Tribunal Determines Fair Market Rent for Rural Norfolk Flat

OUTCOME: Allowed

© CROWN COPYRIGHT 2013 FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CAM/33UF/MDT/2023/0001 Property : [ADDRESS], [POSTCODE] Applicants : [redacted] (Tenants) Representative : None Respondent : [redacted] (Landlord) Representative : None Type of Application : Section 13(4) Housing Act 1988 Tribunal Members : Mr [NAME] and venue of Hearing : 29 [ADDRESS] [POSTCODE] Date of Decision : 29 January 2024

REASONS FOR

DECISION Background 1 The First Tier Tribunal received an application dated 24 November 2023 from the tenants of the Property, regarding a notice of increase of rent, served by the landlord, under S.13 of the Housing Act 1988 (the Act). 2 The notice, dated 7 November 2023, proposed a new rent of £650 per calendar month with effect from and including 31 December 2023. The

2 passing rent was stated in the notice, as £510 per calendar month as determined by the Tribunal in 2022. The original rent at grant, with effect from the 31 March 2021 was £460 per calendar month. 3 The tenancy is an assured shorthold periodic monthly tenancy. A copy of the tenancy and of the landlord’s Notice, were provided. Inspection 4 The Tribunal did not inspect the Property internally but, viewed the exterior from a [ADDRESS] image of the Property from the public road (taken @ June 2023). The Property is part of a converted former detached Edwardian House set in its own grounds on the edge of the rural village of Briston. 5 It appears that the site has been converted into flats and other parts of the former garden and outbuildings converted or newly developed as other residential accommodation. Accommodation at the Property, is on the First Floor level. The new build structures adjacent appear to date from the early 2000’s. 6 The external face of the walls to the former detached house, are brick, with a double pitched main roof over, finished in modern single lap concrete roof tiles covering. The front and rear gardens around the former house are substantially converted into shared gravel parking areas for residents and new sub-divided and created residential buildings, some 15 tenants. The site forms an extensive conversion and new build residential development. 7 The Property accommodation First floor: a bedroom, bathroom WC; living room and kitchen. Windows are double glazed. Space and water heating was oil fired and full. The tenant pays the cost of heating oil and now the cost of water connection and use to the Property. The costs of electrical connection and power used at the flat remain with the landlord and are included in the rent. 8 Other than some built in kitchen units, fridge, (freezer is the tenants), hob, oven dishwasher, washing machine equipment, the Property was let with landlord’s carpets and curtains and other built in cupboards but, no loose furniture from 2021. Representations 9 Directions for the progression of the case were issued by [NAME] on 28 November 2023. Apparently neither party requested a hearing. The determination on the papers was set down for 29 January 2024. 10 The tenant made separate written representations with the application form itself including a completed standard Reply Form. The application form coupled with the detailed handover recorded on grant,

3 contained the essential details of the Property and the terms of the tenancy. 11 The tenant provided summary details of a number of one bedroom flats from around North, West and East Norfolk. The tenants are concerned that the landlords are apparently creating the local market for smaller units of accommodation in this village, based on offerings of space at the site address, rather than a comparison with actual lettings of self contained flats elsewhere. 12 A number of the units at the site, are said to remain vacant. The whole site is in a larger but, relatively remote Norfolk village and arises from the break up and partial redevelopment of a former Edwardian detached house and land into small residential units. 13 The tenant states: “…while the national annual average increase for rents has been 5.3 percent (Sky News article, attachment G), rents in the county appear to have been stable for at least nine months. The tenants provide summary details of some 14 one bedroom flats in Norfolk from Cromer to the north coast (15 miles), to Kings Lynn north east coast (31 miles), to Great Yarmouth to the east coast (42 miles), Swaffham west and inland (27 miles), Norwich south and inland (21 miles). The average of these asking rentals for the period March to December 2023 is said to be £475 pcm. The tenant makes no statement about water and electricity liabilities for each of these proposed lettings elsewhere. The tenant proposed a new rent (including electrical connection and power only) of between £495 to £520 pcm. 14 The Tribunal office appeared to have received representations from the landlord in the form of copies of letting details. These were for 1. A 1 bed flat (apparently a 1900’s street property conversion) based in Kings Lynn asking £420 pcm.

2. A 1 bed flat in Sheringham asking £500 pcm including a lounge/ kitchenette and bathroom with double bedroom. The landlord did not include any details of the other lettings at the site within which the Property is located. 15 The landlord also appeared to provide the result of their using the “Openrent calculator” website. It showed a new rent of between £120 to £690 pcm based on a starting base rent of £460 pcm, as here. The landlord proposed a new final rent (including electrical connection and power) of £650 pcm as in the Form 4 Notice. The Tribunal did not received any separate written statement of the landlord, if filed. 16 It appeared that the parties had now separately agreed that the rent to be paid would still include electricity connection and power. There still appeared to be neither check meter, nor a dedicated head to the Property. However a new water account would now be created for the Property and the new rent would reflect the requirement that the tenants would be billed direct for water connection and supply by the statutory undertaker. The new rent set by the Tribunal in 2022 had been on the basis that the passing rent would include both power and

4 water connections and flow to the Property. It would now be simply for the electrical connection and flow to the Property. 17 The Tribunal is grateful for and has carefully considered such written representations by form, email and letter, as it received, from both parties. Law 18 In accordance with the terms of S.14 of the Act the Tribunal is required to determine the rent at which it considers the property might reasonably be expected to let in the open market, by a willing landlord, under an assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any decrease in value due to the tenant’s failure to comply with any terms of the tenancy. Thus the Property falls to be valued as it stands; but assuming that it is in a reasonable internal decorative condition. Decision 19 Based on the Tribunal’s own general knowledge of market rent levels in rural villages and towns in North Norfolk, it determines that the subject property would let on normal Assured Shorthold Tenancy (AST) terms, for £500 per calendar month, fully fitted and in good order. 20 Although electrical unit power prices had fallen since 2022, standing charges remained high. To the base rent of £500 should be added the value of an electricity connection and power at £50 per calendar month, as a fixed for the rental period pending future review. The new rent inclusive of electrical connection and power would be £550 pcm. 21 The new rent of £550 per calendar month is payable from and including the date set out in the Landlord’s Notice, 31 December 2023. The landlord is free to charge any rent up to and including £550 per calendar month but, not a rent in excess of this figure. [NAME] 29 January 2024 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 either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision.

5 Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013). If the application is not made within the 28-day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit. The application 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 making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).