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 3 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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Comments

LL23

10:59 AM, 4th December 2023, About 3 months ago

I recently had an experience with the London Tribunal but with regards to service charges.
There is a £100 fee to apply and another £200 for a hearing. Any tenant who goes there is serious and is willing to put in a good deal of time into it.
Bottom line from my experience is that you MUST take legal advice. An argument that may seem strong to you and friends and family could simply be blown away (right away) by a provision of the law.
You can still negotiate with tenant, find low cost legal advice, prepare your hearing bundle yourself etc.
If I were you, I would go visit the tenant, hear them out thoroughly and patiently, explain your side politely, and afterwards offer a reasonable way to settle the issue.
PS: I am both a landlord and a tenant.

Fed Up Landlord

10:59 AM, 4th December 2023, About 3 months ago

In 22 years of being a landlord and ten as an agent, I have never had a challenge to a Section 13 Notice. From knowledge of other forums, if it is at or below market, then the Tribunal will rule in your favour and the tenant will need to pay the increase from the date of the Section 13 Notice.
Might be worth reading this article:
https://www.citizensadvice.org.uk/housing/renting-privately/during-your-tenancy/challenging-a-rent-increase/#:~:text=If%20the%20tribunal%20decides%20your%20rent%20should%20be%20increased%20you,on%20the%20section%2013%20notice.

If this occurs and they are two months in arrears as a result, issue a Section 8 and 21. You need this tenant out.

MFA

11:50 AM, 4th December 2023, About 3 months ago

Reply to the comment left by Fed Up Landlord at 04/12/2023 - 10:59
Hi , I have just been through it last month yes they can refuse to pay the increase if you serve a section 13 but once it goes to tribunal and they make a decision they must pay the increase not necessarily from the date section 13 was served but can be from when the decision is made.

I asked for a rent increase amount which I didn't get but I was happy with the amount the rent was increased by as the tenant was paying rent way below market rate.

I would suggest you ask for legal advice however make sure everything is up to date and that there are no outstanding repairs.

Seething Landlord

12:00 PM, 4th December 2023, About 3 months ago

I suggest that you check out the following links which will give an understanding of the procedure and how the tribunal reaches its decisions:
T540 - Guidance on rent Cases - GOV.UK https://assets.publishing.service.gov.uk/media/5b06e15fe5274a1bad0ff010/t540-eng.pdf?shem=ssusxt

Residential property tribunal decisions - GOV.UK https://www.gov.uk/residential-property-tribunal-decisions?shem=ssusxt

David

12:08 PM, 4th December 2023, About 3 months ago

FTT rent cases are quite rare, but I think we will be seeing a lot more of them in the future. If you are confident that your new rent is still below market rent for the area, then you will almost certainly win the case and the tenant will have to pay you all the back-rent from the date the new rent was due.

Zoe Roxburgh

13:03 PM, 4th December 2023, About 3 months ago

Reply to the comment left by LL23 at 04/12/2023 - 10:59
He will not discuss the rent with me, ignores my email attempts to discuss. he has told tribunal that he cant afford rents in the area and it would cause him and his family hardship and stress to move? No mention as to evidence to support his case.

Zoe Roxburgh

13:08 PM, 4th December 2023, About 3 months ago

Reply to the comment left by MFA at 04/12/2023 - 11:50Can you give me an idea of rough figures ?
This is a 5 bed detached home,
Rent feb 2020 £1200.00
Proof of Houses renting recently for £2300-£3000.
Rent on section 13 £1950.00.
I thought this was reasonable as market value.
Everything is up to date, and no issues with conditions, ( he has called council in already as another way not to pay) but they have found No issues at the property.

Freda Blogs

14:19 PM, 4th December 2023, About 3 months ago

Unless we know the location and details of the property we can't offer any opinion as to specific figures.

However, some observations: you’re looking for a £750 pcm uplift - 62.5%. Yes, the tenant has had the benefit of a favourable rent, but that percentage is huge. Secondly, the range of rents you’re suggesting, of £2300 to £3000, seems very broad. I suggest you try and narrow it down so that the comparables are truly reflective of the property and location in question in order to give weight to your case.

homemaker

14:41 PM, 4th December 2023, About 3 months ago

I had an experience after lockdown but before it was possible for the Tribunal panel to make visits. I provided evidence of compliance ( gas safety/epc/ EICR etc and also proof of improvements made - solar panels, installation of shower , humidistat, kitchen extraction etc. My tenant was on full housing benefit and I requested the LHA rate of £850 so it would have been nil cost to her. I was awarded £775 so I would say that market rent and even LHA rate is certainly not guaranteed . In your case Zoe I have some sympathy with your tenant. Regardless of what current market rates are you are seeking a 60% increase in less than 4 years. Even if the new rent can be justified I can understand his reaction. Most of us haven’t seen our incomes increased at this level.

Seething Landlord

14:53 PM, 4th December 2023, About 3 months ago

Reply to the comment left by at 04/12/2023 - 14:41
Why not provide a link to the published reasons for the decision so that she can see for herself how they arrived at their conclusion?

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