[2024] UKUT 41 (LC)

In this appeal the appellant, Peabody Trust, maintains that the way in which the First-tier Tribunal (Property Chamber) (FTT) determined a new rent payable by the respondent, Miss Carole Welstead, under the assured tenancy of her flat in West London was procedurally unfair.

The FTT’s decision was first made on 13 October 2022 and subsequently reviewed and confirmed with additional reasons on 29 November 2022. On the same date the FTT refused permission to appeal but the appellant was not informed of that decision until August 2023. Permission to appeal was subsequently granted by this Tribunal.

The appeal concerns the rent payable from 4 April 2022 for Miss Welstead’s flat at 62 Apsley House, Dickens Yard, Longfield Avenue, London W5, which she has occupied since May 2013 as an assured tenant. Her original landlord, Catalyst Housing Ltd, was a registered provider of social housing. In May 2023 it transferred its property portfolio to Peabody Trust, which is also a registered provider, and it has pursued the appeal.

Catalyst had proposed a rent of £191.78 for Miss Welstead’s flat, inclusive of a fixed service charge of £48.53.

The FTT determined that the weekly rent for the flat in the open market (on the assumptions required by section 14, Housing Act 1988) would be £300, inclusive of a fixed service charge of £39. Because of a government directive limiting the rate at which providers of social housing may increase rents, Peabody is unable to take advantage of the full market rent and the amount which Miss Welstead will in fact pay will be £172.25. The difference between the rent proposed by Catalyst and the rent Miss Welstead will pay is entirely referable to the FTT’s conclusion on the fixed service charge, as that is the only part of the rent which is not restrained by government directive.

At the hearing of the appeal Peabody was represented by MsVictoria Osler, who did not appear before the FTT. Miss Welstead attended without a representative and was able to assist the Tribunal with information about the FTT hearing. I am grateful to them both for their assistance.