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N & D (London) Ltd v Gadsdon

Decision of London Rent Assessment Committee — Applicant landlord had requested a rent of £500 per month — Committee determined a rent of £5 per month — Application to set aside decision of committee on the ground that the low rent failed to take into account the obligations of the respondent tenant’s predecessor to redecorate and keep the premises in good repair

The applicant
is the landlord of a residential dwelling-house — The respondent tenant
succeeded to the tenancy of the premises previously held by his late father —
His late father had let the premises fall into disrepair — The landlord applied
to a London Rent Assessment Committee under section 14 of the Housing Act 1988
for the determination of an open market rent for an assured tenancy — Section 14(2)(c)
provides that in determining the rent the committee is to disregard ‘any
reduction in the value of the dwelling-house attributable to a failure by the
tenant to comply with any terms of the tenancy’113 — The present tenant’s father had been granted a lease in July 1983 and agreed
to ‘re-decorate the interior of the premises as often as may reasonably be
necessary and to keep in good repair the glass in and locks on all doors and
windows and the sanitary apparatus waste water and drain pipes throughout the
term and in such repair to yield up the same at the determination of the
tenancy’ — A rent was registered for the premises at £30 per week from August
15 1988 — The present tenant’s father died in July 1989 — The landlords had
been unable to gain access to the premises or to carry out any repair — Neither
party requested a hearing before the committee — The committee visited the
premises and concluded that the premises were in a deplorable condition,
dangerous to health and were virtually unlettable in the open market — They
determined a rent of £5 per month — The committee concluded that the internal
disrepair was long standing and could not be attributed, except in a very small
measure, to the period of the present tenancy

In seeking to
set aside the decision of the committee, it was submitted on behalf of the
landlord that section 14(2)(c) of the 1988 Act required the committee to
disregard any failure by the present tenant’s predecessor to comply with the
terms of the tenancy as well as by the present tenant

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