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
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
Held: The application was dismissed — Section 14(2)(c) refers to ‘the
tenant’ and ‘the tenancy’ and is a clear indication that a rent assessment
committee are concerned only with the assured periodic tenancy over which they
have jurisdiction — The definitions of those terms in section 45 of the 1988
Act make no reference to a predecessor or statutory tenant or tenancy — The
draftsman of the statute could have inserted some formula in section 14(2)(c)
if the obligations of a predecessor in title were to be taken into account in
applying the disregard — It is quite clear from the provisions of Schedule 1 to
the Rent Act 1977 (as amended) and its companion provisions in section 39(5)
and (6) of the 1988 Act that there is a new interest created for the successor
upon the death of a statutory tenant — It is not simply a continuing interest —
It creates a new periodic tenancy as an estate in land which the previous
tenant’s statutory entitlement under the Rent Act was not — It is clear that
the effect of section 14(2)(c) is that the sins of the predecessor of the
tenant whose reference is being considered are not to be visited upon him —
There was no principle of construction, whether described as purposiveness or
fairness, which could override clear words of the statute
The following
case is referred to in this report.
Jones v Wrotham Park Settled Estates [1980] AC 74; [1978] 3 WLR
585; [1978] 3 All ER 527; (1978) 37 P&CR 289; 246 EG 223, [1978] 1 EGLR 58,
CA
This was an
application by notice of motion by the applicant, N&D (London) Ltd (a
subsidiary of the Northumberland & Durham Property Trust Ltd), the landlord
of a dwelling-house at 10 Chilham Close, Perivale, Middlesex, to set aside the
decision of a London rent assessment committee determining the rent of the
property at £5 per month.
Guy
Fetherstonhaugh (instructed by Church Adams Tatham & Co, of Reigate)
appeared on behalf of the applicant; the respondent did not appear and was not
represented; David Elvin appeared as amicus curiae.
Giving
judgment, AULD J said: By a reamended notice of motion dated August 2
1990 the Northumberland & Durham Property Trust Ltd, the landlord of a
dwelling-house at 10 Chilham Close, Perivale, Middlesex, seeks to set aside the
decision of a London rent assessment committee made on February 20 1990
determining the rent of that property and for an order remitting the matter to
the rent assessment committee.
The tenant is
a man named John Gadsdon. The applicant had requested a rent of £500 a month,
but the rent assessment committee considered that £5 a month was appropriate
because of the poor condition of the property. John Gadsdon had ‘inherited’ the
tenancy from his late father, who had let the property fall into disrepair.
There is now
only one ground of appeal. It is that the committee in determining that low
rent had failed to take into account the obligations of John Gadsdon’s father
to redecorate the interior and to keep it in good repair. John Gadsdon has not
appeared on this application; nor have the rent assessment committee in any
formal sense, not being parties to the application. However, in addition to
hearing counsel for the applicant, Mr Fetherstonhaugh, I have also had the
advantage of Mr Elvin as counsel instructed on behalf of the committee but
acting, for all practical purposes, as amicus.
The issue
concerns the construction of section 14(2)(c) of the Housing Act 1988. Section
14 provides for the determination of rent by a rent assessment committee on an
open market rent for an assured tenancy. The section appears in Part I of the
1988 Act, a part which the editors of the Encyclopedia of Housing Law and
Practice, at p 950, describe as introducing what is in substance, if not in
name, a new Rent Act, containing assured tenancies in place of protected
tenancies, and shortholds, and applicable to private landlords and housing
associations.
Provision is
made in section 13 of the Act for the increase of rent of assured periodic
tenancies, subject to the protection given by section 14(4)(a) to refer a
proposed increase to a rent assessment committee. Section 14 sets out the basis
upon which a rent assessment committee must approach its task in each case.
So far as
material, section 14 provides:
(1) Where, under subsection (4)(a) of section 13
above, a tenant refers to a rent assessment committee a notice under subsection
(2) of that section, the committee shall determine the rent at which, subject
to subsections (2) and (4) below, the committee 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 —
(a) which is a periodic tenancy having the same
periods as those of the tenancy to which the notice relates;
(b) which begins at the beginning of the new
period specified in the notice;
(c) the terms of which (other than relating to
the amount of rent) are the same as those of the tenancy to which the notice
relates;
(d) 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.
