Tribunal Adjusts Rent Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AG/MNR/2023/0428

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] 28 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT] [NAME]

1. The rent is: £ 2300.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 25 October 2023

3. Date assured tenancy commenced 25 January 2022

4. Length of the term or rental period 20 Months

5. Allocation of liability for repairs In accordance with agreement

6. Furniture provided by landlord or superior landlord Bed, Wardrobe, Kitchen table.

7. Description of premises A purpose built one bedroom fifth floor flat. Gas is provided within the rental figure.

[NAME] of Decision 8th January 2024

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Case Reference

: LON/OOAG/MNR/2023/0428

Property : [ADDRESS] [POSTCODE]

Tenant

: Mr [APPELLANT] [NAME]

Landlord : [APPELLANT] of Tenants Objection : 4 October 2023

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

Tribunal

: Mr [NAME] of Summary Reasons

: 8 January 2024

_______________________________________________

DECISION

The Tribunal determines a rent of 2300 per calendar month with effect from 25 October 2023. ___________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background 1. On the 12 September 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,800 per month in place of the existing rent of £1,700 per month to take effect from 25 October 2023. The rent set out in the tenancy agreement which commenced on the 25 January 2022 for a term of 20 months £1,700 per month.

2. On the 4 October 2023 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.

Inspection

3. The Tribunal did not inspected the property which was not requested by the parties.

Evidence and Hearing

4. The Tribunal has had consideration to the written submissions provided by the Landlord and tenant together with the comparable evidence.

Determination and Valuation

5. In the first instance the Tribunal determined what rent the landlord could reasonably be expected to obtain for the property in the open market if it were let today in the condition that is considered usual for such an open market letting.

Based upon the evidence provided by the parties together with its expert knowledge, the Tribunal consider that the subject property, if finished to a reasonable standard with modern kitchen and bathroom fittings would be likely to attract a rent let on an assured shorthold tenancy, for £2,400 per month.

Next, we need to adjust that hypothetical rent of £2,400 per month to allow for dated kitchen and bathroom fittings.

Using our own expertise we considered that deductions of £100 should applied in order to take into account the above matters This provides a This reduces the figure to £2,300 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.

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6. The Tribunal determines a rent of £2,300 per calendar month.

Decision

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 £2,300 per calendar month.

8.The Tribunal directs the new rent of £2,300 to take effect on the 25 October 2023. This, being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship.

Chairman: [NAME]: 8th January 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.