Tribunal Sets Market Rent of £920 for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/45UH/MNR/2024/0130

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] Miss [RESPONDENT] [NAME] [RESPONDENT] c/o [APPELLANT], 230 [ADDRESS], [POSTCODE]

Tenant Mr [APPELLANT]

1. The rent is: £ 920.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 02 June 2024

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

4. Date assured tenancy commenced 02 December 2021

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 One bedroom ground floor flat.

[NAME] of Decision 3 July 2024

© CROWN COPYRIGHT 2024

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/45UH/MNR/2024/0130 Property : [ADDRESS] [POSTCODE]

Applicant Tenant : Mr [COUNSEL] :

None

Respondent Landlord : [RESPONDENT] : [COMPANY] of Application :

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

Tribunal Members : Mr [NAME] Ms [NAME] of Inspection : None. Paper determination Date of Decision :

3rd July 2024

DECISION

CHI/45UH/MNR/2024/0130

2

Summary of Decision 1. On 3rd July 2024 the Tribunal determined a market rent of £920 per month to take effect from 2nd June 2024. 2. This rent is higher than the amount proposed by [NAME]. The Landlord is not obliged to charge this higher amount.

Background 3. 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.

4. On 22nd April 2024 [NAME] served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £785 per month in place of the existing rent of £625 per month to take effect from 2nd June 2024. The notice complied with the legal requirements.

5. On 15th May 2024 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.

6. The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.

7. The Tribunal issued directions on 24th May 2024 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos. 8. [NAME] made a submission to the Tribunal which was copied to the Tenant. The Tenant made no submission other than the original application.

9. Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 3rd July 2024 based on the written representations received.

10. These reasons address in summary form the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application.

CHI/45UH/MNR/2024/0130

3 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 willing landlord 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-

(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

CHI/45UH/MNR/2024/0130

4 (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. The Property 11. From the information given in the papers and available on the internet, the property comprises a self-contained ground floor flat within a building containing 21 one bedroom flats. The building was formerly used as offices but was converted to residential accommodation in 2021.

12. The accommodation includes a Living Room/Kitchen, Bedroom and Bathroom with WC. Outside there are shared grounds and permit parking.

13. The Energy Performance Rating is ‘B’ and the EPC certificate states that the property is 38 sq. metres, has double glazed windows and that the heating is from a shared community scheme.

14. The property is situated in a mainly residential area, with some commercial uses in the road, within level walking distance of the town centre and approximately 250 metres from beaches and associated facilities. Submissions 15. The initial tenancy began on 2nd December 2021. 16. [NAME] states that a fridge, washing machine and curtains are not included in the letting – only a cooker and curtain poles. The accommodation was let newly converted at the start of the tenancy.

17. The Agent states that rents for 1-bedroom flats in the general area ‘around £1,000 per month’. Consideration and Valuation 18. 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.

19. 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 willing Landlord under an assured tenancy. The personal circumstances of the Parties are not relevant to this issue.

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

CHI/45UH/MNR/2024/0130

5 Worthing, and looking at comparable properties advertised to rent 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 £950 per month.

21. However, the property is not let on the basis that is normally required to command such a rent with the Landlord only providing a cooker in the Kitchen. The Tribunal decided that the rent should be reduced by £20 per month to reflect the fact that the Tenant provides a fridge and washing machine and a further £10 per month to reflect the Tenant’s provision of curtains. 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 willing Landlord under the terms of the assured tenancy was £920 per month.

23. The Tribunal directed that the new rent of £920 per month should take effect from 2nd June 2024, this being the date specified in the 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.

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.