(2) In making a determination under this section,
there shall be disregarded —
(a) any effect on the rent attributable to the
granting of a tenancy to a sitting tenant;
(b) 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 —
(i) was carried out otherwise than in pursuance
of an obligation to his immediate landlord, or
(ii) 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
(c) any reduction in the value of the
dwelling-house attributable to a failure by the tenant to comply with any terms
of the tenancy.
The 1988 Act
is directed to the determination of an open market rent rather than a fair
rent, as under the regime of the Rent Acts. However, in the context of section
14(2)(c) of the 1988 Act, the clear Parliamentary intention appears to have
been to prevent a tenant under an assured periodic tenancy from securing a
lower rent than would otherwise be appropriate by causing or permitting the
property to fall into disrepair in breach of such terms of the tenancy as
require him to keep it in a good condition. But for that provision, the malign
or irresponsible tenant could artificially reduce the appropriate figure for
open market rent for the property and thus pay less rent than would otherwise
be appropriate having regard to the nature of the property and the terms of his
tenancy.
The facts
here, giving rise to the question whether under section 14(2)(c) John Gadsdon
was entitled to have the breaches of obligation by his father disregarded, are
as follows.
His father,
Arthur Gadsdon, was granted a lease of the property on July 29 1983 for five
years at a monthly rent of £22.58. The property is a semi-detached house,
consisting of five rooms, kitchen, bathroom and lavatory, and a front and back
garden, in a cul-de-sac of modest houses near Perivale tube station. Under the
lease the father, as tenant, undertook by clause 2(iii) 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 throughout114
the term and in such repair to yield up the same at the determination of the
tenancy’. He was also obliged under clause 2(v) ‘to permit the landlord [the
applicant] and its servants or agents with or without workmen at all reasonable
times to enter and examine the premises and upon notice given by the landlord
to repair in accordance therewith’.
For its part,
the landlord, by clause 3(i) of the lease, undertook to keep the exterior and
structure of the premises in good repair.
Both of those
provisions in the lease must now be read subject to section 11 of the Landlord
and Tenant Act 1985 which, together with sections 32 and 33 of the Housing Act
1961, which it replaced, implied into the lease and the statutory and assured
tenancies that followed it a covenant by the landlord to keep in repair and in
proper working order the installations in the dwelling-house for the supply of
water, gas and electricity, for sanitation and for space heating and heating
water. In addition, the landlord’s repairing covenant is to be construed as a
covenant to repair within a reasonable time of notice of the disrepair being
given by the tenant.
Clause 4 of
the lease recited that, upon the expiration of the five-year term created by
it, the landlord would act in relation to the tenant as if the agreement
constituted a regulated tenancy as defined in the Rent Act 1977.
On April 29
1988, shortly before the expiration of the five-year term, the landlord applied
for registration under the Rent Acts of a fair rent. The rent proposed was £30
a week to apply from July 29 1988, the expiry date of the lease. There was an
inspection of the house on or about June 22 1988, as a result of which, on
August 15 1988, the rent officer notified the landlord’s agents that he had
registered the new rent at the rate sought of £30 a week to take effect from
August 15 1988.
On July 7 1989
Arthur Gadsdon died. His son, John Gadsdon, then became entitled to an assured
tenancy by succession under amended provisions of the Rent Act 1977 and under
provisions in the 1988 Act to which I shall refer. On November 25 1989 the
landlord served a notice under section 13(2) of the Housing Act 1988 proposing
an increase in rent from £30 a week to £500 a month. John Gadsdon, in a
document which is undated, referred the matter to a London rent assessment
committee. Pending the determination of that reference, the landlord’s agent
wrote to the rent assessment committee on December 13 1989, informing them of
certain matters, which included the following: first, that in the view of the
landlord’s agents the landlord was entitled to a market rent for the house and
their initial inquiries with a local letting agency indicated a figure of not
less than £500 a month; second, that they had not been able to gain access to the
premises as the tenant had not kept the gardens and interior in good tenantable
order and that, despite several requests and visits to the premises, they had
been unable to carry out any repairs that might be required to the structure of
the building.
No hearing was
requested by either party. An inspection by the members of the committee took
place on Wednesday January 31 1990.
