74 Stephenson Mews Shephall Stevenage SG2 8UW CAM/26UH/MNR/2024/0026

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No CAM/26UH/MNR/2024/0026
Between
Kim White and Sophie WhiteApplicantGerald Lacome and Rosalyn LacomeRespondent
Before
Mrs E Flint FRICSDate 8 April 2024Property: 74 Stephenson Mews Shephall Stevenage SG2 8UWType of application: Determination of the market rent under Section 14 Housing Act 1988

DECISION

The market rent is £1,300 per month with effect from 18 December 2023. © CROWN COPYRIGHT Background[1]On 11 December 2023 the tenant referred to the Tribunal a notice of increase of rent served by the landlord under section 13 of the Housing Act 1988.[2]The landlord's notice, which was dated 6 November 2023, proposed a rent of £1,400 per month with effect from 18 December 2023 in place of the existing rent of £950 per month.[3]The tenancy agreement which was dated 14 June 2017, was for a period of twelve months from 18 July 2017 at an initial rent of £950 per month. The tenant has been in occupation since 18 July 2011.[4]Directions were issued by the tribunal on 9 February 2024.[5]Prior to the hearing both the landlord and the tenant sent their submissions to the tribunal and copied them to the other party. The Evidence[6]The house is a mid terrace house with living room, kitchen and wc on the ground floor, two bedrooms and bathroom/wc on the first floor. The property is centrally heated.[7]The tenants, in written submissions, stated that there were marks on the walls and carpets, the bathroom extractor was leaking and the bottom of one of the radiators was rusty. There had been no redecoration since moving into the house in 2011. Blinds had been provided by the landlord to the bedrooms and kitchen, no curtains had been supplied. The carpets required replacement.[8]In support of their opinion that the proposed rent was excessive they provided brief details of 12 properties at asking rents of £1300 to £1400 per month.[9]The landlord stated that the house was centrally heated, carpets, curtains and white goods had been supplied by the landlord, the house had off street parking. The property was close to Fairlands Valley park.[10]The rent had not been increased for eight years. In support of the proposed rent they referred to letters from three agents who had stated that the rent was between £1400 and £1550 per month. They also provided brief details of 22 properties at asking rents of between £1400 and £1550 per month.[11]The landlord was of the opinion that the tenant’s comparables were not comparable as they were in different areas and were less attractive properties. The Inspection[12]The house is situated in a cul de sac location of similar modern terraced houses. Externally the house is in good condition. There was a single parking space in front of the house. There was a small rear garden with pedestrian gate to the adjacent road. A block of four storey flats overlooks the rear of the property.[13]Internally there was on the ground floor a living room with patio doors to the rear garden, a kitchen to the front and wc and two double bedrooms and a bathroom/wc on the first floor. The house was centrally heated, the kitchen was fitted with a range of floor and walls units plus white goods. The decorations were poor and the carpets which had not been changed since 2011 showed some wear.[14]The extractor fan in the bathroom had recently been replaced. The law[15]In accordance with the terms of section 14 Housing Act 1988 I proceeded to determine the rent at which I considered that the subject property might reasonably be expected to be let on the open market by a willing landlord under an assured tenancy.[16]In so doing I, as required by section 14(1), ignored the effect on the rental value of the property of any relevant tenant's improvements as defined in section 14(2) of that Act and also any items of disrepair which either the tenant had not reported to the landlord or had not allowed access for the landlord to carry out the necessary repairs. Valuation[17]In coming to my decision, I took into account the rental comparables provided by the landlord and the tenant.[18]I noted that the rents at the higher end of the range were superior to the subject property. Several had garages or two parking spaces, the kitchens and bathrooms were more modern, some had been extended. The floor coverings and decorations were superior in all the comparables.[19]I determined that the open market rent of the property as at 18 December 2023 is £1,300 per month to reflect the older kitchen units, tired decorations, worn carpets, single parking space and overlooking to the rear by a four storey block of flats. The decision[20]The rent of £1,300 per month is effective from 18 December 2023 in accordance with the landlord’s notice. Chairman: Evelyn Flint Dated: 8 April 2024 ANNEX - RIGHTS OF APPEAL I. 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 should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-application-for-permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber II. 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. III. 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. IV. 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. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the Housing Act 1988 or the Local Government and Housing Act 1989, this can only be on a point of law. Appendix Housing Act 1988 14 Determination of rent by rent assessment committee. (1)Where, under subsection (4)(a) of section 13, a tenant refers to a rent assessment committee a notice under subsection (2) of that section, the committee shall determine the rent at which, subject to subsections (2) and (4) below, the committee consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy— (a) which is a periodic tenancy having the same periods as those of the tenancy to which the notice relates;(b) which begins at the beginning of the new period specified in the notice;(c) the terms of which (other than relating to the amount of the rent) are the same as those of the tenancy to which the notice relates; and(d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates. (2) In making a determination under this section, there shall be disregarded— (a) any effect on the rent attributable to the granting of a tenancy to a sitting tenant; (b) any increase in the value of the dwelling-house attributable to a relevant improvement carried out by a person who at the time it was carried out was the tenant, if the improvement— (i) was carried out otherwise than in pursuance of an obligation to his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement; and (c) any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy. (3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates or the following conditions are satisfied, namely— (a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling-house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of joint tenants, at least one of them) did not quit. (4)In this section “rent” does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985, but, subject to that, includes any sums payable by the tenant to the landlord on account of the use of furniture or for any of the matters referred to in subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation of the dwelling-house concerned or are payable under separate agreements…. (7)Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal … shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.