Rent Reduced Due to Property's Poor Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00BB/MNR/2020/0015

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 [ADDRESS], [POSTCODE]

[NAME]

Landlord [RESPONDENT] 39 [ADDRESS], [POSTCODE]

Tenant Miss [APPELLANT]

1. The rent is: £ 190.00 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 17 February 2020

*3. The amount included for services is not applicable 0.00 Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 7th March 2019

6. Length of the term or rental period Weekly Tenancy

7. Allocation of liability for repairs S.11 – Landlord & Tenant Act 1985

8. Furniture provided by landlord or superior landlord Fridge-freezer, washing machine, kitchen table, 2 chairs

9. Description of premises A converted first floor one bedroom flat forming part of Victorian building with central heating

[NAME] of Decision Tuesday 24th August 2021

© CROWN COPYRIGHT

Case Reference : LON/00BB/MNR/2020/0015

Property : [ADDRESS] [POSTCODE]

Applicant: [redacted]

Respondent: [redacted] Section 13 Housing Act 1988

Tribunal

: Judge [NAME] and venue of : Video Hearing 24th August 2021 meeting

Date of reasons : 27th August 2021

_______________________________________________

REASONS FOR DECISION ____________________________________

Decision of the tribunal (1) The Tribunal determines that the rent that the property in its current condition might reasonably be expected to achieve in the open market under an assured tenancy is £190 per week Background FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 1. The tenant previously lived in the property as an assured periodic tenant since 7th March 2016 for and term of six months. The Tribunal were told she vacated on 1st May 2021. On 27th December 2019 the landlord served a notice pursuant to section 13 of the Housing Act 1988 seeking to increase the rent from £150 to £275 per week effective from 17th February 2020.

2. By an undated [NAME] received on the 14th February the tenant referred that notice to the tribunal for a determination of the market rent. and the tenant subsequently requested a hearing Submissions 3. The Video hearing in this matter took place on 24th August 2021. Both the tenant and the landlord’s appeared.

4. The Tribunal issued directions for the conduct of the [NAME] on 4th March 2020. which were revised on the 27th October 2020. Following the hearing each party submitted emails in support of their case. The tribunal considered that the emails received from each party following the hearing should not be admitted as evidence as no provision has been made in the Directions for such a document and in any case the hearing had finished and all the issues raised in each email were really already dealt with'

4. Comprehensive written representations were received from the tenant which ran to 222 pages together with video submissions indicating the condition of the property upon vacation.

5. During the hearing the applicant enlarged upon these submissions but much of what she told us concerned what see saw as a very difficult relationship with the landlord, her own health problems. None of these matters. Otherwise, the tenant provided very helpful photographic and video evidence to confirming the internal condition of the property which indicated significant mould growth to most rooms, especially the bedroom. The landlord disputed the cause of the mould stating it was due to ‘life style’ and this is condensation caused by a complete lack of ventilation to the flat. 6 Neither of the parties provided the Tribunal with any evidence of comparable properties that have let in the area of the recent past. Inspection 7. Due to the current restrictions the tribunal did not inspect the property and relied on information provided by the parties and its expert knowledge. The property is a converted first floor flat forming part of a two storey Victorian building. The accommodation comprises one

3 bedroom, kitchen, living room and bathroom. There is gas central heating. In a previous Tribunal decision dated 29th March 2019 it was stated in paragraph 7 that the internal and external decorative condition is poor with dated kitchen and sanitary fittings. The rear room is extensively affected by black mould on the main walls which is certainly emphasised in the video evidence provided. The Law 8. The rules governing a determination are set out in section 14 of the Housing Act 1988. In particular, the tribunal is to determine the rent for each flat at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy. In the absence of any evidence to the contrary, the tribunal has proceeded on the basis that the landlord is responsible for repairs to the structure, exterior and any installations pursuant to section 11 of the Landlord and Tenant Act 1985 and the tenant for interior decoration. The valuation 9 Having carefully considered all of the evidence and our knowledge of rental values in E12, the Tribunal considers that the starting point would be the rent that would be achieved in good condition with modern amenities would be £290 per week for an assured shorthold tenancy agreement.

10. That, however is the rent that would be achieved if the property was let in good condition with all modern amenities. Based upon the evidence provided to the Tribunal we consider that that the rent should be reduced by £80 which represents a 27% deduction to reflect the dated kitchen and and bathroom fittings, and severe mould growth on the walls. Our deduction reduces the rent to a figure of £210 per week 11. We have not made any deduction to reflect the decorative state of the property because this is the tenants responsibility under the term of the letting. Therefore, we make a further reduction of £20 for this more onerous obligation compared to the shorthold tenancies advertised in the market today. Therefore, the rental figure for this property is £190 per week 12 Section 14 (7) of the Housing Act 1988 states that the rent set by the tribunal will apply from the date specified in the notice unless it appears to the tribunal that would cause undue hardship to the tenant.Ms [APPELLANT] made reasonable representations to the Tribunal

4 that there was undue hardship caused by the proposed rent increase and, therefore, the rent determined by the tribunal is to take effect from the date of the Tribunals decision , being 24 September 2020.

Name: Judge D [NAME]: 27th August 2021

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]. 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).