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Housing Problems

Rent Assessment

 

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Contents

  1. Who are the Rent Assessment Committee?
  2. Can I apply to get my rent assessed by the rent assessment committee?
  3. How do I apply to get my rent assessed?
  4. What happens when I apply?
  5. How does the RAC decide what a reasonable rent is?
  6. Can the RAC increase my rent?
  7. How long will my rent stay at the level set by the RAC?
  8. Points to Remember
  9. Sources of Help and Advice

 

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1. Who are the Rent Assessment Committee?

Rent Assessment Committees (RAC's) are independent bodies which have the power to set rent levels for some tenants within the private rented property market.

RAC's are appointed by the Secretary of State for the Environment and the Lord Chancellor. The three people within the RAC, usually a lawyer, a property valuer and a lay person, are drawn from the 14 Rent Assessment Panels established within England and Wales.

If you think that you are paying too much rent for the property you are living in this site will guide you through the process of getting your rent level assessed by a RAC.

 

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2. Can I apply to get my rent assessed by the rent assessment committee?

If you live with the owner/agent you cannot make an application to the RAC.

Whether you can apply to get your rent assessed by a RAC is determined by what type of tenancy agreement you have. There are two main types of tenancies in the private sector:

  • Assured Shorthold Tenancies: If you have signed a contract or have a verbal agreement established after 28 February 1997 it will automatically be an Assured Shorthold Tenancy - unless you receive a written 'Notice' specifically stating otherwise.
  • Assured Tenancies: A contract signed after 28 February 1997 can only be an Assured Tenancy if a written 'Notice' has been served informing the tenant of such. Normally the contract will simply declare that it is an Assured Tenancy and there is no intention to create an Assured Shorthold Tenancy.

The most common type of contract signed by students in Leeds is the Assured Shorthold Tenancy.

 

I Have An Assured Shorthold Tenancy. When Can I Apply To The RAC?

  • If you signed/made a verbal tenancy agreement before 28 February 1997 an application to the RAC can only be made during the initial fixed term (agreed length of tenancy) and will not be available during subsequent agreements.
  • If you signed/made a verbal tenancy agreement on or after 28 February 1997 an application can only be made within the first 6 months of the tenancy. The RAC have the power to reduce or retain the rent at the same level. The rent will not be increased.
  • If you have come to the end of your fixed term tenancy and the landlord has not issued a replacement tenancy you can apply to the RAC within three months of receiving the written notice proposing rent changes.

 

I Have An Assured Tenancy. When Can I Apply To The RAC?

  • If the owner/agent serves a written notice to increase the rent you can apply to the RAC. The rent can not be increased during the first 12 months of the tenancy, unless there is a written agreement which states otherwise.
  • If you have come to the end of your fixed term tenancy and the owner/agent has not issued a replacement tenancy you can apply to the RAC within 3 months of receiving a written notice proposing rent changes

 

Your landlord can also apply to the RAC for an independent decision on the rent if your Assured or Assured Shorthold Tenancy has come to the end of it's fixed term and a replacement tenancy has not been issued.

If your fixed term tenancy has ended and the landlord has not issued a replacement tenancy he can only change the terms of your original contract if you agree.

Following the end of a fixed term tenancy the owner/agent can ask you to sign a new fixed term contract with different terms. If you do not agree with the terms offered you can refuse to sign the agreement.

  • If your original agreement was an Assured Shorthold Tenancy the owner/agent can now issue a notice to quit.
  • If your original agreement was an Assured Tenancy the owner/agent can only serve a notice to quit on specific grounds (listed in the Contracts leaflet available from the Welfare Services Office).

 

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3. How do I apply to get my rent assessed?

If you have an Assured Shorthold Tenancy fill in the form called "Application to a Rent Assessment Committee for a determination of a rent under an Assured Shorthold Tenancy" - available from the Welfare Services Office and the RAC.

If you have an Assured or Assured Shorthold Tenancy and you get a formal notice of a rent increase (which can only be issued after the fixed term has ended and at least 2 months notice of the increase has been given) and you do not agree with it, you must fill in the form called "Application referring a Notice proposing different terms for a Statutory Periodic Tenancy to a Rent Assessment Committee - available from the Welfare Services Office and the RAC.

If you have an Assured or Assured Shorthold Tenancy which is not for a fixed length of time (therefore making it a Periodic Tenancy) your owner/agent can increase the rent after the first year of the Tenancy. If you do not agree with it you must fill in the form called "Application referring a Notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee" - available from the Welfare Services Office and the RAC.

