Rent Determination for Assured Tenancy: What Tenants Need to Know

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HS/LON/00BD/MNR/2024/0182

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 31 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord [RESPONDENT], 151 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 1050 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1st May 2024

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 1st May 2008, by succession

6. Length of the term or rental period 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 mid terrace two bedroom Victorian house with rear garden.

[NAME] of Decision 26th July 2024

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Case Reference

: LON/00BD/MNR/2024/0182

Property : 31 [ADDRESS] [POSTCODE]

Tenant

: Mr [COUNSEL]

Landlord : [APPELLANT] : None

Date of Application : 30th February 2024

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

Tribunal

: Mr [NAME] Mr [NAME] of Summary Reasons

: 26th July 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £1,050 per calendar month with effect from 1st May 2024. ___________________________________

© CROWN COPYRIGHT 2024

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. On the 12 February 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,050 per month in place of the existing rent of £925 per month, being an increase of £125 to take effect from 1st May 2024.

2. On the 30 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. As such, the Tribunal’s jurisdiction is limited to such a determination. The decision set out below should not be regarded as a definitive statement.

Inspection

3. The Tribunal inspected the property on the 26 July 2024 in the presence of the Tenant, Mr. [APPELLANT].

Evidence

4. The Tribunal has had consideration to the inspection and the written submissions provided by the Tenant and the Landlord.

Determination and Valuation

5. Having consideration of our own expert general knowledge of rental values in the Teddington area, we consider that the open market rent for the property if it were in good marketable condition with reasonably modern kitchen and bathroom, double glazing, modern services, carpets and curtains and white goods supplied by the landlord would be £2,100 per month. Using our own expertise, we considered that deductions of 50% should applied to take into account the terms of the tenancy, and the actual current condition of the property as seen on inspection. This included such matters as carpets, curtains and white goods provided by the tenant, dated kitchen and sanitary fittings,no central heating, plaster repairs and noise disturbance from nearby railway line. This provides a deduction of £1,050 per month from the hypothetical rent. This reduces the figure to £1,050 per month.

It should be noted that this figure cannot be a simple arithmetical calculation and is not based upon capital costs but is the tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

6. The Tribunal determines a rent of £1,050 per calendar month.

Decision

3 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 £1,050 per calendar month.

8. The Tribunal directs the new rent of £1,050 to take effect on the 1 May 2024. This, being the date set out in the Landlord’s notice. The Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would cause the tenant undue hardship due to age and the significant increase in rental value.

Chairman: [NAME]: 26 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.