Section 14 Housing Act 1988: how the tribunal decides an open-market rent

A tenant under an assured tenancy other than a relevant low-cost tenancy may make an application to the appropriate tribunal for the purpose of challenging the rent payable under the tenancy. No application may be made under subsection (A1) if— the rent payable under the tenancy is pursuant to a previous determination under this section, or more than six months have elapsed since the beginning of the tenancy. A tenant under any assured tenancy may make an application to the appropriate tribunal for the purpose of challenging a new rent proposed in a notice under section 13(2) or 13A(2). Where, under subsection (4)(a) of section 13 above, a tenant refers to the appropriate tribunal a notice under subsection (2) of that section, Where an application is made under subsection (A1) or (A3), the appropriate tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the appropriate 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— which is a periodic tenancy having the same periods as those of the tenancy to which the notice relates; which begins at the beginning of the new period specified in the notice; which has the same periods as those of the tenancy to which the application relates; which begins— in the case of an application under subsection (A1), on the date of the application; in the case of an application under subsection (A3), at the beginning of the new period specified in the notice; and 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 application relates; and 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. In making a determination under this section, there shall be disregarded— any effect on the rent attributable to the granting of a tenancy to a sitting tenant; 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— was carried out otherwise than in pursuance of an obligation to his immediate landlord, or 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 any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy. 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 application relates or the following conditions are satisfied, namely— that it was carried out not more than twenty-one years before the date of service of the notice the application ; and 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 application , the dwelling-house has been let under an assured tenancy; and 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. In making a determination under this section in any case where under Part I of the Local Government Finance Act 1992 the landlord or a superior landlord is liable to pay council tax in respect of a hereditament ( “the relevant hereditament”) of which the dwelling-house forms part, the appropriate tribunal shall have regard to the amount of council tax which, as at the date on which the notice under section 13(2) above was served, of the application was set by the billing authority— for the financial year in which that notice was served the application was made , and for the category of dwellings within which the relevant hereditament fell on that date, but any discount or other reduction affecting the amount of council tax payable shall be disregarded. In subsection (3A) above— “hereditament” means a dwelling within the meaning of Part I of the Local Government Finance Act 1992, “billing authority” has the same meaning as in that Part of that Act, and “category of dwellings” has the same meaning as in section 30(1) and (2) of that Act. 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 of the dwelling-house concerned or are payable under separate agreements. Where any rates in respect of the dwelling-house concerned are borne by the landlord or a superior landlord, the appropriate tribunal shall make their determination under this section as if the rates were not so borne. In any case where— the appropriate tribunal have before them at the same time the reference of a notice under section 6(2) above relating to a tenancy (in this subsection referred to as “the section 6 reference”) and the reference of a notice under section 13(2) above relating to the same tenancy (in this subsection referred to as “ the section 13 reference ”), and the date specified in the notice under section 6(2) above is not later than the first day of the new period specified in the notice under section 13(2) above, and the appropriate tribunal propose to hear the two references together, the appropriate tribunal shall make a determination in relation to the section 6 reference before making their determination in relation to the section 13 reference and, accordingly, in such a case the reference in subsection(1)(c) above to the terms of the tenancy to which the notice relates shall be construed as a reference to those terms as varied by virtue of the determination made in relation to the section 6 reference. Where a notice under section 13(2) above has been referred to the appropriate tribunal , then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct. Nothing in this section requires the appropriate tribunal to continue with their determination of a rent for a dwelling-house if the landlord and tenant give notice in writing that they no longer require such a determination or if the tenancy has come to an end. This section shall apply in relation to an assured shorthold tenancy as if in subsection (1) the reference to an assured tenancy were a reference to an assured shorthold tenancy.