[2024] UKUT 182 (LC)

Fecha: 21-Jun-2024

Background

Background

The property is a two-storey end of terrace house; the appellants live there under an assured shorthold tenancy, granted for twelve months from 31 July 2019 and continuing after that from month to month.

In these circumstances section 13 of the Housing Act 1988 provides that:

“(2)

For the purpose of securing an increase in the rent under a tenancy to which this section applies, the landlord may serve on the tenant a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice…”

Section 13(4) says that where such a notice is served the new rent takes effect as stated in the notice unless, before the date of the new period of the tenancy, the tenant refers the notice to the FTT. Section 14 says that if the tenant does so, the FTT:

“(1)

… shall determine the rent at which, subject to subsections (2) and (4) below, the [FTT considers] 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.”

On 1 March 2023 the appellants referred to the FTT a notice of increase of rent served by the respondent. It was dated 28 February 2023 and proposed a rent of £1,400 per month with effect from 31 March 2023 in place of the existing rent of £1,100 per month. The appellants made an application to the FTT for a determination of the market rent for the property pursuant to section 14 of the 1988 Act.