70 Knoll Crescent Eastbourne East Sussex BN22 9DP CHI/21UC/MNR/2024/0029

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No CHI/21UC/MNR/2024/0029
Between
Mrs E CanningApplicantKisiwani LtdRespondentMrs Emma CanningTenantKisiwani LtdLandlord
Before
Mr I R Perry FRICSMs C D Barton MRICSMr N I Robinson FRICSNone for the ApplicantDate 1 July 2024Property: 70 Knoll Crescent, Eastbourne, East Sussex, BN22 9DP

DECISION

[1]On 1st July 2024 the Tribunal determined a market rent of £1,185 per month to take effect from 16th February 2024. 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 15th December 2023 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,200 per month in place of the existing rent of £875 per month to take effect from 16th February 2024. The notice complied with the legal requirements.[4]On 23rd January 2024 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988. The application was received on 1st February 2024.[5]The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.[6]The Tribunal issued directions on 24th May 2024 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.[7]Both parties submitted papers by the specified dates setting out their respective cases. The papers were also copied to the other party.[8]Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 1st July 2024 based on the written representations received.[9]These reasons address in summary form the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application. 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. The Property[10]From the information given in the papers and available on the internet, the property comprises a semi-detached house with part rendered and part brick elevations beneath a tiled roof, within a residential area some 2 miles north of the centre of Eastbourne.[11]There are local shops supplying day-to-day requirements, a full range of amenities within the town and Hampden Park station is a short distance away.[12]The accommodation is listed as including a Hall, Living Room, Kitchen and WC all at ground level with 3 Bedrooms and a Bathroom above. There are gardens to front and rear and off-street parking.[13]It is stated that windows are double-glazed and there is a gas-fired central heating system. The Energy performance Rating is ‘D’. Submissions[14]The Landlord stated that the initial tenancy began some ten years ago, on December 16th 2014 at a rent of £800 per annum. The property had been refurbished in 2013. The rent has only been increased by £75 per month over a 10-year period. A schedule of condition from the start of the tenancy shows the property to be in reasonable order throughout, it having been refurbished. Curtains, fridge and washing machine were not provided by the Landlord.[15]The Landlord’s Agent supplied details of a number of lettings including a similar property in the same road with only 2 bedrooms and no driveway let for £1,150 per month; a similar layout 3-bedroom property in Court Road nearby, with off-road parking, let for £1,300 per month; a similar property at 18 Knoll Crescent where the rent was increased in December 2023 to £1,200 per month, but said to be in worse condition; and a further similar property at 42 Knoll Crescent let for £1,200 per month from January 2024.[16]The Tenant refers to damp issues within the property which she says have caused breathing difficulties for her children. She also states that a number of window units are ‘blown’ and the front door has ‘dropped’ and will not close properly. In addition, she refers to a 2-bedroom house in Knoll Crescent on the market for £1,200 per month, but in better condition, and a 3-bedroom house in nearby Sydney Road which is newly decorated throughout and is let for £1,200 per month.[17]The Tenant further states that the revised rent should not exceed £950 per month, that the bathroom and kitchen fittings are 10 years old, and that the Landlord provided a new oven in January 2024.[18]The Tenant also states that she installed a new hall carpet in 2019 and that various attempts have been made to remedy dampness in the property but without success. Consideration and Valuation[19]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.[20]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 Parties are not relevant to this issue.[21]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Eastbourne, 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 £1,300 per month.[22]However, the property is not let on the basis that is normally required with regard to the Tenant’s provision of fridge, washing machine and curtains.[23]In addition, there are some general repair issues relating to damp with associated mould, door closings and ‘blown’ window units.[24]Using its experience the Tribunal decided that the following adjustments should be made: Tenant’s provision of white goods £20 Tenant’s provision of curtains £20 General disrepair including condensation and ‘blown’ windows £75 ____ TOTAL per month £115[25]The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause her undue hardship. Determination[26]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 £1,185 per month.[27]The Tribunal directed that the new rent of £1,185 per month should take effect from 16th February 2024, this being the date specified in the 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 2024 FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CHI/21UC/MNR/2024/0029 Property : 70 Knoll Crescent Eastbourne East Sussex BN22 9DP Applicant Tenant : Mrs E Canning Representative : None Respondent Landlord : Kisiwani Ltd Representative : Town Rentals Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988 Tribunal Members : Mr I R Perry FRICS Ms C D Barton MRICS Mr N I Robinson FRICS Date of Inspection : None. Paper determination Date of Decision : 1st July 2024 DECISION CHI/21UC/MNR/2024/0029 2 Summary of Decision[1]On 1st July 2024 the Tribunal determined a market rent of £1,185 per month to take effect from 16th February 2024. 