Tribunal Determines Fair Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00HB/MNR/2018/0069

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 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT]

[COMPANY], 90 [ADDRESS], [POSTCODE]

Tenant [APPELLANT] & [NAME]

1. The rent is: £ 975.00 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 November 2018

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

4. Date assured tenancy commenced 01 November 2017

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 2 bedroom flat within large block

[NAME] of Decision 10 December 2018

© CROWN COPYRIGHT 2018

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00HB/MNR/2018/0069 Property : [ADDRESS] [POSTCODE]

Applicant: [redacted] :

None

Respondent : [redacted] : None Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988 Tribunal Members : Mr [NAME] Mr [NAME] of Inspection : 10th December 2018

Date of Decision

:

10th December 2018

DECISION

CHI/00HB/MNR/2015/0069 2 Summary of Decision

1. On 10th December 2018 the Tribunal determined a market rent of £975 per month to take effect from 1st November 2018.

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 19th September 2018 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £975 per month in place of the existing rent of £920 per month to take effect from 1st November 2018. The notice complied with the legal requirements.

4. On 9th October 2018 the Tribunal received an application from the Tenant under Section 13(4) (a) of the Housing Act 1988.

5. The Tribunal office informed the parties that the Tribunal intended to determine the rent on the basis of an inspection of the property on 10th December 2018 and written representations subject to the parties requesting an oral hearing. No request was made by the parties for a hearing. The Landlord submitted written representations, copies of which were sent to the Tenant.

Inspection

6. An inspection was arranged for 10th December at 11.00 a.m. and both parties were informed of this by letter.

7. The Tribunal duly attended at the property as notified but could not gain access. The Tribunal called the telephone number submitted by the Tenants but could only leave a message. No further contact or explanation was received and no contact was made with the Tribunal office.

8. Accordingly the Tribunal decided they would deal with the case on the papers provided.

9. The Tenant’s states in their application that the property is a first floor flat comprising an open plan living/kitchen room, a mezzanine bedroom, a bathroom and spare room which cannot be used as a bedroom. No reason is given for this.

10. The flat is within a large converted warehouse of similar flats within ½ mile of Bristol city centre.

CHI/00HB/MNR/2015/0069 3 11. The Landlord maintains that the property has two bedrooms and submitted market evidence of similar properties advertised for let between £975 and £1000 per month.

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- (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-

CHI/00HB/MNR/2015/0069 4

(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

12. 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.

13. Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Bristol 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 £975.

14. The Tenants made no representation that the starting date for the new rent specified in the Landlord’s notice would cause them undue hardship.

Determination

15. 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 £975 per month.

16. The Tribunal directed that the new rent of £975 per month should take effect from 1st November 2018 this being the date specified in the notice.

_____________________ Chairman: [NAME]: 10th December 2018

CHI/00HB/MNR/2015/0069 5

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.

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