The committee
made and delivered their determination of rent under section 14 of the 1988 Act
on February 20 1990. They determined a rent of £5 a month. Under the heading
‘Remarks’ in the determination notice the following summary was given:
House
practically uninhabitable internally;
No water to
bath, basin or wc;
Cold water
only to kitchen sink;
No electricity
to rear of house, on either ground or first floor;
WC choked and
unusable;
Plaster has
fallen off ceiling in rear ground-floor room and off wall of kitchen and is
defective around almost all windows;
Damp
penetration around almost all windows;
Metal windows
rusting and leaking;
External
condition fair but gardens run wild.
In detailed
reasons prepared by the committee, dated March 12 1990, those matters were
amplified, so far as material, as follows:
3. The
Committee found Chilham Close to be in a cul-de-sac very near Perivale
Underground railway station and line, one of a group of similar modest 1930s
semi-detached houses with good front and rear garden space. The garden of No 10
was so overgrown with brambles that it was difficult to negotiate the path to
the front door. The roof and the external structural condition of the house
seemed to be fair but paintwork was shabby and windows in need of attention.
4. We set
down under ‘Remarks’ in our Decision the principal defects found to the
interior of the property. In sum, every room was suffering from serious plaster
deterioration and dampness and the functioning utilities comprised electricity
to the front of the house and one cold water tap to the kitchen sink. Except in
the front ground-floor room there was no sign of normal tenant-like use and
care.
5. Under
section 14 of the Housing Act 1988 we are bound to determine a rent at which we
consider that the dwelling-house concerned might reasonably be expected to be
let in the open market by a willing landlord under the assured tenancy. We are
to disregard any effect on the rent attributable to the granting of a tenancy
to a sitting tenant (section 14(2)(a)) 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 (section 14(2)(c)). According to section 39, the ‘successor’ to
a previously regulated tenancy becomes entitled to an assured tenancy. That
tenancy shall be a periodic tenancy ‘arising by virtue of this section’
(section 39(1)(5) and one:
section
39(6)(a) ‘taking effect in possession immediately after the death of the
protected or statutory tenancy . . .’
Section
39(6)(b) ‘deemed to have been granted to the successor by . . . the landlord of
the predecessor under his tenancy’, and
section
39(6)(e) ‘under which, subject to sections 13-15 above, the other terms are the
same as those on which, under his tenancy, the predecessor occupied the
dwelling-house immediately before his death’.
6. Our
interpretation of these provisions was that, unlike the position of a successor
under the unamended Rent Act 1977, the successor under the Housing Act 1988
holds a new tenancy, if on the terms of the old. The most important implication
in the present case was that the disregard of defects due to failure by ‘the
tenant’ applied only to failure by the new successor tenant, not to any default
of the predecessor.
7. It was
also clear that section 11 of the Landlord and Tenant Act 1985 applied and
overrode with statutory landlords’ responsibilities the terms of the agreement
between the original parties in relation to repair.
8. In our
opinion the internal disrepair of this house was of long standing and could not
be attributed, except in very small measure, to the period of the present new
tenancy. It would not have been reasonable to expect the present tenant to
carry out his decorating responsibilities under the agreement terms still
applying, given the decay and dysfunction in the structure (internal) and
amenities for which the landlords were liable under the agreement or under
section 11 of the Landlord and Tenant Act 1985. Another of the terms of the
1983 agreement was that the landlord company was permitted at all reasonable
times to enter and examine the premises and upon notice given by the company to
repair in accordance therewith. It would seem that for many years the company
could have enforced inspection and repair, but had not done so.
9. We
considered that in its present deplorable condition this house was dangerous to
health and virtually unlettable ‘in the open market’, the yardstick required by
section 14: a tenant could not reasonably be expected to come forward, except
on the basis of an extended ‘rent free’ period, because he would require a
considerable amount of time, effort and expenditure to bring the house in
reasonably habitable condition and probably also to ensure that the landlords
carried through their responsibilities in achieving that outcome.
10. We
therefore determined a rent of £5 per month, exclusive of rates, effective from
December 1 1989, the beginning of the new period specified in the landlords’
notice.
The question
is whether, if a person becomes an assured tenant by succession by virtue of
section 39(5) and (6) of the 1988 Act, a rent assessment committee are required
under section 14(2)(c) to disregard any failure by his predecessor to comply
with the terms of the tenancy as well as by him when assessing an open market
rent.
Here, John
Gadsdon, the present tenant, succeeded his father who was protected under the
Rent Acts, but John Gadsdon is an assured tenant under the Housing Act 1988.
