Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/29UL/MNR/2021/0035

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] Mr [RESPONDENT]

Landlord Mr [RESPONDENT] 4 [ADDRESS], [POSTCODE]

Tenant Miss [APPELLANT]

1. The rent is: £ 480.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 03 April 2021

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

4. Date assured tenancy commenced 03 October 2016

5. Length of the term or rental period Monthly

6. Allocation of liability for repairs Landlord

7. Furniture provided by landlord or superior landlord None

8. Description of premises Top floor self-contained flat within a 5-storey building. One bedroom, Living Room/Kitchen, Bathroom with WC.

[NAME] of Decision 27 May 2021

© CROWN COPYRIGHT 2021

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/29UL/MNR/2021/0035 Property :

[ADDRESS] [POSTCODE]

Tenant : Ms [COUNSEL] [NAME] : None Landlord : Mr [COUNSEL] : Countrywide Residential Lettings (Embassy Management) Type of Application :

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

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

Date of Decision

:

27th May 2021

DECISION

CHI/29UL/MNR/2021/0035

2 Summary of Decision

1. On 27th May 2021 the Tribunal determined a market rent of £480 per month to take effect from 3rd April 2021.

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 15th February 2021 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £480 per month in place of the existing rent of £450 per month to take effect from 3rd April 2021. The notice complied with the legal requirements.

4. On 29th March 2021 the Tribunal received an application from the Tenant under Section 13(4) (a) of the Housing Act 1988.

5. The Coronavirus pandemic and considerations of health have caused a suspension of inspections and Tribunal hearings in person until further notice.

6. The Tribunal issued directions on 21st April 2021 informing the parties that 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 which had been copied to the other party. A Tribunal was convened on 27th May 2021 using video conferencing.

The property

8. From the information given in the papers and available on the internet, the property comprises a self-contained top-floor flat within a five-storey house. The property is close to the centre of Folkestone.

9. The accommodation is described as including a Living Room/Kitchen, Bedroom and Bathroom with WC and the occupier has use of a shared garden. There is no off-street parking.

10. The flat has a central heating system but no double glazing. Carpets are included but the Tenant provides curtains and white goods.

11. The Tenant first took occupation from 3rd October 2016 at an initial rent of £450 per month for a six-month tenancy.

CHI/29UL/MNR/2021/0035

3 Submissions

12. The Tenant states that she has installed some quality units within the Kitchen and refers to an unkept garden, dirty communal areas with some broken light bulbs, draughty windows, a dated Bathroom, mould within the corners of rooms, out of date fire extinguishers and some debris falling from upper floors.

13. The Landlord’s Agent provided marketing material for a number of flats ranging from £510 per month to £650 per month and states that the property is in a popular area and informs the Tribunal that Folkestone has a mainline Railway Station with direct access to London.

14. The Agent has been unable to make an internal inspection due to Covid restrictions and informs the Tribunal that as the property now has a full Fire Alarm system installed extinguishers are not needed.

15. Neither party provided any photographs in support of their evidence.

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 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-

CHI/29UL/MNR/2021/0035

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 joint tenants, 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

16. 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.

17. 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.

18. Having carefully considered the representations from the parties and associated correspondence, and using its own judgement and knowledge of rental values in the Folkestone area, 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 £525 per month.

CHI/29UL/MNR/2021/0035

5 19. However, from the written submissions it is clear that the property is not let in such condition and a number of adjustments to this open market rent should be made. These adjustments should include the Tenant’s provision of curtains and white goods, the dated Bathroom and the stated general decorative order with some mould growth.

20. Using its experience the Tribunal decided that the following adjustments should be made:

Tenant’s provision of white goods £15 Tenant’s provision of curtains £10 Dated bathroom £10 General decorative order and some mould growth £10

____ TOTAL £45

21. 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

22. 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 £480 per month.

23. The Tribunal directed that the new rent of £480 per month should take effect from 3rd April 2021 this being the date in the original 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.

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6

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.