Tribunal Adjusts Rent for Assured Tenancy Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00HP/MNR/2023/0069

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 6 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] Mr [RESPONDENT]

[NAME] c/o [NAME], London, [POSTCODE]

Tenant Miss [APPELLANT]

1. The rent is: £ 815.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 01 May 2023

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

4. Date assured tenancy commenced 18 February 1956

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord

8. Description of premises 3 bedroom end terrace house.

[NAME] of Decision 27 June 2023

© CROWN COPYRIGHT 2023

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00HP/MNR/2023/0069 Property : 6 [ADDRESS] [POSTCODE]

Applicant Tenant : Ms [COUNSEL] :

None

Respondent Landlord : [NAME] : [COMPANY] of Application :

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

Tribunal Members : Mr [NAME] R [NAME] Mr [NAME] Mr [NAME] I [NAME] of Inspection : None. Paper determination Date of Decision :

27th January 2023

DECISION

CHI/00HP/MNR/2023/0069

2 Summary of Decision 1. On 27th June 2023 the Tribunal determined a market rent of £815 per month to take effect from 1st May 2023.

Background 2. The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.

3. On 14th March 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £900 per month in place of the existing rent of £470 per month to take effect from 1st May 2023. The notice complied with the legal requirements.

4. On 21st March 2023 the Tenant appealed to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal does not consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

6. The Tribunal issued directions on 24th May 2023 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos.

7. Both parties submitted papers by the specified dates very clearly setting out their respective cases. The papers were also copied to the other party.

8. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case 27th June 2023 based on the written representations received. The Property 9. From the information given in the papers and available on the internet the property comprises an end-terraced house in an area of similar style properties about 5 miles northeast of the centre of Poole and 5 miles northwest of the centre of Bournemouth.

10. The house is said to date from the 1950’s with accommodation comprising a Living Room and Kitchen at ground level, and 3 Bedrooms and a Bathroom at first floor level. There are gardens front and rear but no parking space. The house is approached by a stepped pathway. Submissions 11. The initial tenancy began on 6th February 1956 when the property was first built and let to Mr [APPELLANT]. Ms [APPELLANT] is the present Tenant by succession.

CHI/00HP/MNR/2023/0069

3 12. A letter from the [NAME] dated 10th January 1984 states that the houses in [ADDRESS] were built to house key workers for a nearby factory and that they are of sub-standard construction. 13. [NAME] provided helpful photographs of the property and states that double glazing was installed in 2022, the property was rewired in 2022, that there is no central heating, white goods, carpets or curtains provided by the Landlord. 14. [NAME] also refers to 2 other houses in [ADDRESS] which had previously been let at £830 and £920 per month, but that both had now been sold and states that she would have expected rents to rise in line with the average increase across the UK. The Agent also provided a floorplan of a neighbouring “identical property” which purported to include a Utility. Neither party referred specifically to a Utility in the property.

15. The Tenant states that the bathroom and kitchen fittings are dated and states that a similar property has been let recently for £650 per month but provided no further details.

16. There is no Energy Performance Rating for the property. The Law S14 Determination of Rent by First-tier Tribunal

(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a [NAME] 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 notice relates; and (d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates.

(2) In making a determination under this section, there shall be disregarded-

(a) any effect on the rent attributable to the granting of a tenancy to a [NAME]; (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-

CHI/00HP/MNR/2023/0069

4 (i) was carried out otherwise than in pursuance of an obligation to his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord 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.

(3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates, or the following conditions are satisfied, namely-

(a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling- house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of [NAME], at least one of them) did not quit.

(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.

Consideration and Valuation 17. The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.

18. The Tribunal is required to determine the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under an assured tenancy. The personal circumstances of the Tenant are not relevant to this issue.

19. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Poole and Bournemouth the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £1,200 per month.

20. However, the property is not let in such a condition as would command this full rent and the Tribunal needs to make some adjustment to this full rent to allow for the condition of the property and the letting terms.

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5 21. In particular adjustments need to be made to reflect the dated kitchen and bathroom, the lack of central heating and the items provided the Tenant.

22. Using its experience the Tribunal decided that the following adjustments should be made: Tenant’s provision of white goods £30 Tenant’s provision of carpets and curtains £50 Tenant’s provision of curtains £20 Dated kitchen £100 Dated bathroom £50 Lack of central heating £120 Tenant’s responsibility for internal decoration £15

____ TOTAL per month £385

23. The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination 24. The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a [NAME] under the terms of this assured tenancy was £815 per month.

25. The Tribunal directed that the new rent of £815 per month should take effect from 1st May 2023, this being the date specified in the Notice.

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case. Where possible you should send your application for permission to appeal by email to [EMAIL] as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.