That is achieved by amendment of Schedule 1 to the Rent Act 1977 and by the
provisions in section 39(5) and (6) of the 1988 Act.
As to the 1977
Act, para 3 of Schedule 1 (as amended by Schedule 4, Part I, to the Housing Act
1988) reads, so far as material, as follows:
Where a
person who was a member of the original tenant’s family was residing with him
at the time of and for the period of 2 years immediately before his death then,
after his death, that person or if there is more than one such person such one
of them as may be decided by agreement, or in default of agreement by the
county court, shall be entitled to an assured tenancy of the dwelling-house by
succession.
Para 6 (as
amended) provides:
(1) Where a person who —
(a) was a member of the original tenant’s family
immediately before that tenant’s death, and
(b) was a member of the first successor’s family
immediately before the first successor’s death,
was residing
in the dwelling-house with the first successor at the time of, and for the
period of 2 years immediately before, the first successor’s death, that person
or, if there is more than one such person, such one of them as may be decided
by agreement or, in default of agreement, by the county court shall be entitled
to an assured tenancy of the dwelling-house by succession.
115
Those
provisions as they now appear are to be compared with their earlier form. The
concluding words of para 3 used to read ‘shall be the statutory tenant if and
so long as he occupies the dwelling-house as his residence’.
Para 6 was in
much shorter form:
If the first
successor was a man who died leaving a widow who was residing with him at his
death then, after his death, the widow shall be the statutory tenant if and so
long as she occupies the dwelling-house as her residence.
Corresponding
provisions are to be found in section 39(5) and (6) of the 1988 Act. So far as
material they read as follows:
(5) In any case where, by virtue of any
provisions of —
(a) Part 1 of Schedule 1 to the Rent Act 1977,
as amended in accordance with subsection (2) or subsection (3) above, or
(b) section 4 of the Rent (Agriculture) Act
1976, as amended in accordance with subsection (4) above,
a person (in
the following provisions of this section referred to as ‘the successor’)
becomes entitled to an assured tenancy of a dwelling-house by succession, that
tenancy shall be a periodic tenancy arising by virtue of this section.
6. Where, by
virtue of subsection (5) above, the successor becomes entitled to an assured
periodic tenancy, that tenancy is one —
(a) taking effect in possession immediately after
the death of the protected or statutory tenant or protected occupier (in the
following provisions of this section referred to as ‘the predecessor’) on whose
death the successor became so entitled
(b) deemed to have been granted to the successor
by the person who, immediately before the death of the predecessor, was the
landlord of the predecessor under his tenancy;
(c) under which the premises which are let are
the same dwelling-house as, immediately before his death, the predecessor
occupied under his tenancy;
(d) under which the periods of the tenancy are
the same as those for which rent was last payable by the predecessor under his
tenancy;
(e) under which, subject to sections 13 to 15
above, the other terms are the same as those on which, under this tenancy, the
predecessor occupied the dwelling-house immediately before his death; and
(f) which, for the purposes of section 13(2)
above, is treated as a statutory periodic tenancy;
and in
paragraphs (b) to (e) above ‘under his tenancy’ in relation to the predecessor,
means under his protected tenancy or protected occupancy or in his capacity as
a statutory tenant.
Mr
Fetherstonhaugh, on behalf of the landlord, argued that section 14(2)(c) of the
1988 Act should be read so as to require the rent assessment committee, in
determining an open market rent, not only to disregard any breach of the
tenancy agreement by the current tenant but also any breach of the tenancy by
his statutory predecessor. He accepted that, for the provision to be so
construed, it requires the reading into it after the word ‘tenant’ the words
‘or the tenant from whom he derived his tenancy’. Mr Fetherstonhaugh
acknowledged in making that submission that there are formidable obstacles to
it, not least of which are the plain words of the provision as it stands.
However, he urged that the statute should be construed in a purposive way to
give it the effect for which he contended.
He said that
there was nothing in the language of the Act which required the disregard in
section 14(2) to be restricted to the tenant’s current tenancy. He said that to
do so would produce a contrary result, in that where a statutory periodic
tenancy arises on the coming to an end of the fixed-term tenancy, the same
tenant’s failures under the fixed term would be disregarded. He said that if,
on the other hand, section 14(2)(c) were to be construed in the way suggested
by him, so as to bring within the ambit of the disregard the tenant’s defaults
under previous tenancies, it would be logical and fair to consider not only
those defaults of the tenant but also those of his predecessors in title. I do
not use that expression in any particular technical sense.
