Tribunal Sets New Rent for Residential Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. MF/LON/OOBC/MNR/2024/0375

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 47 [ADDRESS] [POSTCODE]

R [NAME] [NAME]

[NAME] [RESPONDENT] [NAME] 47 [ADDRESS], [POSTCODE]

Tenant [NAME]

1. The rent is: £ 2100 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 15 July 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 17 July 2017

6. Length of the term or rental period periodic

7. Allocation of liability for repairs Landlord tenant internal minor and decoration

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

9. Description of premises Semi-detached house one living room, two bedrooms, one bath upstairs one small WC/shower, and outside garden

Chairman R [NAME] of Decision 29 November 2024

1

Case Reference

: MF/LON/OOBC/MNR/2024/0375

Property : 47 [ADDRESS], [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [NAME] [APPELLANT] [NAME] represented by [RESPONDENT] [NAME] of Objection : 9 July 2024

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

Tribunal

: [NAME] [NAME] [NAME], no inspection

Date of Summary Reasons

: 29 November 2024 Date of Full Reasons : 17 December 2024

© CROWN COPYRIGHT 2024

_______________________________________________

DECISION

The Tribunal determines a rent of £2100.00 per calendar month with effect from 15 July 2024 ____________________________________

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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Full REASONS

Following a request from [NAME] for full reasons.

Background 1. On 12 June 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2500.00 per month in place of the existing rent of £1650.00 per month to take effect from 15 July 2024.

2. On 9 July 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. The Tenant’s referral was received by the Tribunal on 9 July 2024.

Inspection 3. The Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties.

Evidence

4. The Applicant, [APPELLANT] attended the hearing and presented his case. The Applicant described the property, which is a semi- detached house, one kitchen, one living room, two bedrooms, and one bathroom, there is a garden outside. Also confirming it was in good condition, and that the landlord attended to all repairs when needed.

5. In the actual hearing, the Applicant did not cite specific comparable but felt it would be in the order of £1650- £1700 per month. The Tribunal did consider the Applicants submissions which included information on rental levels.

6. The Applicant submitted on 27 November 2024 a letter to the Tribunal noting;

7. A completed Reply Form dated 16 October 2024 and including a submission.

8. The submission stated (i) a denial the property is sublet (ii) it is not used for business purposes (iii) that the property is not licensed and so not capable of being rented out (iv) a note of earning and that the tenant is in receipt of universal credit (v) annexe 3 and 4 show comparable properties at £1800 and £1975 per month.

9. There is also an external picture of; [ADDRESS] with a figure of £1600 per month, [ADDRESS] with a figure of £1600 per month, [ADDRESS] with a figure of £1600 per month; [ADDRESS] with a figure of £1675 per month, [ADDRESS] with a figure of £1700 per month.

3 10. No application for hardship was made.

The Respondents case

11. Papers submitted to the Tribunal comprised;

A letter dated 1 November 2024, confirmed to the Tribunal that Mr [RESPONDENT] was representing his wife the Respondent [NAME] [RESPONDENT] [NAME].

An extract of a messaging APP dated 24 August 2018 which detailed rent payment collection.

Copy of certificate of delivery dated 28 September 2024

Copy of acknowledgement from [NAME] of an Application for Temporary Exemption

Photograph of a kitchen which looks newly fitted

Results for occupancy search for property dated 25-9-24

Photograph of a carpeted room with red curtains

Photograph of a magnolia painted carpeted room empty

Photograph of a bathroom with white suite

Photograph of a room with laminate flooring – empty

Photograph of a paved garden with shed

Photograph of the front exterior of a Victorian end of terrace house

Extract of “zoopla” of same house showing marketing at £2750 per month asking

Extract of Companies House Register for [ADDRESS] Reply Form showing landlord supplied Double glazing, central heating, curtains, carpets and white goods.

Copy of Submission by the Respondent dated 20 October 2024 asserting (i) the tenant's son lives at the property and carries out a business from it (ii) the landlord has applied for a licence under the selective licensing scheme for [NAME], Other matters also included within the submission.

Copy of letter from [NAME] noting that on the 20 September 2024 the landlord applied for a Temporary Exemption Notice.

4 The Respondent confirmed the property was in good order and confirmed the seeking of a rent of £2500 per month.

Determination and Valuation

12. The Tribunal did not inspect the property but relied on the photographs of the property within the submissions and the parties description. Both parties agreed that the property was in good order and that the landlord carried out repairs when needed.

13. In terms of the submissions relating to alleged subletting and use of the property for business purposes these do not have any impact upon the determination of the rent.

14. With respect to the licence and the application to [NAME] for a Temporary Exemption dated 20 September 2024, the Notice of Increase is dated 12 June with effect from the 15 July 2024. The Tribunal has no evidence to indicate that the Landlord held a licence at the date the Notice of Increase of Rent was due to come into effect.

15. The Respondent submitted a number of comparables in the Road which ranged from £1600 per month to £1750 per month. Unfortunately, these property details do not give details of internal condition or specification. Also, the comparables do not have any detail of whether they were achieved or when. The Tribunal however gives them some weight in terms of context only.

16. Having consideration of the comparable evidence provided by the parties and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the property in good tenantable condition, and licenced would be in the region of £2200.00 per month. However, at the date of the rent there was no licence. There was no indication that the property would fail to attain a licence, so the Tribunal makes a reduction of 5% in the rental bid pending an application by the landlord.

Decision 17. 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 shorthold tenancy without a licence as £2200.00 less 5% which gives was £2090.00 per month round to £2100.00 per month.

18. The Tribunal determines the new rent of £2100.00 per month to take effect on 15 July 2024. This being the date as set out in the Landlord’s Notice of Increase.

Chairman: R [NAME] of Summary Reasons: 29 November 2024 Date of Full Reasons: 17 December 2024

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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.

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00BC/MNR/2024/0375

Housing Act 1988 Section 14

R [NAME] [NAME]

[NAME] [RESPONDENT] [APPELLANT] 47 [ADDRESS], [POSTCODE]

[NAME] [APPELLANT]

2. The date the decision takes effect is: 15 July 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 17 July 2017

6. Length of the term or rental period periodic

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

Chairman R [NAME] of Decision 29 November 2024

1

Case Reference

: MF/LON/OOBC/MNR/2024/0375

Property : 47 [ADDRESS], [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [NAME] [APPELLANT] [NAME] represented by [RESPONDENT] of Objection : 9 July 2024

Tribunal

: [NAME] [NAME], no inspection

Date of Summary Reasons

: 29 November 2024

© CROWN COPYRIGHT 2024

_______________________________________________

DECISION

2 SUMMARY REASONS

Evidence

4.The Applicant, [APPELLANT] attended the hearing and presented his case. The Applicant described the property, which is a semi- detached house, one kitchen, one living room, two bedrooms, and one bathroom, there is a garden outside. Also confirming it was in good condition, and that the landlord attended to all repairs when needed.

In terms of rental level, the Applicant did not cite specific comparable but felt it would be in the order of £1650- £1700 per month.

No application for hardship was made.

The Respondent confirmed the property was in good order and confirmed the seeking of a rent of £2500.00 per month.

Determination and Valuation

5. Having consideration of the comparable evidence provided by the parties and of our own expert, 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 £2100.00 per week.

Decision 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 was £2100.00 per month.

8. The Tribunal directs the new rent of £2100.00 per month to take effect on 15 July 2024. This being the date as set out in the Landlord’s Notice of Increase.

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Chairman: R [NAME]: 29 November 2024

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 request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA.