Market Rent Set at £825 Per Month for Studio Flat in High Wycombe

OUTCOME: Allowed

© CROWN COPYRIGHT FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00MX/MNR/2024/0020 HMCTS code : P:PAPERREMOTE Property : [ADDRESS], [POSTCODE] Applicant (Tenant) : N [APPELLANT] Respondent (Landlord) : A [APPELLANT] C/O [APPELLANT] of application : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 27 April 2024 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 determination 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 £825 per month effective from 3 December 2023. Reasons Background 1. The Landlord served a notice dated 17 October 2023 pursuant to section 13 (2) of the Housing Act 1988 which states an increase in the passing rent from £750 per month to £850 per month with effect from 3 December 2023 2. This rent is stated to be exclusive of Council Tax, Water Charges, and fixed service charges.

3. The Tenant made an application on 3 November 2023 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

4. The Tribunal issued directions on 1 February 2024 inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the Tribunal to consider. The Property 5. The Tribunal did not inspect the Property but relied on the documents provided to it by the Parties together with information in the public domain.

6. The Property comprises a second floor/loft studio flat within a purpose built complex constructed circa 2019 and providing a single open plan area arranged into a bedroom/living room/kitchen together with a separate bathroom.

7. There is no lift or private car parking provision. [NAME]

8. The Tenant took occupation pursuant to an Assured Shorthold Tenancy commencing 3 June 2022 for a term of 6 months at an initial rent of £750 per month.

9. The Tenant’s repair liabilities are set out at clauses 5.1 to 5.16 of [NAME] whilst the Landlord’s obligations are detailed at clause 10 of [NAME] which refers to section 11 of the Landlord and Tenant Act 1985.

3 The Law 10. 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 [NAME] 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 [NAME] remains an assured tenancy” 11. 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:  “having the same periods as those of [NAME] to which the notice relates;  which begins at the beginning of the new period specified in the notice;  the terms of which (other than relating to the amount of rent) are the same as those of the existing tenancy.” 12. Section 14 (2) of the 1988 Act requires the Tribunal to disregard:  “Any effect on the rent attributable to the granting of a tenancy to a [NAME];  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;  Any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of [NAME].” 13. Examples of a tenant’s failure to comply with the terms of the lease may include, for example, a lack of redecoration.

4 14. 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 making 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.” 15. 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 [NAME] 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.” Representations – The Tenant 16. The Tenant completed the Application Form and provided a covering letter.

17. The Tenant commented that “After conducting thorough research on reputable property platforms such as Rightmove and Zoopla, I discovered that similar size studio flats within a 10-minute drive radius range from £595 to £800. Moreover, one-bedroom flats in the vicinity start at £800 to £850. Given that my studio flat is comparable to the lower end of the one-bedroom flats in terms of pricing, I contend that the proposed rent increase is disproportionately high compared to similar properties in the area.” 18. The Tenant also attached a screen shot of four property adverts at rents ranging from £595 per month to £850 per month.

19. The Tenant also completed a Reply Form wherein further comments were made as follows:  “the studio is located in the loft so 2 out of 4 walls are slanted and some space underneath cant be used that well.  No blinds were provided when I moved in so I had to buy my own

5  Landlord/letting agency still haven’t fixed a fitting above the front door which was flagged when I first moved in in June 2022  Took a year to get Landlord/letting agency to put netting on solar panels above my bed on the roof as pigeons were nesting under them and cooing/running under them & affecting my sleep as was waking me up at all times of the night.” Representations – The Landlord 20. Neither the Landlord or their agent have submitted any documentation or taken part in these proceedings.

21. The Tribunal therefore had no evidence before it as to the basis of the requested rent increase or any indication as to whether the Landlord challenges the evidence provided by the Tenant. Determination 22. In determining the market rent in respect of the Property, 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.

23. 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. The Tribunal is therefore unable to take into account the Tenant’s ability to pay the rent or the Landlord’s need to achieve a certain income.

24. In addition, historic matters between the actual landlord and tenant are not relevant to the rent likely to be offered by a prospective tenant. The Tribunal can therefore only have regard to the Property as it exists on the relevant date of the proposed rent review having regard to the statutory assumptions.

25. As set out above, section 14 of the 1988 Act requires the Tribunal to determine the rent at which the Property might reasonably be expected to let with effect from the date specified for commencement of the new rent as set out in the section 13(2) Notice.

26. The Tribunal has considered the evidence submitted by the Tenant in light of its own market knowledge and experience. In this regard, the Tribunal notes that the Property is only a 11-minute walk to High Wycombe Station such that it is likely to be attractive to commuters despite the restricted size of the Property.

27. The Tribunal therefore determines the market rental of the Property as at the effective date to be £825 per month.

6 28. The rent payable may not exceed £825 per month. However, this does not prevent the Landlord from charging a lower rent. Name: [RESPONDENT] [NAME]: 27 April 2024 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 either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013). 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. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).