First-tier Tribunal Adjusts Market Rent Based on Property Condition

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. JD/LON/00BK/MNR/2025/0906

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

Address of Premises The Tribunal members were FT 3 29 SOUTHWICK STREET LONDON [POSTCODE]

[NAME] [NAME] [NAME]

Landlord [RESPONDENT] [COMPANY]

[APPELLANT] [NAME]

1. The rent is: £ 1610.00 Per MONTH (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 12TH SEPTEMBER 2025

*3. The amount included for services is/is

negligible/not applicable N/A Per

*4. Service charges are variable and are not included

[NAME] [NAME] of Decision 16TH JANUARY 2026

5. Date assured tenancy commenced 10TH OCTOBER 2016

6. Length of the term or rental period MONTHLY

7. Allocation of liability for repairs LANDLORD REPAIRS

8. Furniture provided by landlord or superior landlord VARIOUS as described

9. Description of premises A ONE BEDROOMED CONVERTED FLAT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : JD/LON/OOBK/MNR/2025/0960

Hearing Type : No hearing/ by way of written representations

Property : [ADDRESS], [POSTCODE]

Applicant: [redacted] : In person

Respondent: [redacted] : None

Type of [NAME] : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [NAME]. [NAME]. [NAME] [NAME] Management

[NAME] of Hearing : 16th January 2026

Date of Inspection : 16th January 2026

Date of Full Reasons : 26th January 2026 2nd February 2026

STATEMENT OF FULL REASONS ON AN [NAME] FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988.

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REASONS Background

1. On 27th July 2025, the landlord served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above property from the passing rent of £1,408.67 per month to £1,650 per month.

2. On 29th August 2025, the [APPELLANT] made an [NAME] to the Tribunal for the determination of a market rent.

3. The original tenancy was believed to have begun 10th October 2016.

4. The [APPELLANT] occupies the property by way of an Assured Periodic Tenancy.

5. By way of a letter dated 5th November 2025 the Tribunal issued directions. These required the landlord to provide details of evidence on which they wished to rely by way of reply by 24th November 2025. The [APPELLANT] was directed to do the same by 8th December 2025 and the landlord was given until 15th December 2025 for his response thereto.

6. The Tribunal wrote to the parties confirming details for an inspection to take place on 16th January 2025.

7. Both parties took the opportunity to make submissions.

8. In consideration of the Market rental value of the subject property, the Tribunal has taken into consideration all documentation before it, including various letters and the reply forms returned by parties.

9. In the [NAME] form, the [APPELLANT] confirms the accommodation as a self- contained flat with an open-plan lounge-kitchen, bathroom, and one bedroom. He states that the original tenancy included a double wardrobe, chest of drawers, fridge, microwave, and a second-hand sofa, but says that the property has had little maintenance since the original occupation, but that a number of repairs are required. In support of his contention, the [APPELLANT] provides a number of photographs, both within the [NAME] and in their subsequent statement, dated 29th August 2025.He confirms that he has undertaken no improvements .

10. A number of photographs are provided .These show, among other things, cracks in kitchen walls, a sagging bathroom ceiling, the lack of a cupboard enclosure to the boiler, mould, areas of defective plaster and damp penetrating above the

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bathroom ceiling and the lack of insulation there, the poor condition of the bath panel, and poor external decoration .By way of comparable evidence for the rent the [APPELLANT] provides a list of comparables of properties from [NAME] and [NAME].

11. In addition, in the [APPELLANT]’s statement, the [APPELLANT] points out that the tenancy actually began in 2003, and advised that they have received an eviction notice. In addition to other defects referred to in the [NAME], the [APPELLANT] names a defective extractor and window, a lack of storage, the poor quality of repairs, and evidence of pest infestation.

12. In the landlord’s Reply form the landlord says that they are happy to have the matter dealt with by written representation only, and confirm that they do not need a hearing, nor an inspection of the property, but do confirm the accommodation and that it is on the third floor. They also confirm that it benefits from central heating but that there is no double glazing, nor garage nor a parking space.

13. As far as the boiler is concerned, the landlord states that it is a top of the range boiler, regularly serviced, and that they provided a new oven in 2021, with a new hob and fridge in 2024.

14. It is the landlord’s contention that the [APPELLANT] has not reported any disrepairs, and that the property is in an attractive location, in an attractive house with good transportation links.

15. The landlord states that the [APPELLANT]’s comparables are all of studio flats [whereas the subject property is a one bedroom] and comments specifically on some of the comparables.

16. It is noted that the London Borough of Westminster have been involved, and that they inspected the property, reporting on disrepair.

