Tenant Wins Reduced Rent Due to Disrepair and Lack of Amenities

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. LON/00BJ/MNR/2020/0068

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 121A [ADDRESS], [POSTCODE]

[NAME]

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

Tenant Mr [APPELLANT]

1. The rent is: £ 75.00 Per Week (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 20 April 2020

*3. The amount included for services is/is

negligible/not applicable n/a Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced By succession 28 November 2006

6. Length of the term or rental period Weekly

7. Allocation of liability for repairs S.11

8. Furniture provided by landlord or superior landlord None

9. Description of premises An unmodernised two bedroom, first floor flat, with living room kitchen/dining room/w.c., box room and garden,. without central heating, hot water or bathroom.

[NAME] [NAME] of Decision 21 October 2020

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00BJ/MNR/2020/0068 HMCTS CODE ; P: Paper Remote. Property : 121A [ADDRESS] [POSTCODE]. Applicant : [redacted] Representative : In person. Respondent : [redacted] : In person Type of [NAME] : Decision under S.13 Housing Act 1988. Tribunal member(s) : [NAME], FRICS Date of decision : 21 October 2020

DECISION

Covid-19 pandemic: description of hearing This has been a remote video hearing which has been consented to/not objected to by the parties. The form of remote hearing was V: Video Remote. A face-to-face hearing was not held because it was not practicable, and all issues could be determined during a remote hearing. The tribunal was provided with the Notice of Increase and submissions from the tenant. No documents were received from the landlord. Decision: The Tribunal determines the market rent for the property in its current condition to be £75.00 per week, exclusive of council tax and water rates. The determination takes effect from 20 April 2020. The reasons for the tribunal’s decision are below. Background:

1. The tenant, Mr. [APPELLANT], succeeded to his parents tenancy on 28 November 2006 as an assured tenant under the Housing Act 1988.

2. The landlord served a S.13 Notice to increase his rent with effect from 20 April 2020 from £90.00 per week to £100.00 per week.

3. Mr. [NAME] says that the property is in a poor state of repair, that ceilings have collapsed and are cracked, that he has no bathroom or hot water, the kitchen lacks storage space and that the kitchen, dining room and w.c are combined. He says that the rent increase in unwarranted because the landlord has not carried out promised repairs.

4. The landlord did not make any representations with regard to the referral and made no comments as to the disrepair within the flat. The tribunal therefore considers that it is entitled to accept the tenant’s description of the flat when determining the rent that a tenant would be willing to pay. Reasons for the tribunal’s decision:

5. Section 14 of the Housing Act 1988 requires the tribunal to set a ‘market rent’ for the property, that is the rent that could be reasonably expected if the property were introduced to the market in its current condition and on the terms of a similar tenancy.

6. In this instance, the tenancy is Assured not an Assured Shorthold, and as such the tenant has a more onerous repairing obligation, which should be considered when setting the rent, although this may also be offset against the more beneficial security of tenure offered under an Assured Tenancy. In this case, the tribunal considers that these matters make no difference to the rent charged.

7. However, the property does not have hot water or a bathroom, and in the current market tenants would expect at least to have a bathroom and hot water, as well as an adequate kitchen for cooking and food preparation. The tenants say that these are absent.

8. The tenant also says that ceilings are cracked as are walls and that the ceilings are detached in places.

9. Although the rent sought by the landlord could not be described as a full market rent, the tribunal considers that few tenants would accept a tenancy of a property in this condition unless there was a further substantial discount on the rent.

10. In the circumstances the tribunal considers that the passing rent for this property should be £75.00 per week with effect from 20 April 2020.

Name: [NAME] [NAME]: 21 October 2020.

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).

THE LAW:

S.13 The Housing Act 1988. – Increases of rent under assured periodic tenancies: 13(1); This section applies to – (a) A statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and (b) Ant other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period. 13(2) For the purpose of securing an increase in the rent under a tenancy to which this section applies, the landlord may serve on the tenant a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy6 specified in the notice, being a period beginning not earlier than – (a) The minimum period after the date of the service of the notice; and (b) Except in the case of a statutory periodic tenancy – a. In the case of an assured agricultural occupancy, the first anniversary of the date on which the first period of the tenancy began; b. In any other case, on the date that falls 52 weeks after the date on which the first period of the tenancy began; and c. If the rent under the tenancy has previously been increased by virtue of a notice under this subsection or a determination under S.14 i. In the case of an assured agricultural occupancy, the first anniversary of the date on which the increased rent took effect; ii. In any other case, the appropriate date. (3) the minimum period referred to in subsection (2) above is; (a) in the case of a yearly tenancy, six months; (b) in the case of tenancy is less than a month, one month, and (c) in any other case, a period equal to the period of the tenancy. (4) In this section ‘rent’ does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985 but, subject to that, includes any sums payable by the tenant to the landlord on account of the use of furniture, in respect of council tax or for any of the matters referred to in subsection 1(a) of that section,

whether or not those sums are separate from the sums payable for the occupation of the dwelling house concerned, or are payable under separate agreements. S.14 Determination of rent by the tribunal: (1) Where under subsection (4)(a) of Section 13, a tenant refers to the appropriate tribunal a notice under subsection (2) if that section, the appropriate tribunal shall determine the rent at which, subject to section (2) and (4) above, the appropriate tribunal consider that the dwelling house concerned might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy – (a) which is a periodic tenancy 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 the rent) are the same as those of the tenancy to which the notices relates; and (d) in respect of which the same notices, if any, have been given under any of the grounds 1 to 5 of Schedule 2 to the Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates. (2) In [NAME] a determination under this section, there shall be disregarded – (a) any effect on the cost 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 carried out by a person who at the time it was carried out was the tenant. If the improvement – (i) was carried out otherwise than in pursuance of an obligation to [NAME], or (ii) was carried out pursuant to an obligation to [NAME] being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement, and (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.