Judge S BrilliantMs S Redmond MRICSDate 14 January 2025Property: Flat 4, Len Bishop Court, 3 Schoolhouse Lane, LONDON E1W 3AJ
DECISION
in accordance with section 14 of the Housing Act 1988 Tribunal members : Judge S Brilliant Ms S Redmond MRICS Date of decision : 14 January 2025 Decision of the Tribunal The FTT determines the rent to be £295.05 per week, with effect from 7 October 2024. Background[1]On 27 September 2024 the Tenant applied to the First-tier Tribunal (“FTT”) referring a notice proposing a new rent under his assured periodic tenancy of the Property. FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) 2[2]The notice, which was served under section 13(2) of the Housing Act 1988 (“the Act”) and was dated 14 August 2024, proposed a rent of £295.05 per week with effect from 7 October 2024.[3]Neither party sent written representations to the FTT regarding the application, and neither party requested an oral hearing.[4]The tenancy commenced on 29 February 2016. The Tenant remains in occupation as a statutory periodic tenant. The current rent payable is £273.96 per week. Inspection[5]Neither party having requested an inspection, the FTT did not inspect the Property. The Law[6]In accordance with the terms of section 14 of the Act, the FTT is required to determine the rent at which it considers the Property might reasonably be expected to let in the open market by a willing landlord under an assured tenancy on the same terms as the actual tenancy ignoring any increase in value attributable to tenant’s improvements and any decrease in value due to the tenant’s failure to comply with any terms of the tenancy. The FTT is also required to take into account(a) the condition of the Property, save to the extent that any disrepair is due to the Tenant’s failure to comply with any terms of the tenancy and(b) the terms of the tenancy. Valuation[7]The starting point is to determine the rent which the Landlord could reasonably be expected to obtain for the Property in the open market in the condition considered usual for a modern letting (“the initial valuation”).[8]There was no specific comparable rental evidence from the Landlord or the Tenant. When calculating the initial valuation, the FTT decided to rely upon its own knowledge and experience. The range of rents for 2- bedroom properties in the neighbourhood, unfurnished, and in good condition seemed to be in the region of £1,850 to £2,500 per month, or £427 to £577 per week.[9]Having considered its own general knowledge of market rental levels for comparable properties in the area in which the Property is situated, and taking into account the description of the accommodation including bedroom sizes and with a single bathroom, the FTT arrived at an initial valuation of £295.05 per week.[10]The FTT had no evidence or representations before it to enable it to consider making any Adjustments to this initial valuation to take into account(a) the actual condition of the Property and(b) the differences (if any) between the terms of this letting and the terms of a standard assured shorthold tenancy. 3[11]Accordingly, the Market Rent for the Property, determined by the FTT for the purposes of section 14 of the Housing Act 1988, is £295.05 per week with effect from 7 October 2024, being the date that the new rent was to take effect pursuant to the Landlord’s notice. Chairman: Simon Brilliant Date: 14 January 2025 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 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-toappeal-a-decision-to-the-upper-tribunal-lands-chamber. 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. 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. 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. 4 If the First-tier Tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).