At the heart
of his submission lay the complaint that if the section were not interpreted in
the way he suggested, it would result in a landlord’s being penalised for its
tenant’s predecessor’s default. He pointed out that that would be contrary to
one of the main purposes of the Housing Act, which was to arrest the decline in
housing in the private rental sector by encouraging the landlord into the
market to enable him to achieve a reasonable market rent for his rented
property. Shorn of legal niceties, he said that there is no reason why the
landlord here should suffer a lower rent because of the state of the premises
which, at least in part, appears to have been attributable to John Gadsdon’s
father’s neglect. He said, by way of conclusion, that, in so far as a literal
construction of the provisions dictate or might dictate such a result, the
court ought to adopt a purposive construction to achieve what Mr
Fetherstonhaugh described as a fairer result.
Mr Elvin drew
my attention, on the subject of a purposive approach to legislation, to the
words of Lord Diplock in Jones v Wrotham Park Settled Estates
[1980] AC 74* at p 105. Lord Diplock identified three criteria that he
considered required fulfilment before one could embark upon a purposive
interpretation of a statute. This is what he said:
My Lords, I
am not reluctant to adopt a purposive construction where to apply the literal
meaning of the legislating language used would lead to results which would
clearly defeat the purposes of the Act. But in doing so the task on which a
court of justice is engaged remains one of construction; even where this
involves reading into the Act words which are not expressly included in it. Kammins
Ballrooms Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850
provides an instance of this; but in that case the three conditions that must
be fulfilled in order to justify this course were satisfied. First, it was
possible to determine from a consideration of the provisions of the Act read as
a whole precisely what the mischief was that it was the purpose of the Act to
remedy; secondly, it was apparent that the draftsman and Parliament had by
inadvertence overlooked, and so omitted to deal with, an eventuality that
required to be dealt with if the purpose of the Act were to be achieved; and
thirdly, it was possible to state with certainty what were the additional words
that would have been inserted by the draftsman and approved by Parliament had
their attention been drawn to the omission before the Bill passed into law.
Unless this third condition is fulfilled any attempt by a court of justice to
repair the omission in the Act cannot be justified as an exercise of its
jurisdiction to determine what is the meaning of a written law which Parliament
has passed. Such an attempt crosses the boundary between construction and
legislation. It becomes a usurpation of the function which under the constitution
of this country is vested in the legislature to the exclusion of the courts.
*Editor’s
note: Also reported at (1978) 246 EG 223, [1978] 1 EGLR 58.
Mr Elvin said
— and it is common ground — that the purpose of the Act was to regulate open
market rent between landlord and tenant and to revitalise the letting market
and to attract landlords to it. He referred me in that connection to the
Government White Paper, Housing: The Government’s Proposals, Cmd 214,
presented to Parliament in September 1987.
As to the
second of Lord Diplock’s criteria, Mr Elvin submitted that the Housing Act 1988
had not been carelessly drawn. Mr Fetherstonhaugh agreed with that and so do I.
As I shall indicate in a moment, it has clearly been drawn with great care and
in such a way as to distinguish it from comparable problems that had arisen
under the regime of the Rent Acts.
In any event,
as Mr Elvin pointed out, there is no harm to a landlord in being limited to a
disregard of the defaults of a current tenant because he had his remedy to
enforce the identical provisions, subject only to section 11 of the Landlord
and Tenant Act 1985, against that tenant’s predecessor in title. Here, the
landlord could have taken steps over a period of years to require John
Gadsdon’s father to comply with the tenancy so that the property did not
deteriorate into that state, but the landlord did not do so. The same would
apply if John Gadsdon himself had, under an earlier tenancy, allowed the property
to fall into disrepair.
Accordingly,
Mr Elvin submitted, there is no justification for reading into the section
words which are not there.
