Tribunal Sets New Market Rent for Assured Tenancy

OUTCOME: Allowed in Part

MR22 First-tier Tribunal – Property Chamber File Ref No. TR/LON/00BG/MNR/2023/0397

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] [NAME]

Landlord Jia Qu Address c/o [APPELLANT], [ADDRESS], London [POSTCODE]

Tenant [NAME] [APPELLANT] & [NAME] [APPELLANT]

1. The rent is: £ 1800.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 20 September 2023

*3. The amount included for services is not applicable 0.00 Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 19th January 2020

6. Length of the term or rental period 24 Months

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord Bed, sofa, dining table, 4 chairs, Wardrobe, white goods in kitchen.

9. Description of premises A purpose built second floor flat forming part of a river frontage block with residents’ gym and concierge service. Accommodation comprises: bedroom, living room, kitchen, bathroom,wc and balcony.

[NAME] of Decision 15th January 2024

1

Case Reference

: LON/OOBG/MNR/2023/0397

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT] & [APPELLANT]

Landlord : Mrs [APPELLANT] c/o [APPELLANT] of Tenants Objection : 18 September 2023

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

Tribunal

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

: 15 January 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £1800 per calendar month with effect from 20 September 2023. ___________________________________

© CROWN COPYRIGHT 2023

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2

SUMMARY REASONS

Background 1. On the 1st August 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,950 per month in place of the existing rent of £1,550 per month to take effect from 20th September 2023. The rent set out in the tenancy agreement which commenced on the 19th January 2020 was £1,500 per month.

2. On the 18th September 2023 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.

Inspection

3. The parties considered this matter could be undertaken without an inspection.

Evidence and Hearing

4. The Tribunal has had consideration to the written submissions provided by the Landlord and tenants together with the comparable evidence provided by each party.

A hearing took place on the 15th January 2024 which was attended by the tenant and the landlord’s husband Mr [APPELLANT[NAME]. During the hearing each party were given the opportunity to give there evidence and explain why the rent should be increased to the levels stipulated by the landlord and the tenant, The tenant stated that he has always paid his rent on time, and has maintained the property to a good standard. He confirmed that the rental figure proposed by the landlord would put a huge strain on his finances and given the current cost of living problems. The landlord stated his mortgage payments and service charges have increased dramatically, although the Tribunal stated this had little to do with rental levels.

Determination and Valuation

5. Having consideration of the comparable evidence, our own expert general knowledge of rental values in the block, we consider that the open market rent for the property if it were in good marketable condition with reasonably modern kitchen and bathroom, double glazing, modern services, carpets and curtains and white goods supplied by the landlord would be £1,800 per month.

6. The Tribunal determines a rent of £1,800 per calendar month.

Decision

3 7. The Tribunal therefore determined 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 was £1,800 per calendar month.

8.The Tribunal directs the new rent of £1,800 to take effect on the 20 September 2023. This, being the date set out in the Landlord’s Notice of Increase and the Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would not cause the tenant undue hardship.

Chairman: [NAME]: 15th January 2023

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.

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference :

LON/OOBG/MNR/2023/0397

Property : [ADDRESS] [POSTCODE] Applicant: [redacted] : None Respondent : [redacted] Representative : [RESPONDENT] of application : Section 13(4) Housing Act 1988 Tribunal members : Mr [NAME] [NAME] : Face to Face Hearing Date of Extended Reasons : January 2024

DECISION

2 Decision of the tribunal (1) The Tribunal determines that the rent that the property in its current condition as at the 12th May 2023 might reasonably be expected to achieve in the open market under an assured tenancy is £1,800 per month Background 1. The tenant has lived in the property as assured periodic tenants since 19th January 2020 when the Assured Tenancy Agreement commenced for a term of 24 months.

2. On the 1st August 2023 the landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £1,550 per month to £1,950 per month, being an increase of £400 effective from 20th September 2023.

3. By an application dated 18th September 2023, the tenant referred that notice to the Tribunal for a determination of the market rent. The Tribunal issued Directions for the conduct of the matter on 27th October 2023.

4. The matter was set down for a face-to-face hearing at [ADDRESS], London WC1E 7lr.The Tribunal issued its decision on the 15th January 2024 with a Summary of Reasons. Following receipt of an email dated 17th January 2024 from the tenant a request was made for Extended Reasons in this matter. The Evidence and the Hearing 5. The Tribunal has before it, a bundle of evidence which includes a background to the case, the application, the directions, the tenancy agreement, completed rent appeal statements on behalf of the landlord and the tenant together with photographic evidence and floor plan. Both the tenant and the landlord submitted a list of comparable evidence which we consider below.

6. The hearing took place on the 15th January 2024 which was attended by the landlord’s husband and the tenant. During the hearing, each party were given the opportunity to explain their cases. The Tribunal considered both sets of comparable evidence and on balance preferred the landlord’s evidence. The comparables provided were for flats in same building.

3 7. The accommodation comprises: 2 bedrooms, living room, kitchen, bathroom and balcony. There is central heating and double-glazed windows. There is allocated parking. The flat is located on the second floor and has 24-hour concierge and gym facilities. The block is located on the river with direct river views. The Law 1. The rules governing a determination are set out in section 14 of the Housing Act 1988. In particular, the Tribunal is to determine the rent at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy. In the absence of any evidence to the contrary, the Tribunal has proceeded on the basis that the landlord is responsible for repairs to the structure, exterior and any installations pursuant to section 11 of the Landlord and Tenant Act 1985 and the tenant for interior decoration.

The valuation 9. Having carefully considered all the evidence the Tribunal considers that the rent that would be achieved in good condition with reasonably modern kitchen and bathroom fittings, modern services, carpets, curtains and white goods supplied by the landlord would be £1,800 per month. This figure is based upon the comparable evidence provided by the landlord and the Tribunal’s professional judgement and experience. 11 The average rent for rental properties in the Docklands area has increased every quarter since the end of 2019, according to the online property portal Rightmove. The rent increases are due to not enough properties coming to the market to meet demand and the number of homes for rent is 46% below 2019 levels. This puts this decision in context with the current rental market.

11. The Tribunal has been provided with a copy of the tenancy agreement, which incorporates the usual repair obligations.

12. The Tribunal received no evidence of hardship and, therefore, the rent determined by the tribunal is to take effect from 20th September 2023.

4

[NAME] 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 a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. 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).