17. It is noted that the landlord also provides a history document, detailing some of the issues between the parties, and particularly referring to the relationship that may exist and correspondence that has passed between them in relation to this.

18. This is not an issue that the Tribunal will take into account in [NAME] an assessment of the market rent of the property.

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19. Finally, the Tribunal note that the landlord has provided an extensive number of photographs of the property between 2016 and 2022. While these are of interest, it is the condition of the property on the date of inspection that is of concern to the Tribunal.

20. On 14th January 2026, on the basis of paper submissions and without a hearing, but with the benefit of an inspection , the Tribunal determined the Market rent of the above property at £1,610 per calendar month.

Hearing

21. There was no hearing.

Hardship

22. No submissions on hardship were received.

Inspection

23. The Tribunal attended the property to undertake an inspection on 16th January 2026.

24. It was apparent that the property was originally constructed as a single residential dwelling over commercial premises on the ground floor, and has subsequently been converted into individual flat units.

25. The accommodation comprises a flat on the third floor, accessed without lift, and comprising a combined lounge-kitchen area, bedroom and bathroom/WC. There is no garage or parking space.

26. During the inspection, the [APPELLANT] was present as was a representative for the landlord, although they were not given access to the flat by the [APPELLANT].

27. On arrival the Tribunal notified the parties that they should be provided with access to all possible areas of the property but that she could not provide any additional evidence nor engage in conversation about the property nor the rental value thereof.

28. All rooms were accessible.

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29. The lounge-kitchen area is considered to be relatively small for a combined facility.

Condition

30. On arrival, the Tribunal inspected the exterior of the property and found it to be in reasonable condition for its age and character, requiring some decoration but nothing that is considered urgent although the freeholders are urged to have a closer examination of the front parapet.

31. Internally, the common parts were felt to be rather tired. The subject property is on the third floor without lift. It was noted specifically that the last flight of stairs leading thereto was narrow with a particularly awkward, indeed, dangerous stair configuration immediately outside the subject property’s front door.

32. Internally, the Tribunal’s opinion was that the property was old-fashioned and in need of refurbishment and upgrading. It was noted that walls are covered in woodchip paper, a throwback to the 1980s and something of a fire hazard.

33. The cracks referred to by the [APPELLANT] are fairly small and insignificant .There is some evidence of peeling paper, evidence of damp under the bedroom window, and evidence of damp and defective/blown plaster above the bathroom ceiling, [which is a false suspended ceiling] .The Tribunal are also aware that there is a lack of modern facilities in the bathroom and that the room accommodating the lounge-kitchen is relatively small for a combined facility. It is noted that there is access to the roof through a small access door located above the bathroom, which will make this area cold.

34. Some evidence of condensation was noted, as was peeling paper.

The Law

35. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the property, matters contained within the rent, repairing obligations, etc. This means that issues such as the tenants ability to pay the rent or bills associated with the property are not a consideration for the tribunal in assessing the rent.

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Valuation

36. Following consideration of the written and photographic submissions given by both parties and taking into account the Tribunal’s inspection and using its own knowledge and experience of the rental market in the central London area , the Tribunal finds that the market rental value of the property, if it was in good condition, would be £2,000 per month.

37. Taking into account the lack of modernisation and the general disrepair, the Tribunal considers it necessary to adjust that market rental value to reflect specifically the following:

i) Old-fashioned and dated fittings and tired decoration. ii) Evidence of damp and mould within the flat. iii) Evidence of blown plaster, damp, and cold spotting around the loft hatch above the bathroom ceiling. iv) Generally difficult to access.

38. Taking these and other more general factors into consideration, the Tribunal finds that it is necessary to make a 19.5% deduction in the market rental value of the property to reflect its condition and lack of modernisation.

Valuation Calculation

39. Open market rent £2,000 per month

Deduction for adjustments detailed above 19.5% = £390 per month

Adjusted rent £1,610 per month

The Tribunal therefore determines that the market rental value of the property should be set at a figure of £1,610 per month.

Hardship

40. No submissions on hardship were received.

Chairman:

[NAME]

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Date: 26th January 2026 2nd February 2026

Commented [CB1]: Change date as appropriate.

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ANNEX OF RIGHTS FOR MARKET RENTS

By Rule 36(2) of the Tribunal procedure, (First-tier Tribunal) (Property Chamber) Rules 2013 the Tribunal is required to notify the parties about any right of appeal they might have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written [NAME] for permission must be made to the First-tier Tribunal at the regional office which has been dealing with this case

The [NAME] for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the Decision to the [NAME].

If the [NAME] is not made within the 28 day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit.

The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property, and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).