Tribunal Sets New Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00BD/MNR/2024/0335

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] O Miller

Landlord H [RESPONDENT] 325-327 [ADDRESS], [POSTCODE]

Tenant [NAME]

1. The rent is: £ 1766.25 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 4 April 2025

*3. The amount included for services is/is

negligible/not applicable n/a Per n/a

*4. Service charges are variable and are not included

5. Date assured tenancy commenced Assured tenancy by succession

6. Length of the term or rental period periodic

7. Allocation of liability for repairs Landlord external repairs terms carried over from regulated tenancy.

8. Furniture provided by landlord or superior landlord n/a

9. Description of premises 1st and 2nd floor maisonette three bedrooms, one living room, one bathroom, and a kitchen

[NAME] of Decision 4 April 2025

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Case Reference

: FR/LON/00BD/MNR/2024/0335

Property : [ADDRESS] [POSTCODE]

Tenant

: [APPELLANT] aided by

[APPELLANT], represented

by [RESPONDENT]

Landlord : [RESPONDENT] represented by [NAME] of Objection : 25 June 2024

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

Tribunal

: [NAME] O Miller

Date of Hearing : 14 November 2024 Date of Stay of decision: 22 January 2025 Date of Inspection : 4 April 2025 Date of Full Decision : 4 April 2025.

© CROWN COPYRIGHT 2025

_______________________________________________ FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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DECISION

The Tribunal determines a rent of £ 1766.25 per calendar month with effect from 4 April 2025 ____________________________________

FULL REASONS

Procedural

1. The tribunal heard the case at a face-to-face hearing on the 14 November 2024. Subsequently the landlord’s representative applied for permission to appeal the decision on the grounds that the tribunal had erred on the basis it had not taken into account an outside space of the property. On the 22 January 2025 the tribunal issued a stay of decision pending the clarification of the facts through inspection. The inspection was carried out on 4 April 2025 and the rent subsequently determined.

Preliminary

2.The Tribunal thanks all parties for their clear and detailed submissions.

Background

3 On 13 May 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2450.00 per month in place of the existing rent of £1086.00 per month to take effect from 1 July 2024.

4. An application dated 25 June 2024 was made 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. The Tenant’s referral was received by the Tribunal on 25 June 2024.

Inspection

5. The Tribunal did not inspect the property prior to the hearing. From the Application Form, the property is a maisonette on first and second floor, comprising three bedrooms, one living room, one bathroom, and a kitchen.

Hearing, evidence and submissions

6. The Tribunal has considered the written submissions, oral submissions, witness statements, made at the hearing, provided by the parties, and the tribunal has had the benefit of an inspection.

3 Tenant submissions

7. At the hearing the Tenant described that the property had been in their families' hands, since 1964, and that current tenant succeeded the tenancy by following the passing of their mother. The property was located in a purpose- built block with commercial units on the ground floor. The commercial units are mixed in nature both restaurant and non-restaurant use.

8. Included in the evidence was the Death Certificate of [NAME] which certified death on 3rd October 2011.

9. The tribunal heard that the flat itself has three bedrooms, a living room and a kitchen and bathroom. At the point of succession, the kitchen and bathroom were dated and have subsequently been improved by the current tenant. There is no central heating in the flat, but one gas fire in the living room. The windows are aluminium double-glazed dating from before the succession but of poor quality compared with modern double glazing. The Landlord had no records of the interior of the property and accepted at the hearing the assertions of the tenant as to its condition and specification.

10. In terms of value the tenant felt the property was not in a condition to command the full rent asked by the landlord.

11. The Tenant also made an application for the effective date of any increase, if there was one, to be from the date of the tribunal's decision rather than the effective date of increase specified in the notice. This was made on the basis that the tenant and his wife were pensioners and did not have sufficient resources to meet any back dated rent increase.

Landlord submissions

12. The Landlord represented by [NAME] presented the Landlord's case with the benefit of a witness statement dated 31 October 2024 from the [RESPONDENT] a director of the Landlord.

13. At the start of the submission Mr. [RESPONDENT] for the Landlord noted that the assured tenancy had started towards the end of the 1990s, but that there had not been any rental increase from that date, a period of time that was at least 25 years.

