34 Willow Court, 2 Sorrel Road, Whittlesey, Peterborough, PE7 2FN ((Leasehold) disputes (management) - Service charges) -[2022] UKFTT CAM_12UD_MNR_2022_0037- (24 November 2022)

BAILII

Automated Summary

Key Facts

The applicants challenged a rent increase and service charge for meals. The rent increase notice of £469.61 per week, effective 4th April 2022, was invalid as it was served within 52 weeks of the tenancy start (14th December 2021), violating Section 13 of the Housing Act 1988. The meal charge of £22.06 per day was not properly explained in the tenancy agreement and is deemed non-payable. The respondent, The Longhurst Group, failed to attend the 24th November 2022 hearing, leading to a decision in their absence. The respondent is ordered to reimburse the applicants £300 for application and hearing costs.

Issues

  • The Applicants disputed the mandatory food charge of £22.06 per day, which was not mentioned in their tenancy agreement. The Tribunal ruled that the charge is not payable, as it was not properly communicated and the Respondent failed to attend the hearing to justify it.
  • The Applicants challenged a rent increase effective from 4th April 2022, which was issued within the first 52 weeks of their tenancy, violating Section 13 of the Housing Act 1988. The Tribunal found the notice invalid due to timing and failure to properly allocate charges between rent and service charges.

Holdings

  • The rent increase notice dated 14th February 2022 is defective and invalid under Section 13 of the Housing Act 1988. The notice was served within 52 weeks of the tenancy start date (14th December 2021), making it legally unenforceable. Applicants do not owe any increased sums from 4th April 2022 onwards.
  • The meal charge is not payable as it was not properly disclosed in the tenancy agreement. The Respondent failed to explain the charge's nature at the start of the tenancy, and no valid basis for its inclusion in the service charge was established. Applicants should have the charge deducted from their rent account.

Remedies

  • The Respondent is required to reimburse the Applicants £300 for the cost of their applications and hearing fee. The Respondent is also precluded from pursuing any costs from the service charge.
  • The Tribunal ruled that the meal charge is not payable and should be deducted from the Applicants' rent. The charge was not properly explained in the tenancy agreement, and the Applicants were not informed it was mandatory. The Respondent must adjust the rent account to reflect the deduction of food charges since the tenancy began.
  • The Tribunal determined that the rent increase notice, dated 14th February 2022, is defective and invalid. The Applicants do not owe any increased sums from the 4th of April 2022 onwards. The Respondent must adjust the Applicants' rent account to remove the increased amounts.

Monetary Damages

300.00

Legal Principles

  • The Tribunal ruled that unexplained or improperly itemized charges (e.g., meal charges) are not payable. The Respondent failed to demonstrate proper communication of the meal charge in the tenancy agreement or during the hearing, leading to its invalidation.
  • Section 13 of the Housing Act 1988 protects tenants from landlords increasing rent during the first year of the tenancy. The Tribunal determined that the Respondent's rent increase notice was invalid as it was served within 52 weeks of the tenancy start date (14th December 2021) on 14th February 2022, violating this statutory protection.

Cited Statute

  • Tribunals, Courts and Enforcement Act 2002
  • Housing Act 1988
  • Landlord and Tenant Act 1985

Judge Name

Shepherd

Passage Text

  • the Tribunal considers that the way forward is to simply determine that the rent increase notice, i.e. all aspects of that notice are defective and therefore the Applicants do not owe any increased sums from the 4th of April 2022 onwards.
  • the tribunal is left with no real alternative other than to determine that the food charge from the start of the tenancy to date are not payable.