also said that contractors do struggle to make contact and gain access to the property.

34. In respect of rent. The landlord referred specifically to No. [ADDRESS], a one bedroomed flat that they own which was let at £1,450 per calendar month and [ADDRESS], another property which they own, comprising a three- bedroom semi-detached house let at a rent of £2,250 per calendar month from September 2024.

35. [NAME_4] said that they had spoken to [NAME_7] about the subject property and that they had confirmed that it would let at £2,400 per calendar month. The landlords were not able to give any documentary evidence relating to this, however.

36. The Tribunal pointed out that the landlord’s notice had been served at a figure of £1,850 and that the evidence that they had provided both in written submissions and during the hearing were generally at a figure higher than this for similar property.

37. The landlord said that the rent of £1,850 was always a low figure and that they believed that the property would actually fetch £2,150 per month in the market at the date of the notice.

Hardship 38. No claim for hardship was made by the tenant.

Inspection 39. The Tribunal attended the property to undertake an inspection on 29 January 2025.

40. It was apparent that the property was as it was originally constructed designed and arranged.

41. The accommodation comprises: Ground floor – entrance hall, open plan lounge / dining area, kitchen; First floor – landing, three rooms, bathroom/WC; Externally gardens front and rear and garage and parking space.

42. [NAME_4], a representative landlord, and the tenant were present during the inspection.

43. On arrival the Tribunal notified the parties that they should be provided with access to all possible areas of the property but that they could not provide any additional evidence nor engage in conversation about the property nor the rental value thereof.

44. All rooms were accessible.

45. Throughout the property, access was severely limited by the number of items stored therein.

46. Having inspected the property, the Tribunal was able to confirm and assess condition, examine work and noted the cleanliness of the property and that maintenance of the garden area was required. However, the Tribunal did not believe that this level of cleanliness and condition of the garden at a snapshot of time would affect the general rental value of the property.

47. The Tribunal examined the repair to the kitchen ceiling specifically and while it is not perfect, there was no sign of any structural damage or ongoing deterioration. The hole understood to have resulted from the leak has been filled and decorated.

48. There was evidence of minor mould within some areas believed to result from minor condensation but in the front bedroom extensive mould is believed to result from a leaking gutter externally noted by the Tribunal.

49. Lastly, the Tribunal were able to examine the smallest first floor room at the front of the property which the tenant alleges is too small to be a bedroom.

50. This is a typical sized box bedroom and at the time of inspection contained a bed and sufficient room for circulation.

The Law

51. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the property, matters contained within the rent, repairing obligations, etc. This means that issues such as the tenant’s ability to pay the rent or bills associated with the property are not a consideration for the tribunal in assessing the rent.

Valuation

52. Following consideration of the written and photographic submissions given by both parties, the hearing, the inspection and taking into account the Tribunal’s inspection and using its own knowledge and experience of the rental market in the area, the Tribunal finds that the market rental value of the property, if it was in good condition, would be £2000.00 per calendar month.

53. Taking everything into consideration including the general condition of the property, the Tribunal finds that it is necessary to adjust the market rental value to reflect the penetrating damp evident in the front bedroom and will therefore make a 2½% deduction in the market rental value of the property to reflect its condition.

Valuation calculation

54. Open market rent £2,000.00 per calendar month

Deduction for adjustments detailed above 2½% £ 50.00 per calendar month

Adjusted rent £1,950.00 per calendar month

The Tribunal therefore determines that the market rental value of the property should be set at a figure of £1950.00 per calendar month.

Chairman:

[NAME_1] Chairman

Date: 13th February 2025

ANNEX OF RIGHTS FOR MARKET RENTS

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 might have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with this case

The application for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the Decision to the person making the application.

If the application is not made within the 28-day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit.

The application 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 making the application is seeking. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).