First-tier Tribunal Adjusts Market Rent Due to Property Issues

OUTCOME: Allowed in Part

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/30UH/MNR/2026/0078

[ADDRESS], [POSTCODE]

[NAME] [COUNSEL]

Tenant’s Representative

Landlord

[COUNSEL]

Landlord’s Address

20 Edmunds Vale, Durham, [POSTCODE]

Landlord’s [COUNSEL] [RESPONDENT] of Application 23 February 2026

Type of Application Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal Members Tribunal Judge Steer & Mr J Faulkner FRICS

Date of Decision

19 May 2026

Rent Determined

£1,150.00 per calendar month

Date the new rent takes effect

28 February 2026

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REASONS FOR THE DECISION

Background

1. On 22 January 2026, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1200.00 per calendar month(pcm) in place of the existing rent of £1094.50 pcm to take effect from 28 February 2026.

2. On 23 February 2026, under Section 13(4)(a) of the Housing Act 1988, the Tenant referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

3. The assured tenancy commenced on 31 August 2021 for a term of 6 months. The rental period is monthly.

Allocation of Repairs between Landlord and Tenant.

4. As per section 11 of the Landlord and Tenant Act 1985.

Services Charges or furniture provided by Landlord (other than carpets and curtain and white goods specified below) and the costs relating to the same.

5. There are no service charges payable in respect of the Property. The Property was rented on a ‘fully furnished’ basis.

Liability for Council Tax

6. The Tenant is responsible for the payment of Council Tax in respect of the Property. The rent determined is exclusive of Council Tax.

Any other terms of the tenancy taken into consideration in determining the rent.

7. None

Inspection/Hearing

8. The Tenant requested an inspection of the Property which was refused by the Tribunal for the reasons detailed in their letter of 27 March 2026. It follows that there was not an inspection of the Property or an oral hearing. The Tribunal has considered this case on the basis of the papers provided by the parties and its own knowledge and specialist expertise.

The Property

9. The Property is a 2-storey modern semi-detached house with a yard which is let on ‘fully furnished’ terms. The accommodation compromises a living room, kitchen and w/c on the ground floor and 3 bedrooms and a bathroom with w/c on the first floor.

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Evidence

10. Both the Tenant and the Landlord returned the Tribunal’s Reply forms.

The Tenant.

11. The Tenant made the following comments:

a) There has been a long-standing water leak over several years affecting the bathroom area. Although temporary repairs have been undertaken, the issue is not resolved. Despite the bathroom remaining usable, the leak has caused a deterioration to the internal surfaces of the bathroom and affects the normal use of the bathroom. Further, the persistent leak has caused damage t the ground floor ceiling and the internal walls; and

b) There are issues with the functioning of the hob and the washing machine.

12. In terms of rental evidence, the Tenant has provided a number of comparable properties in the locality to the subject property each advertised to let on Right Move which range from £825pcm to £1200pcm.

The Landlord

13. The Landlord confirmed that the proposed rent of £1200pcm was the rental valuation provided by her estate agents and was based upon comparable properties in the local area. The Landlord offered three comparable properties ranging from £1400pcm to £950pcm. The Landlord accepted that she was aware of ongoing issues at the Property and was attempting to resolve them ‘at the root’.

Determination and Valuation

14. The Tribunal considers that the comparables provided by the Landlord and the Tenant are relevant to this matter. However, it is noted that only a small number of the comparables offered by both the Landlord and the Tenant relate to semi-detached houses.

15. Relying on its own expertise and general knowledge of rental values in the area, the current rent and the comparables provided by the Landlord and the Tenant, the Tribunal considers that the market rental of the subject Property in good order would be £1,200.00 pcm. This is the rent we would expect the Property to let for in the open market if it was in the same condition as the comparable properties.

16. From this level of rent, having viewed photographs of the Property, considered the supporting documentation by the parties and the admission made by the Landlord, the Tribunal has made adjustments in relation to the following:

a) The longstanding water leak in the bathroom.

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The full valuation is shown below:

Starting rent

£1,200.00 pcm

Less

a) Items given under a) above

£50.00

Market Rent

£1,150.00 pcm

Decision

17. Therefore, the Tribunal determines the market rent at £1,150.00 per calendar month with effect from 28 February 2026.

APPEAL PROVISIONS

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If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.