35 York Street Cowes Isle of Wight PO31 7BS CHI/00MW/MNR/2021/0126

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No CHI/00MW/MNR/2021/0126
Between
Mr W ArnoldApplicantMr M LuterRespondentMr William Charles ArnoldTenantMr Mark LuterLandlord
Before
Mr I R Perry BSc FRICSMiss C D Barton BSc MRICSMr M C Woodrow MRICSNone Tenant : Mr W Arnold Representative : None for the ApplicantDate 23 December 2021Property: 35 York Street, Cowes, Isle Of Wight, PO31 7BS

DECISION

[1]On 23rd December 2021 the Tribunal determined a market rent of £164 per week to take effect from 15th December 2021. Background[2]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.[3]On 20th October 2021 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £185 per week, equating to £801.66 per month, in place of the existing rent of £150 per week, equating to £650 per month, to take effect from 15th December 2021. The notice complied with the legal requirements.[4]On 26th October 2021 the Tribunal received an application from the Tenant under Section 13(4) (a) of the Housing Act 1988.[5]The Coronavirus pandemic and considerations of health have caused a suspension of inspections and Tribunal hearings in person until further notice.[6]The Tribunal issued directions on 5th November 2021 informing the parties that the Tribunal intended to determine the rent based on written representations and that the Tribunal will seek to view the property on the internet. The parties were invited to make submissions which could include photographs or videos.[7]Both parties submitted detailed papers by the specified dates very clearly setting out their respective cases. The papers were also copied to the other party.[8]No objection having been received from either party a Tribunal determined the case on 23rd December 2021 using video conferencing. The Property[9]From the information given in the papers and available on the internet the property comprises a flush-fronted terraced house with a brick front elevation.[10]It is situated in an established residential area close to the town centre. Local amenities are available as well as ferry links to the mainland.[11]The accommodation is on a ‘split-level’ basis over four levels and includes a Living Room, Kitchen, two Bedrooms, an attic Room and a Bathroom. There is a small rear garden and a garden shed. There is no off-street parking.[12]The property has central heating and is said to be double glazed. Submissions[13]The Landlord states that the property was refurbished in 2009, including the re-fitting of the Kitchen and Bathroom.[14]The initial tenancy began on 18th June 2003 and includes the condition that the Tenant is responsible for all internal decorations. The parties agree that the carpets, curtains and white goods are provided by the Tenant.[15]The Landlord provided details of two comparable properties which had been available to let, including the adjoining house which was advertised in September 2021 at an asking rent of £800 per month and a second nearby property advertised in April 2021 at an asking rent of £825 per month.[16]The Tenant describes the condition of the property as Fair/Good. 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[17]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.[18]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. Such rents are normally expressed as a monthly figure. The personal circumstances of the Tenant are not relevant to this issue.[19]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values on the Isle of Wight 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 £825 per month. The Tribunal decided that the lack of off-street parking was offset by the proximity of the property to the nearby Marinas.[20]However, the property is not let on the same basis as an open market assured shorthold tenancy and a number of adjustments need to be made to reflect this.[21]Using its experience the Tribunal decided that the following adjustments to a monthly rent should be made: Tenant’s provision of white goods £30 Tenant’s provision of carpets £35 Tenant’s provision of curtains £15 Tenant’s liability for internal decoration £35 ___ TOTAL £115[22]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[23]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 £710 per month which equates to £163.84 per week, rounded to £164 per week.[24]The Tribunal directed that the new rent of £164 per week should take effect from 15th December 2021, this being the date within the original notice. 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 2021 + FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/00MW/MNR/2021/0126 Property : 35 York Street Cowes Isle of Wight PO31 7BS Landlord : Mr M Luter Representative : None Tenant : Mr W Arnold Representative : None Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988 Tribunal Members : Mr I R Perry BSc FRICS Miss C D Barton BSc MRICS Mr M C Woodrow MRICS Date of Inspection : None. Paper determination Date of Decision : 23rd December 2021 DECISION CHI/00MW/MNR/2021/0126 2 Summary of Decision[1]On 23rd December 2021 the Tribunal determined a market rent of £164 per week to take effect from 15th December 2021. Background[2]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.[3]On 20th October 2021 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £185 per week, equating to £801.66 per month, in place of the existing rent of £150 per week, equating to £650 per month, to take effect from 15th December 2021. The notice complied with the legal requirements.[4]On 26th October 2021 the Tribunal received an application from the Tenant under Section 13(4) (a) of the Housing Act 1988.[5]The Coronavirus pandemic and considerations of health have caused a suspension of inspections and Tribunal hearings in person until further notice.[6]The Tribunal issued directions on 5th November 2021 informing the parties that the Tribunal intended to determine the rent based on written representations and that the Tribunal will seek to view the property on the internet. The parties were invited to make submissions which could include photographs or videos.[7]Both parties submitted detailed papers by the specified dates very clearly setting out their respective cases. The papers were also copied to the other party.[8]No objection having been received from either party a Tribunal determined the case on 23rd December 2021 using video conferencing. The Property[9]From the information given in the papers and available on the internet the property comprises a flush-fronted terraced house with a brick front elevation.[10]It is situated in an established residential area close to the town centre. Local amenities are available as well as ferry links to the mainland.[11]The accommodation is on a ‘split-level’ basis over four levels and includes a Living Room, Kitchen, two Bedrooms, an attic Room and a Bathroom. There is a small rear garden and a garden shed. There is no off-street parking.[12]The property has central heating and is said to be double glazed. CHI/00MW/MNR/2021/0126 3 Submissions[13]The Landlord states that the property was refurbished in 2009, including the re-fitting of the Kitchen and Bathroom.[14]The initial tenancy began on 18th June 2003 and includes the condition that the Tenant is responsible for all internal decorations. The parties agree that the carpets, curtains and white goods are provided by the Tenant.[15]The Landlord provided details of two comparable properties which had been available to let, including the adjoining house which was advertised in September 2021 at an asking rent of £800 per month and a second nearby property advertised in April 2021 at an asking rent of £825 per month.[16]The Tenant describes the condition of the property as Fair/Good. 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 CHI/00MW/MNR/2021/0126 4 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[17]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.[18]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. Such rents are normally expressed as a monthly figure. The personal circumstances of the Tenant are not relevant to this issue.[19]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values on the Isle of Wight 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 £825 per month. The Tribunal decided that the lack of off-street parking was offset by the proximity of the property to the nearby Marinas.[20]However, the property is not let on the same basis as an open market assured shorthold tenancy and a number of adjustments need to be made to reflect this. CHI/00MW/MNR/2021/0126 5[21]Using its experience the Tribunal decided that the following adjustments to a monthly rent should be made: Tenant’s provision of white goods £30 Tenant’s provision of carpets £35 Tenant’s provision of curtains £15 Tenant’s liability for internal decoration £35 ___ TOTAL £115[22]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[23]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 £710 per month which equates to £163.84 per week, rounded to £164 per week.[24]The Tribunal directed that the new rent of £164 per week should take effect from 15th December 2021, this being the date within the original notice. 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. CHI/00MW/MNR/2021/0126 6[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.