52 Combe Bank Lindthorpe Way Brixham Devon TQ5 8PB CHI/00HH/MNR/2023/0048

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No CHI/00HH/MNR/2023/0048
Between
Mr C TimmsApplicantStonewater LimitedRespondentMr Chris TimmsTenantStonewater LimitedLandlord
Before
Mr I R Perry FRICSMr S J Hodges FRICSMr J S Reichel MRICSNone for the ApplicantDate 6 June 2023Property: 52 Combe Bank, Lindthorpe Way, Brixham, Devon, TQ5 8BB

DECISION

[1]On 6th June 2023 the Tribunal determined a market rent of £117.70 per week, excluding services from 3rd April 2023. Services are an additional £107.78 per week.[2]The Tribunal is aware that this is more than the rent sought by the Landlord who is not obliged to charge this open market rent. Background[3]The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.[4]On 20th February 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new weekly rent of £193.69 per week including £107.78 for services, leaving a rent element of £85.91 per week in place of the existing rent of £130.50 which included £53.17 for services leaving £77.33 for the rental element, to take effect from 3rd April 2023. The notice complied with the legal requirements. The rental element had increased by £8.58 per week and the services had increased by £54.61 per week.[5]On 14th March 2023 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.[6]The Tribunal does not consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either is specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.[7]The Tribunal issued directions on 2nd May 2023 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos.[8]Both parties submitted papers by the specified dates which included photographs, which were also copied to the other party.[9]Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case 6th June 2023 based on the written representations received. The Property[10]From the information given in the papers and available on the internet the property comprises a first-floor Supported Retirement Living studio within a development of 66 flats and studios, itself within walking distance of the centre of Brixham. There is a bus service from outside the property connecting to Paignton, Torquay and Newton Abbott.[11]The accommodation comprises a Bedsitting room, Kitchen and Shower room with WC. There are 2 lifts giving access to the upper floors, a communal laundry, guest accommodation, communal lounge, conservatory and gardens. There is limited off-street parking. Submissions[12]The initial tenancy agreement states that the tenancy began on 22nd April 2016 and provides for the rent to be reviewed on 3rd April each year.[13]The property has gas-fired central heating and double-glazed windows. The Energy Performance Rating is ‘B’.[14]The Landlord explained that the development is being refurbished over a time frame of some years, and states that the Kitchen was refitted in 2007, the Bathroom in 2014 and the windows in 2009/10. In addition the Landlord states that there is a washing machine and tumble dryer available in the communal laundry. The Tenant provides a fridge, cooker, carpets and curtains within the studio.[15]The Tenant states that there is no off-street parking, that the kitchen and bathroom fittings are dated, the shower door needs repair and the heating system is erratic.[16]The Tribunal was provided with a detailed breakdown of the services provided within the agreement. The service charge element has almost doubled in the last year, mostly due to energy and heating costs.[17]The Tribunal was provided with details of several studios available to rent in the area with asking rents from £525 per month to £750 per month. These equate to £121.15 per week to £173.07 per week. The Law S14 Determination of Rent by First-tier Tribunal(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal 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, in respect of council tax 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. Consideration and Valuation[18]The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.[19]The Tribunal is required to determine 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. The personal circumstances of the Tenant are not relevant to this issue.[20]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in South Devon the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £550 per month. It should be noted that most market rents are quoted on a monthly basis. This figure equates to £126.92.[21]However, the property is not let on the same basis as an open market letting and adjustments need to be made to this figure to reflect the Tenant’s provision of white goods within the studio itself £20, the Tenant’s provision of carpets £15, and the Tenant’s provision of curtains £5. A total adjustment of £40 per month.[22]Therefore, an open market rent for the property let under open market conditions is assessed by the Tribunal at £510 per month which equates to £117.70 per week.[23]The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination[24]The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £117.70 per week exclusive of the service charge of £107.78 which will therefore be recoverable in addition to the rent determined.[25]The Tribunal directed that the new rent of £117.70 per week should take effect from 3rd April 2023.[26]The Landlord is not obliged to charge this higher rent of £117.70 per week for the rental figure. RIGHTS OF APPEAL[1]A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case. Where possible you should send your application for permission to appeal by email to rpsouthern@justice.gov.uk as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.[2]The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.[3]If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for 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.[4]The application for permission to appeal must 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. --- decision_2.pdf --- © CROWN COPYRIGHT 2023 FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00HH/MNR/2023/0048 Property : 52 Combe Bank Lindthorpe Way Brixham Devon TQ5 8PB Applicant Tenant : Mr C Timms Representative : None Respondent Landlord : Stonewater Limited Representative : None Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988 Tribunal Members : Mr I R Perry FRICS Mr S J Hodges FRICS Mr J S Reichel MRICS Date of Inspection : None. Paper determination Date of Decision : 6th June 2023 DECISION CHI/00HH/MNR/2023/0048 2 Summary of Decision[1]On 6th June 2023 the Tribunal determined a market rent of £117.70 per week, excluding services from 3rd April 2023. Services are an additional £107.78 per week.