Have you had First-tier Tribunal experiences in rent rises?

Have you had First-tier Tribunal experiences in rent rises?

9:39 AM, 4th December 2023, About 11 months ago 14

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Hello, Has anyone had any experience with the First-tier Tribunal (FTT) for market value case?

History is, tenant moved in and given 12 month AST in early 2020. They have not been given new AST or had rent raised since.

Rent proposed notified by Form 4 (email and sent Royal Mail signed for) to raise the rent to a figure still well below market value.

Tenant has not contacted me and has just not paid higher rental amount and now I have received a case from the FTT.

Has anyone ever had this?

I have raised many a rent before (all reasonable market value increases) and previously either the tenant pays or moves out, and they usually contact me to tell me what their intentions are going forward.

I have never came across this. Can they refuse to pay the rent increase (which is below market value) and refuse to move out?

Has anyone been through a case with the First-tier Tribunal?

Thank you,

Zoe


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homemaker

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16:16 PM, 4th December 2023, About 11 months ago

Further to Seething Landlords suggestion I'm attaching the summary. Please note that the tenant had lost the original notice and requested a copy which was printed off unsigned. She used this copy to make her appeal which meant that I had to re-serve! I don't think case is actually published anywhere but here is the summary.

Summary of Decision
1. On 10th May 2021 the Tribunal determined a market rent of £780 per
month to take effect from 20th April 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 9th January 2021 the Landlord served a notice under Section 13(2)
Landlord and Tenant Act 1988 increasing the rent with effect from 20th
March 2021.
4. On examination the Tribunal took the preliminary view that this notice
was defective as it was not signed by the Landlord.
5. On 15th March 2021 the Landlord served a second notice under Section
13(2) of the Housing Act 1988 which proposed a new rent of £850 per
month in place of the existing rent of £725 per month to take effect from
20th April 2021. The notice complied with the legal requirements.
6. The Coronavirus pandemic and considerations of health have caused a
suspension of inspections and Tribunal hearings in person until further
notice.
7. The Tribunal issued directions on 7th April 2021 informing the parties
that it deemed the Applicant to have objected to the Notice and that 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 had been
copied to the other parties.
The property
9. From the information given in the papers and available on the internet
the property comprises an inner-terraced house built flush to the front
pavement. It is situated in a cul-de-sac less than one mile from the centre
of Sittingbourne with access to all main amenities.
10. The accommodation is described as including a Living Room, Dining
Room, Kitchen, three Bedrooms (one walk through), Bathroom and rear
Garden. Windows are double-glazed and there is gas-fired central
heating.
11. Carpets are included but the Applicant supplies the white goods.
CHI/29UM/MNR/2021/0012
3
Submissions
12. The initial tenancy began in April 2011.
13. The Tenant has replaced a bathroom cabinet and carried out some
redecoration where walls have shown evidence of damp. The Landlord
has taken steps to remedy the dampness.
14. The Landlord referred the Tribunal to rents achieved for other properties
in Sittingbourne.
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.
CHI/29UM/MNR/2021/0012
4
(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
15. 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.
16. 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.
17. Having carefully considered the representations from the parties and
associated correspondence and using its own judgement and knowledge
of rental values in Sittingbourne the Tribunal decided that the market
rent for a property with similar accommodation if let today in a
condition that was usual for such an open market letting would be £900
per month.
18. The Tribunal decided that an adjustment to this rent should be made to
reflect the difficult parking in such a narrow street where the house
stands flush to the pavement. Further deductions should be made to
reflect that one bedroom is accessed through another room and that the
Applicant provides the white goods.
19. Using its experience the Tribunal decided that the following adjustments
should be made:
CHI/29UM/MNR/2021/0012
5
Tenant’s provision of white goods £45
Access to bedroom through another room £50
Narrow street and parking £25
____
TOTAL £120
20. 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
21. 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 £780 per
month.
22. The Tribunal directed that the new rent of £780 per month should take
effect from 20th April 2021 this being the date specified in the Notice.

Seething Landlord

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17:47 PM, 4th December 2023, About 11 months ago

Reply to the comment left by at 04/12/2023 - 16:16Thanks for this. I think you will find that all FTT decisions are published on the site that I referred to in an earlier post and the format in your case is very similar to others that I have looked up. I assume that they follow a set formula.
What I have found interesting is how they assess the standard rent but then take into account features of the property and/or tenancy, including parking facilities, whether the landlord has provided white goods, carpets, curtains etc. and make deductions accordingly (maybe additions in some cases) to arrive at the market rent for the specific property.

Chris @ Possession Friend

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21:41 PM, 4th December 2023, About 11 months ago

We've done these.
Tenant must raise an appeal within 30 days of receipt of Form 4 or notice to increase rent ( which you must be able to prove - sounds like you can ) unless a very good reason for a late application satisfies the Tribunal.

Michael Booth

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6:44 AM, 5th December 2023, About 11 months ago

Yes tennant asked for a fair rent review after she moved in claiming the rent was too high £90 a week yes you are reading right , l said not a problem knowing that l was letting her have the house extremely cheap , rent review took place and the rent was increased accordingly , after which shy said let's go back to the agreed rent and of coarse l declined.and told her l wanted the rent reviewer official rate.

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