When you have established which application form is appropriate for your use it has to be filled in and sent with a copy of your Tenancy Agreement, if you have one, to the North Eastern Rent Assessment Panel in Leeds (address at the end of the booklet).

 

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4. What happens when I apply?

Once the RAC has received an application for rent assessment a notice is served on both the tenant and the owner/agent giving them at least 7 days to either make written representations or to request an oral hearing.

If no hearing is requested the RAC will consider the representations and give both parties the opportunity to comment on the other's case. A determination of the rent level will then be made and both parties notified.

Either party can request a hearing. 10 days notice of the hearing will be given. The hearing takes place in public and both parties can be represented by a solicitor (you will not receive legal costs for this) or a choice of representative.

Both sides can give evidence, call witnesses and cross examine witnesses called by the other party. A decision recorded in writing is then sent to both parties. It may be possible for a Welfare Services Officer to represent you at a hearing, contact the Welfare Service Office for advice.

The RAC will decide from what date the determined rent will be paid. It will usually be payable from the date which was stated in the notice of increase or from the date the application was made if within the first 6 months of an Assured Shorthold Tenancy. This determination is legally enforceable.

 

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5. How does the RAC decide what a reasonable rent is?

  • The RAC will determine a market rent for the property, i.e. the rent which could reasonably be expected to be obtained on the open market for a property let on similar terms.
  • Evidence will be gathered of market rents for comparable accommodation from sources such as valuers, estate agents, accommodation agencies and the classified advertisements in the local press, in order to establish the level of current market rents being charged. The RAC will consider the exclusive rent; that is excluding any water and service charges, but including any element of furniture if the property is furnished by the owner/agent. Questions answered within the application form will give the RAC a view of what type of accommodation the property in question is.
  • Although the members of the RAC are not obliged to inspect the property, they may decide to carry out an inspection to assist in setting the rent.

Typical weekly rent for a room in a shared house is around £48 this year. This will vary according to area and type of accommodation. Smaller houses e.g.2 bedrooms are likely to be more expensive per person and a single self contained flat may be up to £100 or more.

When assessing a rent the RAC must disregard the following:

  • The fact that the accommodation is tenanted. This means that the RAC must assume that the accommodation is vacant and calculate the rent as if the landlord were letting it on the open market.Any improvements carried out by the tenant which have increased the value of the property.
  • Any reduction in the value of the accommodation caused by the tenants failure to comply with any term of the tenancy, for example if the tenant has damaged the property.

 

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6. Can the RAC increase my rent?

If you have applied for rent assessment within the first 6 months of an assured shorthold tenancy the RAC cannot increase your rent. However The RAC could determine a market rent higher than that which the landlord requested if you are applying following a formal notice of rent increase after the end of a fixed term tenancy or during a periodic tenancy.

 

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7. How long will my rent stay at the level set by the RAC?

If your rent is set by the RAC your landlord cannot increase the rent until after the end of the fixed term. If you do not have a fixed term tenancy your landlord can propose that the rent is increased a year after the date on which the set rent was payable, unless you agree that he can put the rent up earlier.

 

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8. Points to Remember

  • Applying to the RAC for a determination of rent is free.
  • Appeals against a RAC's rent determination may only be made on a point of law i.e. the facts of the case cannot be disputed. When making assessments of rents the RAC may require relevant information to be provided by either the landlord or the tenant. Failure to produce this information can constitute a criminal offence punishable by a fine. (Currently up to a maximum of £1000.00).
  • If you wish your application to be withdrawn at any point you need to request this in writing. The RAC will then contact the landlord to inform him of your decision to end the application.

 

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9. Sources of Help and Advice

North Eastern Rent Assessment Panel
20th Floor
Sunley Tower
Picadily Plaza
Manchester
M1 4BE

Leeds University Union Student Advice Centre
First Floor of the Union Building
Tel:0113 3801300
Fax:0113 3801301
advice@luu.leeds.ac.uk

 

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Please be aware that we are only able to advise current or prospective students of Leeds University.

These pages are for guidance only and are not a substitute for diverse legislation that they cover. The information was checked and correct at the time of writing.

If you have any comments or queries about this page please email advice@luu.leeds.ac.uk.

© LUU Student Advice Centre September 2004.





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