First-tier Tribunal Adjusts Market Rent for Property
📌 In brief
The First-tier Tribunal decided on a market rent of £2,700 per month for a property, taking into account the property's condition and improvements made by the tenant.
⚖️ Legal holding
A tenant is entitled to a fair market rent adjustment considering the property's condition and any improvements made by the tenant.
📖 What the law says
This section allows a tenant under an assured tenancy to apply to a tribunal to challenge the rent payable under the tenancy. The tribunal will then determine a fair market rent based on various factors including the terms of the existing tenancy and any improvements made by the tenant.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal adjusted the proposed market rent based on the condition and improvements of the property.
📜 Headnote Official document
The First-tier Tribunal determined a market rent of £2,700 per month for a property, adjusting the proposed rent based on the property's condition and tenant improvements.
📚 Full judgment Official document
OUTCOME: Allowed
1
Case Reference
: JD/LON/00AE/MNR/2025/0904
Property : 145 Carlton Vale, London [POSTCODE]
Tenant
: [NAME]
Landlord : The Salvation Army – North London Division
Date of Objection : 21 July 2025
Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988
Tribunal
: Mr. [NAME] of Reasons : 27 November 2025
_______________________________________________
DECISION
The Tribunal determines a rent of £2,700 per calendar month with effect from 1 August 2025. ____________________________________
© CROWN COPYRIGHT 2025 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
2
REASONS
Background
1. On 5 June 2025 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,760 per month in place of the existing rent of £2,400 per month to take effect from 1 August 2025.
2. 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. The Tenant’s referral was received by the Tribunal on 21 July 2025.
3. Directions were issued on 26 September 2025 by the Tribunal.
4. The parties were invited to submit any relevant information and submissions. The Tenant and Landlord each submitted a completed reply form to support their cases.
5. In their reply forms, the Tenant and Landlord both stated that they were content with a paper determination and did not require either an inspection or hearing to be held in this matter. Accordingly, neither an inspection or hearing were held and the matter was dealt with by the Tribunal on the basis of the papers.
6. The property is a terraced house with a garden comprising three bedrooms, living room, kitchen, WC and bathroom.
Submissions
7. The Tenant submitted a completed reply form setting out a description of the rooms within the property, condition and features of the property.
8. The Tenant stated in the application form that they have carried out improvements including painting the walls and replacing floor coverings to wooden tiles downstairs and new carpets upstairs.
9. The Landlord submitted a completed reply form setting out a description of the rooms within the property.
10. Both the Landlord and Tenant reply forms confirmed that the property is in good condition and benefits from central heating, double glazing and white goods provided by the Landlord..
3 The Law
11. The rules governing a determination of market rent are set out in section 14 of the Housing Act 1988. In particular, the tribunal is to determine the rent at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy.
12. The tribunal has proceeded on the basis that the Landlord is responsible for repairs in accordance with Section 11 of the Landlord and Tenant Act, 1985.
Determination and Valuation
13. In the first instance the Tribunal determined what rent the landlord could reasonably be expected to obtain for the subject property in the open market if it were let on the determination date in the condition that is considered usual for such an open market letting. The Tribunal considered the value of the property in light of its local knowledge and experience with regard to the submissions of the Landlord and Tenant.
14. Having consideration of the evidence proved by the parties and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the subject property in good tenantable condition would be in the region of £3,000 per calendar month. From this level of rent we have made adjustments in relation to the:
Tenant repair and redecoration obligations Tenant improvements – floor covering replacements
The adjustment is as follows:
per month
Market rent
£3,000
Less
Lease terms; and
) Tenant improvements
) approx.. 10%
£300
£2,700
15. The Tribunal determines a rent of £2,700 per calendar month.
16. The Tribunal directs the new rent of £2,700 to take effect on 1 August 2025. This being the date as set out in the Landlord’s Notice of Increase.
4
Chairman: [NAME]: 27 November 2025
Rights of appeal
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 may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28 day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit. The application 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 making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).
MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AE/MNR/2025/0904
Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination or Section 22 Determination)
Housing Act 1988 Section 14
Address of Premises The Tribunal members were 145 Carlton Vale, London [POSTCODE]
[NAME]
Landlord The Salvation Army – North London Division C/o [ADDRESS] [POSTCODE]
Tenant [NAME]
1. The rent is: £ 2,700 Per month (excluding water rates and council tax but including any amounts in paras 3)
2. The date the decision takes effect is: 1 August 2025
3. The amount included for services is not applicable N/A Per N/A
4. Date assured tenancy commenced 16 November 2021
5. Length of the term or rental period Monthly periodic
6. Allocation of liability for repairs Section 11, Landlord & Tenant Act
7. Furniture provided by landlord or superior landlord White goods
8. Description of premises Terraced house comprising living room, kitchen, bathroom, WC and three bedrooms.
[NAME] of Decision 27 November 2025
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Rent Adjustment Case: Property Condition and Financial Hardship Considered
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Rent Based on Property Condition
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Fair Rent to £660 Due to Property Condition
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Fair Rent for Crondall Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Lease Premium at £34833
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Market Rent Based on Property Condition
- First-tier Tribunal (Property Chamber) Rent Adjustment for Assured Tenancy: First-tier Tribunal Decision
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent at £760 PCM
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenant made improvements to the property.
- Rent adjustments reflect the property's condition.
- Rent adjustments consider market conditions.
- Tenant followed proper procedures for rent adjustment.
- Rent adjustments are based on market comparables.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The First-tier Tribunal set a market rent of £2,700 per month for a property, adjusting the proposed rent based on the property's condition and tenant improvements.
Who was involved?
The decision involved a tenant and a landlord, with the tenant referring the landlord's proposed rent increase to the tribunal.
How did the court decide, and why?
The court decided to adjust the proposed rent to £2,700 per month, considering the property's condition and the tenant's improvements.
Which laws or rules were applied?
The Housing Act 1988 sections 13 and 14 were applied to determine the market rent.
What was the argument that mattered most?
The argument that mattered most was the impact of the tenant's improvements on the property's value.
Was the decision for or against the person who brought the case?
The decision was for the tenant, as the rent was adjusted downward from the landlord's proposal.
What does this mean for someone in a similar situation?
Someone in a similar situation should consider the impact of their property improvements when disputing a rent increase.
What evidence or documents mattered?
Replies from both the tenant and landlord detailing the property's condition and improvements were crucial.
Can a decision like this be appealed?
Yes, a decision like this can be appealed to the Upper Tribunal within 28 days.
Is it worth getting a solicitor for a case like this?
It is recommended to seek advice from a qualified solicitor for such cases.