[2]The Tribunal is aware that this is more than the rent sought by the Landlord who is not obliged to charge this open market rent. Background[3]The case concerned the determination of a market rent for the subject property following a referral of the Landlord’s notice of increase of rent by the Tenant pursuant to sections 13 and 14 Housing Act 1988.[4]On 20th February 2023 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new weekly rent of £193.69 per week including £107.78 for services, leaving a rent element of £85.91 per week in place of the existing rent of £130.50 which included £53.17 for services leaving £77.33 for the rental element, to take effect from 3rd April 2023. The notice complied with the legal requirements. The rental element had increased by £8.58 per week and the services had increased by £54.61 per week.[5]On 14th March 2023 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988.[6]The Tribunal does not consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either is specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.[7]The Tribunal issued directions on 2nd May 2023 informing the parties that, unless either party objected, the Tribunal intended to determine the rent based on written representations. The parties were invited to make submissions which could include photographs or videos.[8]Both parties submitted papers by the specified dates which included photographs, which were also copied to the other party.[9]Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case 6th June 2023 based on the written representations received. The Property[10]From the information given in the papers and available on the internet the property comprises a first-floor Supported Retirement Living studio within a development of 66 flats and studios, itself within walking distance of the centre CHI/00HH/MNR/2023/0048 3 of Brixham. There is a bus service from outside the property connecting to Paignton, Torquay and Newton Abbott.[11]The accommodation comprises a Bedsitting room, Kitchen and Shower room with WC. There are 2 lifts giving access to the upper floors, a communal laundry, guest accommodation, communal lounge, conservatory and gardens. There is limited off-street parking. Submissions[12]The initial tenancy agreement states that the tenancy began on 22nd April 2016 and provides for the rent to be reviewed on 3rd April each year.[13]The property has gas-fired central heating and double-glazed windows. The Energy Performance Rating is ‘B’.[14]The Landlord explained that the development is being refurbished over a time frame of some years, and states that the Kitchen was refitted in 2007, the Bathroom in 2014 and the windows in 2009/10. In addition the Landlord states that there is a washing machine and tumble dryer available in the communal laundry. The Tenant provides a fridge, cooker, carpets and curtains within the studio.[15]The Tenant states that there is no off-street parking, that the kitchen and bathroom fittings are dated, the shower door needs repair and the heating system is erratic.[16]The Tribunal was provided with a detailed breakdown of the services provided within the agreement. The service charge element has almost doubled in the last year, mostly due to energy and heating costs.[17]The Tribunal was provided with details of several studios available to rent in the area with asking rents from £525 per month to £750 per month. These equate to £121.15 per week to £173.07 per week. The Law S14 Determination of Rent by First-tier Tribunal(1) Where, under subsection (4) (a) of section 13 above, a tenant refers to a First-tier Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal 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; CHI/00HH/MNR/2023/0048 4 (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, in respect of council tax 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. CHI/00HH/MNR/2023/0048 5 Consideration and Valuation[18]The Tribunal first considered whether it felt able to reasonably and fairly decide this case based on the papers submitted only with no oral hearing. Having read and considered the papers it decided that it could do so.[19]The Tribunal is required to determine 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. The personal circumstances of the Tenant are not relevant to this issue.[20]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in South Devon the Tribunal decided that the market rent for the subject property if let today in a condition that was usual for such an open market letting would be £550 per month. It should be noted that most market rents are quoted on a monthly basis. This figure equates to £126.92.[21]However, the property is not let on the same basis as an open market letting and adjustments need to be made to this figure to reflect the Tenant’s provision of white goods within the studio itself £20, the Tenant’s provision of carpets £15, and the Tenant’s provision of curtains £5. A total adjustment of £40 per month.[22]Therefore, an open market rent for the property let under open market conditions is assessed by the Tribunal at £510 per month which equates to £117.70 per week.[23]The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause the Tenant undue hardship. Determination[24]The Tribunal therefore decided that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under the terms of this assured tenancy was £117.70 per week exclusive of the service charge of £107.78 which will therefore be recoverable in addition to the rent determined.[25]The Tribunal directed that the new rent of £117.70 per week should take effect from 3rd April 2023.[26]The Landlord is not obliged to charge this higher rent of £117.70 per week for the rental figure. CHI/00HH/MNR/2023/0048 6 RIGHTS OF APPEAL[1]A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application to the First-tier Tribunal at the Regional office which has been dealing with the case. Where possible you should send your application for permission to appeal by email to rpsouthern@justice.gov.uk as this will enable the First-tier Tribunal Regional office to deal with it more efficiently.[2]The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.[3]If the person wishing to appeal does not comply with the 28-day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for 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.[4]The application for permission to appeal must 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.