Yi vs Hobbs & Alaike

This case involved an appeal by Ms. Jenny Yi against rent repayment orders made by the First-tier Tribunal (FTT) requiring her to repay rent to her tenants, Mr. Nick Hobbs and Mr. Kel Alaike, at 1 Observatory Mews, London E14.

TLDR:

• Ms. Yi appealed against rent repayment orders made by the FTT.
• The appeal addressed the treatment of rent arrears and arithmetical errors.
• The Upper Tribunal corrected the FTT's calculations and adjusted the amounts payable.

The case arose from rent repayment orders made by the FTT requiring Ms. Yi to repay rent to her tenants, Mr. Hobbs and Mr. Alaike. The FTT's order was based on the fact that the property managed by Ms. Yi was not licensed as a House in Multiple Occupation (HMO) as required by law.

The property in question is a five-bedroom house let to individuals who share a kitchen. The registered proprietor is Ms. Yi's husband, who resides in China, while Ms. Yi managed the property and collected rent. The tenants applied for rent repayment orders, claiming that Ms. Yi had committed the offence of managing or controlling the property without the required HMO license.

The FTT found that the property should have been licensed during the tenants' occupancy and was not licensed until June 2022. The FTT ordered Ms. Yi to repay rent to Mr. Hobbs and Mr. Alaike, but Ms. Yi appealed against these orders, challenging the treatment of rent arrears and pointing out arithmetical errors in the calculations.

The Upper Tribunal reviewed the FTT's decision, focusing on the amounts ordered to be repaid. The FTT had deducted rent arrears from the starting figure before applying a 50% reduction to reflect Ms. Yi's culpability. The Upper Tribunal found this approach problematic and corrected the calculations.

For Mr. Hobbs, the Upper Tribunal adjusted the amount payable by deducting the full amount of rent arrears after applying the 50% reduction. The corrected amount payable to Mr. Hobbs was calculated as £1,608.92.

For Mr. Alaike, the appeal was based on arithmetical errors, and the Upper Tribunal agreed with Ms. Yi's points. The corrected amount payable to Mr. Alaike was calculated as £3,420.06.

The Upper Tribunal allowed the appeal in respect of both orders and substituted its own decisions, correcting the amounts payable to the respondents. The sums are payable immediately, and the FTT's order for Ms. Yi to pay the FTT application fee remains unappealed.

Legal representatives: Ms. Jenny Yi (self-represented), Mr. Muhammed Williams (for the respondents, representing the London Borough of Tower Hamlets)

Judicial Panel: Upper Tribunal Judge Elizabeth Cooke

Case Citation Reference: [2024] UKUT 155 (LC)