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] [NAME]

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

Tenant [NAME]

1. The rent is: £ £1653.7 5 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 14 November 2024

*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 14 November 2024

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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] [NAME] of Summary Reasons

: 14 November 2024

© CROWN COPYRIGHT 2024

_______________________________________________

DECISION

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 The Tribunal determines a rent of £1653.75 per calendar month with effect from 14 November 2024, ____________________________________

FULL REASONS

Preliminary

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

Background

1. 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.

2. 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

3. The Tribunal did not inspect the property. 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

4. 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.

Tenant submissions

5. 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 in the 1990s. 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.

6 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

3 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.

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

8. 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

9. 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.

10. 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.

11. 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

12. 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.

13. The landlord’s witness statement concluded that £2450.oo was reasonable for the property.

14. 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.

Determination and Valuation

15. The Tribunal did not inspect the property but has a reasonable understanding from the party's evidence of the condition of the property. The tribunal must take the specification and condition as at the date of succession. At this date the tribunal understands the kitchen and bathroom were dated, subsequent improvements here are disregarded for the purpose of determining the rent. Likewise, the properties double glazing is taken as part of the landlords' improvements. The age and specification of the double glazing is noted. The Tribunal considers the rental figures put forward by the parties.

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16. 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 that the open market rent for the property in good tenantable condition would be in the region of £2450.00 per month. In particular the comparable of number [ADDRESS] at £2750 per month was useful, but requiring adjustment for the fact it the comparable had an outside space.

17. The property is not in the same condition as the comparables, so an adjustment of 25% is made to take into account the specification including but not limited to, no central heating, poor double glazing, poor wiring, dated kitchen and bathroom.

Rent in good marketable condition £2450.00

Deduction for poor specification 25% £612.50

Sub total

£1837.50

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

Deduction

£183.75

Total

£1653.75

Hardship

18. 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.

19. 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.

20. The Tribunal finds that the case for hardship has been made, and the effective date of the increase will be the date of hearing 14 November 2024.

Decision

21. The Tribunal therefore determines the new rent of £1653.75 per month to take effect on 14 November 2024.

Chairman: [NAME]: 14 November 2024

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APPEAL PROVISIONS

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.