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 15th December 2023 the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,200 per month in place of the existing rent of £875 per month to take effect from 16th February 2024. The notice complied with the legal requirements.[4]On 23rd January 2024 the Tenant applied to the Tribunal under Section 13(4) (a) of the Housing Act 1988. The application was received on 1st February 2024.[5]The Tribunal does not routinely consider it necessary and proportionate in cases of this nature to undertake inspections or hold Tribunal hearings unless either are specifically requested by either party or a particular point arises which merits such an inspection and/or hearing.[6]The Tribunal issued directions on 24th May 2024 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.[7]Both parties submitted papers by the specified dates setting out their respective cases. The papers were also copied to the other party.[8]Neither party objected to the matter being determined without an oral hearing, so the Tribunal determined the case on 1st July 2024 based on the written representations received.[9]These reasons address in summary form the key issues raised by the parties. They do not recite each and every point referred to either in submissions or during any hearing. However, this does not imply that any points raised, or documents not specifically mentioned were disregarded. If a point or document was referred to in the evidence or submissions that was relevant to a specific issue, then it was considered by the Tribunal. The Tribunal concentrates on those issues which, in its opinion, are fundamental to the application. 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 CHI/21UC/MNR/2024/0029 3 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 CHI/21UC/MNR/2024/0029 4 subsection (1) (a) of that section, whether or not those sums are separate from the sums payable for the occupation. The Property[10]From the information given in the papers and available on the internet, the property comprises a semi-detached house with part rendered and part brick elevations beneath a tiled roof, within a residential area some 2 miles north of the centre of Eastbourne.[11]There are local shops supplying day-to-day requirements, a full range of amenities within the town and Hampden Park station is a short distance away.[12]The accommodation is listed as including a Hall, Living Room, Kitchen and WC all at ground level with 3 Bedrooms and a Bathroom above. There are gardens to front and rear and off-street parking.[13]It is stated that windows are double-glazed and there is a gas-fired central heating system. The Energy performance Rating is ‘D’. Submissions[14]The Landlord stated that the initial tenancy began some ten years ago, on December 16th 2014 at a rent of £800 per annum. The property had been refurbished in 2013. The rent has only been increased by £75 per month over a 10-year period. A schedule of condition from the start of the tenancy shows the property to be in reasonable order throughout, it having been refurbished. Curtains, fridge and washing machine were not provided by the Landlord.[15]The Landlord’s Agent supplied details of a number of lettings including a similar property in the same road with only 2 bedrooms and no driveway let for £1,150 per month; a similar layout 3-bedroom property in Court Road nearby, with off- road parking, let for £1,300 per month; a similar property at 18 Knoll Crescent where the rent was increased in December 2023 to £1,200 per month, but said to be in worse condition; and a further similar property at 42 Knoll Crescent let for £1,200 per month from January 2024.[16]The Tenant refers to damp issues within the property which she says have caused breathing difficulties for her children. She also states that a number of window units are ‘blown’ and the front door has ‘dropped’ and will not close properly. In addition, she refers to a 2-bedroom house in Knoll Crescent on the market for £1,200 per month, but in better condition, and a 3-bedroom house in nearby Sydney Road which is newly decorated throughout and is let for £1,200 per month.[17]The Tenant further states that the revised rent should not exceed £950 per month, that the bathroom and kitchen fittings are 10 years old, and that the Landlord provided a new oven in January 2024.[18]The Tenant also states that she installed a new hall carpet in 2019 and that various attempts have been made to remedy dampness in the property but without success. CHI/21UC/MNR/2024/0029 5 Consideration and Valuation[19]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.[20]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 Parties are not relevant to this issue.[21]Having carefully considered the representations from the parties and associated correspondence and using its own judgement and knowledge of rental values in Eastbourne, 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 £1,300 per month.[22]However, the property is not let on the basis that is normally required with regard to the Tenant’s provision of fridge, washing machine and curtains.[23]In addition, there are some general repair issues relating to damp with associated mould, door closings and ‘blown’ window units.[24]Using its experience the Tribunal decided that the following adjustments should be made: Tenant’s provision of white goods £20 Tenant’s provision of curtains £20 General disrepair including condensation and ‘blown’ windows £75 ____ TOTAL per month £115[25]The Tenant made no representation that the starting date for the new rent specified in the Landlord’s notice would cause her undue hardship. Determination[26]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 £1,185 per month.[27]The Tribunal directed that the new rent of £1,185 per month should take effect from 16th February 2024, this being the date specified in the notice. RIGHTS OF APPEAL CHI/21UC/MNR/2024/0029 6[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.