Tribunal Sets £1,090/Month Rent for Assured Tenancy in Hove

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00ML/MNR/2019/0025

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 Flat 3 (Top Floor Flat), 74 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord [RESPONDENT] c/o [NAME], 204 [ADDRESS], [POSTCODE]

Tenant Miss [APPELLANT] [NAME]

1. The rent is: £ 1090.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 06 April 2019

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

4. Date assured tenancy commenced 6 April 2018

5. Length of the term or rental period 6 months

6. Allocation of liability for repairs Tenant – keep interior same condition as at start of tenancy Landlord – as per section 11 of the Landlord & Tenant Act 1985. Central heating and electrical appliances

7. Furniture provided by landlord or superior landlord As per inventory

8. Description of premises Self-contained flat on top floor of end of terrace house. Upper level – living room/kitchen area, bedroom, bathroom/wc Lower level – bedroom with en-suite shower and wc

[NAME] of Decision 20 May 2019

© CROWN COPYRIGHT 2019

Case Reference : CHI/00ML/MNR/2019/0025

Property : [ADDRESS] [POSTCODE]

Tenant : Miss [APPELLANT]. [APPELLANT]

Landlord : [APPELLANT].

Represented by : [NAME] of Application : Rent determination in accordance with Section 14 Housing Act 1988 (as amended)

Tribunal Members : [NAME] (Surveyor/Chairman)

[NAME] (Valuer Member)

Date of Inspection : Monday 20th May 2019

No Hearing - paper determination

Date of Decision : Monday 20th May 2019

______________________________________________________

DECISION AND REASONS _________________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 Background 1. On 27th February 2019 the Landlord served a notice under Section 13(2) of the Housing Act 1988 (as amended) which proposed a new rent of £1,090 per month in place of the existing rent of £995 per month to take effect from 6th April 2019.

2. The Tribunal received an application dated 22nd March 2019 from the Tenant under Section 13(4) (a) of the Housing Act 1988. The Application states that the tenancy began on 6th April 2018 and that no services or furniture are provided by the landlord.

3. Directions for the conduct of the matter were issued by the Tribunal Office on 29th March 2019 and, amongst other things, the parties were advised that the determination will be made on the written representations unless a request for an oral hearing is made within fourteen days 4. Neither party made a request for an oral hearing and the matter was determined on the basis of a paper determination. Inspection 5. The Tribunal Members inspected the property on Monday 20th May 2019 in the company of the tenant, Miss [APPELLANT]. The landlord had been informed of the inspection but was not present or represented.

6. The property is a self-contained flat on the top floor of an end of terrace house, probably built about 1890 and subsequently converted into flats. There are no gardens or off-road parking facilities and parking on nearby roads is regulated and restricted. The property has frontage to a busy local traffic route but is within easy reach of bus services, shopping facilities and Hove main line railway station.

7. The main roof is not visible from ground level. The main walls are probably of solid construction with rendered and painted elevations. Windows are replacement double glazed, casement type. The outside of the building is generally in need of maintenance and repair including numerous cracks to upper front rendering

3 8. The split-level accommodation comprises landing, living room/kitchen area, bedroom, bathroom/WC on the upper level. Stairs lead down from the landing to a further bedroom with a small en-suite shower and WC.

9. Central heating is provided by a gas fired boiler in the bathroom which feeds radiators in the main rooms.

10. The landlord has supplied floor coverings, curtains and white goods.

11. The Tribunal has been supplied with a copy of the Tenancy Agreement which is for a term of 6 months from April 6th 2018. The Tribunal noted the following provisions:

(i) The tenant is required to preserve the interior and the contents of the

property in good order and in clean condition as at the

commencement of the tenancy, fair wear and tear due to reasonable

and normal use and damage by accidental fire and other insured risks

excepted….

(i) The landlord must:

(a) carry out those repairs to the property the liability for

which is imposed upon the landlord by Section 11 the

Landlord and Tenant Act 1985 as amended by Section

116 of the Housing Act 1988. This liability obliges the

landlord to repair the structure of the premises and

exterior (including drains, gutters and pipes) and

certain installations for the supply of water electricity

and sanitation (including basins sinks baths and

sanitary conveniences and for space heating or water

but not other fixtures fittings and appliances for

making use of the supply of water and electricity.)

(b) Put and keep in repair and proper working order the

central heating installation electrical appliances and

other equipment provided by the landlord for the use

of the tenant…

4 Evidence and representations Tenant 12. It is pertinent to extract the following verbatim handwritten comments from Question 8 (Repairs) on the application form:

(a) Landlord is so far refusing to fix.

(b) Carpet is cigarette burnt (previous tenants).

(c) Damp in child’s bedroom and landing, kitchen units not secure

in places and boiler is very old. Plumber advised landlord to replace

but he has not.

The Tribunal notes that the tenant has written the words “Tribunal visit to flat and oral hearing please”. However, there has been no application for an oral hearing following the Directions issued on 29 March 2019.

13. In addition, the bundle includes a copy of a letter dated April 3rd 2019 from the tenant to the [NAME]. Amongst other things, it states that if the carpets, kitchen, boiler and damp issues were addressed, the amount of £1,050 per month would be market rent 14. In support of this viewpoint, the tenant provides the following examples of asking rents for “properties with new, undamaged carpets, quality fittings and amenities, of similar size and in more desirable locations”:

[ADDRESS], Hove

“Flat across two levels with two double bedrooms and large open plan living room. More storage, nicer finish on kitchen, no damage to carpets and closer to Hove train station and the sea.” It is not stated whether or not central heating is installed. The asking rent is £950 per month.

