Tribunal Sets Fair Market Rent for Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AK/MNR/2024/0607

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 37 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord [RESPONDENT] [ADDRESS] [POSTCODE].

Tenant Mr [APPELLANT]

1. The rent is: £ 2,000 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 3 January 2025

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 3 September 2019

6. Length of the term or rental period Monthly Assured Periodic Tenancy

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A 1930s built two storey mid terrace house. Accommodation comprises: three bedrooms, 2 living rooms, kitchen, bathroom/WC, rear garden.

[NAME] of Decision 24 February 2025

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Case Reference

: LON/OOAH/MNR/2024/0607

Property : 37 [ADDRESS], [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [APPELLANT] [NAME] [APPELLANT] of Objection : 20 November 2024

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

Tribunal Members : Mr [NAME] Mr [NAME] of Summary Reasons

: 24 February 2025

_______________________________________________

DECISION

The Tribunal determines a rent of £2,000 per calendar Month with effect from 3 January 2025 ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 © CROWN COPYRIGHT 2023

SUMMARY REASONS

Background

1. On the 11 November 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,500 per month in place of the existing rent of £2,000 per month to take effect from 3 January 2025.

2. The Tenants application is dated the 20 November 2024, under Section 13(4)(a) of the Housing Act 1988. The Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

Evidence

4. The Tribunal has consideration of the comprehensive written submissions provided by the Tenant and the Landlord together with a photograph, the tenancy agreement and 7 letting agents’ details of comparable evidence from the Landlord which, as the Landlord noted, ranged from £2,000- £3,000 per month.

The Inspection

5. The Tribunal members inspected the property on the 24 February 2025 in the presence of the tenant and his family. The Landlord was not present. The property is a 1930’s mid-terrace three-bedroom house located in an established road with rear garden.

Determination and Valuation

6. Firstly, having consideration of our expert, general knowledge of rental values in the Thornton Heath area, The Tribunal considers that the open market rent for the property if it were in good marketable condition with reasonably modern kitchen and bathroom, modern services, carpets and curtains and white goods supplied by the landlord would be £2,3o0 per month.

7. The Tribunal now needs to adjust this rent to allow for the dated fittings, no white goods or curtains provided by the Landlord, defective window units and stained and poor-quality carpets. Using its own expertise the Tribunal considers that a deduction of £300 (approximately 13%) should be applied. This reduces the rental figure to £2,000 per month.

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Decision

8. The Tribunal therefore determines that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy in its current condition is £2,000 per calendar month.

8. The Tribunal directs the new rent of £2,000 per month to take effect on the 3 January 2025. This being the date set out in the Landlord’s Notice of Increase.

Chairman: [NAME]: 24 February 2025

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA.