Tribunal Adjusts Rent for Assured Tenancy Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. HAV/21UC/MNR/2024/0503

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] Mr [RESPONDENT]

Landlord [COMPANY], [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 620.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

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

3. The amount included for services is not applicable n/a Per n/a

4. Date assured tenancy commenced 1 April 2016

5. Length of the term or rental period 12 Months: Statutory Periodic Tenancy

6. Allocation of liability for repairs In accordance with agreement

7. Furniture provided by landlord or superior landlord None

8. Description of premises A purpose built first floor flat forming part of a four storey block with brick and render elevations under a mansard flat roof. Accommodation comprises: one bedroom, living room, kitchen, bathroom.

[NAME] of Decision 17 October 2024

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : HAV/21UC/MNR/2024/0503 Property : [ADDRESS], [POSTCODE] Applicant : [redacted] : None Respondent: [redacted]

[COMPANY] : None Type of [NAME] : Section 13(4) Housing Act 1988 Tribunal members : Mr [NAME] Mr [NAME] : Paper determination with inspection Date of Decision : 17th October 2024

DECISION

2

Decision of the tribunal (1) The Tribunal determines that the rent that the property in its current condition as at the 1st September 2024 might reasonably be expected to achieve in the open market under an assured tenancy is £620 per month. Background 1. The tenant has lived in the property under an assured periodic tenancy which commenced on the 1st April 2016 for a term of 12 months.

2. On the 25 July 2024 the landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £578 per month to £720, being an increase of £142 (24%) effective from 1 September 2024.

3. By an [NAME] dated 14th August 2024, the tenant referred that notice to the Tribunal for a determination of the market rent. The Tribunal issued Directions for the conduct of the matter on 3rd August 2024.

4. On the 26th September 2024 the landlord submitted a Case Management [NAME] to the Tribunal requesting an [NAME] to join the proceedings and extend the deadline in accordance with the directions. The Tribunal accepted this request as it was considered there was no prejudice to the tenant.

5. The Tribunal considered the matter suitable for a determination on the papers and therefore a hearing was not necessary. The parties did not disagree with this arrangement. The Evidence 6. The Tribunal has before it a bundle of evidence which includes a background to the case, the [NAME], the directions, completed rent appeal statements on behalf of the landlord and tenant, a witness statement from the tenant including helpful photographs and tenancy agreement. Each party submitted details of comparable rental evidence. Inspection 7. The Tribunal inspected the property on the morning of 17th September 2024 in the presence of the tenant. The property is a purpose built self- contained first floor flat which forms part of a four storey block with mansard flat roof and brick and render elevations. The block has

3 commercial premises on the ground floor. There are basic communal areas with a lift and staircase to upper floors. The block comprises 12 flats with secure underground allocated parking in the basement. The block is located in a mixed commercial and residential area convenient to the town centre and sea front.

8. The small accommodation comprises: one bedroom, living room, kitchen, bathroom and parking space. The windows are original stained softwood single glazed units with secondary glazing installed by the landlord. Heating is provided by basic electric storage heaters. The Law 9. 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 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 10. Having carefully considered all the evidence the Tribunal considers that the rent that would be achieved in a good marketable condition with reasonably modern kitchen and bathroom fittings, modern services and heating system, carpets, curtains and white goods supplied by the landlord would be £775 per month. This figure is based upon the Tribunal’s professional judgement and experience of rental values in the Eastbourne area together with the comparable evidence presented by the parties.

11. The Tribunal now needs to adjust this rent to allow for the internal condition of the property, the kitchen and bathroom fittings are some 35 years old, there are no white goods, carpets, curtains provided by the landlord, the heating system is extremely basic and the windows are suffering from rot infestation and difficult to open. The Tribunal has considered very carefully the tenant’s submissions. Using its own expertise upon the inspection considers that a deduction of £155 (20%) should be applied. This reduces the rental figure to £620 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.

4 12 The average rent for rental properties in the Eastbourne area has increased every quarter since the end of 2020, according to the online property portal Rightmove. The rent increases are due to restricted supply of properties coming to the market to meet ever increasing demand and the number of homes for rent is 46 per cent below 2020 levels. This puts this decision in context with the current rental market.

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).