5

St. Aubyns, Hove

“Two bedroom flat with a double and single bedroom, beautifully presented with lovely paintwork, carpets and finish on the kitchen and right on the seafront.” It is not stated whether or not central heating is installed. The asking rent is £950 per month.

[ADDRESS], Hove

“Two double bedrooms with spacious living room, separate kitchen, no damage to carpets, closer to Hove station.” It is not stated whether or not central heating is installed. The asking rent is £995 per month.

[ADDRESS], Hove

“Two double bedrooms, newly decorated, brand new carpets, spacious living room, separate modern kitchen, beautifully modern bathroom, communal garden, fitted wardrobes in master bedroom, closer to Hove station and sea front.” It is not stated whether or not central heating is installed. The asking rent is £1,100 per month. 15. Further comments are made by the tenant as follows:

(a) … the landlord has not carried out all the repairs that he is

responsible for

(b) I have had to contact the local Council about the ongoing damp and

mould issue.

(c) The carpet is very aged in all rooms except for my bedroom. There

are four cigarette burns on the carpet in the lounge, as well as large

black stains elsewhere – while this is arguably cosmetic.

(d) The floor in the kitchen is coming away at the sides, the cupboards

regularly fall off the hinges… Panels by the door are loose.

(e) The boiler is ancient. A plumber who came round when there was

an issue with it where I had no heating or hot water said he would

6

advise [NAME] it be replaced[sic] but nothing has been done.

(f) The paintwork is shoddy throughout, e.g. on walls, banister, doors.

The hooks on my door are mismatched. Landlord 16. The landlord’s agent, [NAME], wrote a letter dated 4th April 2019 in support of the proposed rent increase. It included copies of numerous documents, including:

(i) The inventory of the tenancy.

(ii) Comparable[sic] of local properties, all with higher rental amounts

(iii) Invoices pertaining to recent exterior and interior works carried out

which the tenant has had complaints about

(iv) Various email trails between the Managing Agents and the

Tenant.

The email trails have been enclosed to highlight that the landlord’s agent has been transparent at all times and has been liaising with the landlord to satisfy the tenant’s various demands over the last year in the tenancy.

Particulars of three comparable properties are provided but it is not stated whether or not the asking rent was achieved.

[ADDRESS], Hove

This is a 2 bedroom converted flat with en suite bathroom to the main bedroom. It is not stated whether or not central heating is installed. The asking rent is £1,200 pcm.

[ADDRESS], Hove

This is a purpose built 2 bedroom flat on the top floor of fairly modern

7 block. It is not stated whether or not central heating is installed. The asking rent is £1,090 pcm.

St. [ADDRESS], Hove

This is a converted flat but no further information is provided. The asking rent is £1,150 pcm

The above is a summary of the main points made by the parties and the tribunal has read and considered the whole of the supplied documents. 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

8 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- (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 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.

9 18. Having regard to the above, the tribunal determined what rent the landlord could reasonably be expected to obtain for the property in the open market if it were let today on the terms and in the condition that is considered usual for such an open market letting. The Tribunal considered the comparable provided by the parties and also relied on its own knowledge and experience of lettings of similar properties and determined that the appropriate should be £1,090 per month.

19. The tribunal had careful regard to all the written submissions and they are reflected in the above rent. No evidence has been supplied to confirm that the boiler needs replacement. A current safety certificate has been issued and the tenant advised that the proposals by the plumber were recommendations rather than conditions for the issue of a certificate. This is an old building and the flat is located on the top floor. It is apparent that there have been ongoing problems with dampness but work has been carried out by the landlord and, at the time of the inspection by the tribunal, no significant dampness was noted. There are cigarette burns in the living room carpet but these are noted on the inventory which was prepared when the tenancy began. At some time in recent years, the flat has been modernised to a reasonable standard. Although the accommodation is on two levels, it has the advantage of a shower/WC off the main bedroom in addition to the bathroom on the top landing. Determination 20. 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 is £1,090 per month.

21. Section 14(7) of the Act provides that the starting date for any rent determined by the tribunal is either the date agreed by the parties, the date specified in the notice or, if it appears to the Tribunal that there would be undue hardship, any date directed by the tribunal, but no later than the date that the rent is determined. The tenant made no representations in respect of hardship.

Accordingly, the Tribunal directs that the new rent of £1,090 per

10 month will take effect on 6th April 2019 being the date specified in the Landlord’s notice.

Chairman: [NAME]:

Monday 20th May 2019 Appeals 22. A person wishing to appeal this decision to the Upper Tribunal ([NAME]) 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.

23. 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.

24. 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 the time limit, or not to allow the application for permission to appeal to proceed.

25. 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. Any appeal in respect of the Housing Act 1988 should be on a point of law.

26. If the First-tier Tribunal refuses permission to appeal, in accordance with section 11 of the Tribunals, Courts and Enforcement Act 2007, and Rule 21 of the Tribunal Procedure (Upper Tribunal) ([NAME]) Rules 2010, the [NAME] may make a further application for permission to appeal to the Upper Tribunal ([NAME]). Such application must be made in writing and received by the Upper Tribunal ([NAME]) no later than 14 days after the date on which the First-tier Tribunal sent notice of this refusal to the party applying for permission.