Mr Elvin went
on to construe the provision itself and those related to it. First, section
14(2)(c) refers to ‘the tenant’ and ‘the tenancy’, which, Mr Elvin submitted,
is a clear indication that a rent assessment committee are concerned only with
the assured periodic tenancy over which they have jurisdiction. He drew
attention to the fact that the definitions of ‘tenant’ and ‘tenancy’ in section
45 of the 1988 Act make no reference to a predecessor or statutory tenant or
tenancy. He emphasised the contrast in that respect between the 1988 Act and
the unamended provisions, to which I have already referred, of Schedule 1, Part
I to the Rent Act 1977, paras 3 and 6, in their use of the general term
‘statutory tenant’.
Mr Elvin also
contrasted the simple words of section 14(2)(c) with the provisions as to the
determination of a successor’s rent under section 70(3) of the Rent Act 1977.
That provides:
There shall be
disregarded —
(a) any disrepair or other defect attributable
to a failure by the tenant under the regulated tenancy or any predecessor in
title of his to comply with any terms thereof;
(b) any improvement carried out, otherwise than
in pursuance of the terms of the tenancy, by the tenant under the regulated
tenancy or any predecessor in title of his; . . .
116
(c) If any furniture is provided for use under
the regulated tenancy, any improvement to the furniture by the tenant under the
regulated tenancy or any predecessor in title of his or, as the case may
be, any deterioration in the condition of the furniture due to any
ill-treatment by the tenant, any person residing or lodging with him, or any
sub-tenant of his.
(Emphasis
supplied.)
Mr Elvin
submitted that it is inconceivable that the draftsman would not have inserted
some such formula in section 14(2)(c) of the 1988 Act if it had been intended.
Finally, Mr
Elvin and Mr Fetherstonhaugh drew my attention to a contrasting provision
within section 14 itself which militates against the construction for which the
latter contended. Section 14(2)(b) expressly provides that, in certain
circumstances, any increase in the value of a dwelling-house attributable to an
improvement carried out ‘by a person who at the time it was carried out was the
tenant’ is to be disregarded. This formula, which is to be contrasted with the
simple reference in section 14(2)(c) to ‘the tenant’ was clearly intended to
achieve the disregard of a predecessor tenant’s improvements works. A similar
formula would have been employed in section 14(2)(c) if it had been intended to
disregard any deterioration in tenanted property because of a failure by a
current tenant’s predecessor to comply with any of the terms of the tenancy.
In my
judgment, the submissions made by Mr Elvin on those matters of construction are
overwhelming. If more is needed, it is quite clear from the provisions of
Schedule 1 to the Rent Act 1977 (as amended) and its companion provisions in
section 39(5) and (6) of the 1988 Act carrying them through that there is a new
interest here created for the successor. It is not simply a continuing
interest. It creates a new periodic tenancy as an estate in land which the father’s
statutory entitlement under the Rent Act was not. If one runs down the various
subparagraphs of section 39(6), it can be seen that most or all of them would
have been unnecessary if what had been created by those provisions was a
continuing and not a new tenancy.
As a matter of
construction, therefore, it is clear that the effect of section 14(2)(c) is
that the sins of the predecessor of the tenant whose reference is being
considered are not to be visited upon him.
Mr
Fetherstonhaugh suggested that that is unfair. He submitted that a family
successor should not start with a clean slate so as to fix the landlord with
what may be years of neglect. However, if the landlord is vigilant in enforcing
the rights that are available to him under each tenancy agreement, he should
not be faced with years of neglect when a statutory ‘succession’ of the tenancy
takes place in this way.
As to
fairness, Mr Elvin commented first that there is no canon of construction that
a statute is to be construed fairly to its plain words. And he asked: how is
fairness to be identified and employed as a tool in the construction of a
statute such as this? For instance, why
should a tenant be held responsible for breaches by a former tenant even though
he may be a member of his or her family?
He points out here that John Gadsdon is not benefiting from his own
breach because the breaches have been found by the rent assessment committee to
be substantially those of his father. He has an entirely new tenancy and a
different status.
I should add
that, from the reasons given by the committee for their determination, it
cannot be said the responsibility for the neglect should have been apportioned
in some different way. The committee were amply justified in the conclusion
which they reached on the facts, that the internal disrepair was of long
standing and could not be attributed, except in very small measure, to John
Gadsdon and that he could not reasonably have been expected to do anything
about it given the structural defects which it was the landlord’s contractual
and statutory duty to remedy.
Accordingly,
the application is contrary to the plain words of the statute, and there is no
principle of construction, whether described as purposiveness or fairness,
which could properly override those words. The application is dismissed.