Tribunal Sets Rent for Assured Tenancy Based on Market Value

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CHI/00MR/MNR/2024/0039

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 Room 5, 30 St. [ADDRESS], [POSTCODE]

[NAME] [NAME] [NAME] [RESPONDENT] [NAME] [RESPONDENT] [NAME]

Landlord [RESPONDENT] c/o [NAME],52-54 [ADDRESS], [POSTCODE]

Tenant Mrs [APPELLANT]

1. The rent is: £ 700.00 Per Calendar Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 01 March 2024

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

4. Date assured tenancy commenced 01 September 2023

5. Length of the term or rental period 6 months

6. Allocation of liability for repairs In accordance with agreement

7. Furniture provided by landlord or superior landlord Bedroom furniture and bed, table and chairs, sofa, white goods.

8. Description of premises A second floor room with shower room forming part of a three storey Victorian semi detached house with shared kitchen and living room which has been converted to a 6 room HMO and two separate flats.

[NAME] [NAME] of Decision 31 May 2024

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CHI/00MR/MNR/2024/0039 Property : Room 5, 30 St. [ADDRESS], [POSTCODE] Applicant : [redacted] : None Respondent : [redacted] : None Type of [NAME] : Section 13(4) Housing Act 1988 Tribunal members : [NAME] [NAME] [NAME] [NAME] [NAME] [NAME] [NAME] [NAME] : Paper determination Date of decision : 31st May 2024

DECISION

2 Decision of the tribunal (1) The Tribunal determines that the rent that the property in its current condition as at the 1st March 2024 might reasonably be expected to achieve in the open market under an assured periodic tenancy is £700 per month Background 1. The tenant has lived in the property as assured periodic tenant since 1st September 2023 with a tenancy agreement of the same date. The Tenant states that he has lived at the property for approximately three years.

2. On the 1st January 2024 the Landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £680 per month to £700 per month, being an increase of £20 effective from 1st March 2024.

3. By an [NAME] dated 3oth January 2024, 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 5th March 2024.

4. On the 28th March 2024 the Landlord made a Case Management [NAME] requesting a two day extension of time, as he was on holiday abroad. This request was considered reasonable and was granted by the Tribunal.

5. The Tribunal considered the matter suitable for a determination on the papers and therefore a hearing was not necessary. The parties did not disagree with this arrangement. The Evidence 6. The Tribunal has before it a bundle of evidence which includes a background to the case, the [NAME], the Assured Shorthold Tenancy Agreement and the directions. The Landlord and the Tenant each completed the Rent Appeal Statements with photographs. In her comprehensive submissions the Tenant provided comparable evidence of similar rooms in the area. Inspection 7. The Tribunal did not inspect the property and relied on the information provided by the parties, Rightmove, [ADDRESS] and its expert knowledge. The property is a second-floor room with shower room forming part of a three storey Victorian semi detached house with shared

3 kitchen and living room which has been converted to a 6 room HMO and two separate flats. The property is located in an established road with access to town centre amenities.

8. The accommodation comprises: 0ne room and shower room, there is electric central heating and windows are double glazed. Small communal garden area. It is stated curtains and white goods were provided by the Landlord. There is a shared kitchen and living room on each floor. The Law 9. 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 10. Having carefully considered all the evidence from the Landlord and the Tenant the Tribunal considers that an achievable rent for the property in a good marketable condition with reasonably modern kitchen and shower room fittings, modern services with carpets curtains and white goods provided by the Landlord would be £750 per month inclusive of services and council tax. This figure is based upon the comparable evidence provided by the Tenant and the Tribunal’s professional judgement and experience. 11 The Tribunal has considered carefully the parties’ submissions and using its own expertise, we consider a deduction of £50 should be applied to take into account the condition of the room and the intermittent lack of hot water. This reduces the rental figure to £700 per month. It should be noted that this figure cannot be a simple arithmetical calculation and is not based on capital costs but is the Tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

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

4 13. The Tribunal received no evidence of hardship from the tenant and, therefore, the rent determined by the tribunal is to take effect from 1st March 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 [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] 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 [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).