14. The witness statement set out three rental valuations carried out by three separate agents. Providing a range of rental valuations from £2450.00 to £2900.00

15. The witness statement also included a number of properties available to let these ranged in rental level from £2500.00 to £2900.00 per month. Additionally, within the witness statement there were details of [ADDRESS], a three-bedroom flat in the same block, which was £2750 per month. This comparable had an outside decked space.

4 16. The landlord’s witness statement concluded that £2450.oo per month was reasonable for the property.

17. Upon questioning by the Tenants representative, it was agreed that the agents who performed the valuation would not have the benefit of an internal inspection but would have been aware of the general condition.

Inspection of 4 April 2024 and subsequent deliberations

18. The rent to be determined is that for an assured tenancy. The assured tenancy was the outcome of a succession from a regulated tenancy which dated from 1965 held by the current tenant's mother [APPELLANT]. The succession of the regulated tenancy to the assured tenancy occurred at the time of the current tenant’s mothers passing. This date from the certificate of death is shown as 3 October 2011.

19. The date of succession sets the condition of the property for the determination of the rent under section 14 Housing Act 1988. All improvements carried out prior to the date of succession fall into the landlord's ownership. All improvements carried out after the assured tenancy starts are disregarded in the determination of the rent for the assured tenancy.

20. The tribunal inspected on the 4 April 2025; the property is accessed from [ADDRESS] through a dedicated set of steps which provides access to a number of maisonettes. The subject property has like the other neighbouring properties an outside space which is in the area in front of the front door. The subject property outside area is comprised an asphalt covered area, with old, treated wood joists which formed part of a decked area. The decking was absent.

21. Within the property there is a large kitchen which is in good condition, the kitchen also has a gas boiler. On the same floor is a living room with double glazing, the room is in good decorative order.

22. The next floor is accessed via stairs and the stairs have a stair lift. On the next floor there are three bedrooms and a bathroom which includes a wet room shower. The property has been re wired.

23. For the purpose of clarity the inspection was to examine the issue raised by the Landlord’s representative in relation to whether and the extent of an outside space that was the subject of the Application for Permission to Appeal. The tribunal took no new evidence in the form or written or oral submissions from the tenant.

24. The tribunal also took the opportunity to see from the outside the neighbouring comparable number [ADDRESS]. This property had a similar outside space, but this was decked with composite decking.

Valuation and Determination

25. Having consideration of the comparable evidence proved by the parties and of our own expertise, general knowledge of rental values in the area, we consider

5 that the open market rent for the property in good tenantable condition would be in the region of £2750.00 per month. In particular the comparable of number [ADDRESS] at £2750.00 per month was useful. The inspection confirmed that both the subject property and the neighbouring comparable had outside spaces. The comparable had an outside space that was fully decked with composite decking and the subject property had the remains of timber decking that was probably at least 15 to 20 years old.

Rent in good marketable condition £2750.00

Deduction for poor specification 25% £687.50

Deduction for disrepair of decking on outside space £ 100.00

Subtotal

£1962.50

Less 10 % internal decorating responsibilities And supplying of white goods and furnishings

Deduction

£196.25

Total

£1766.25 per month.

Hardship

27. An application for hardship was made at the end of the hearing by the tenant. The Tenant asserted that he and his wife were pensioners without savings and that any increase in rent if backdated would cause hardship.

28. The Landlords representative was asked for their submissions on this aspect and noted they had none not being in a position to agree or disagree with the Tenant.

29. The Tribunal finds that the case for hardship has been made, and the effective date of the increase will be the date of hearing 4 April 2025.

Decision

30. The Tribunal therefore determines the new rent of £1766.25 per month to take effect on 4 April 2025.

Chairman: [NAME]: 4 April 2025

APPEAL PROVISIONS

6 Appeal to the Upper Tribunal A person wishing to appeal this decision to the Upper Tribunal (Property Chamber) on a point of law must seek permission to do so by making a written application to the First-tier Tribunal at the Regional Office which has been dealing with the case which application must: a. be received by the said office within 28 days after the Tribunal sends to the person making the application written reasons for the decision. b. 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. If the application is not received within the 28–day time limit, it must include a request for an extension of time and the reason for it 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.