First-tier Tribunal Adjusts Rent Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AP/MNR/2025/0922

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 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord [NAME]. C/O [RESPONDENT] 8 [ADDRESS] [POSTCODE]

Tenant Ms [APPELLANT]

1. The rent is: £ 1,700 Per Calendar month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 6 August 2025

3. The amount included for services is not applicable N/A Per N/A

4. Date assured tenancy commenced 6 June 2023

5. Length of the term or rental period Monthly periodic

6. Allocation of liability for repairs S.11 Landlord & Tenant Act, 1985

7. Furniture provided by landlord or superior landlord White goods.

8. Description of premises A first floor self contained one bedroom flat comprising one bedroom, reception room, kitchen, bathroom and separate WC.

[NAME] of Decision

3 February 2026

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Case Reference

: LON/00AP/MNR/2025/0922

Property : [ADDRESS], [POSTCODE]

Tenant

: Ms [APPELLANT]

Landlord : [NAME] [APPELLANT]. [RESPONDENT] of Objection : 5 August 2025

Type of [NAME] : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal

: Mr [NAME]

Mr [NAME] of Reasons : 3 February 2026

_______________________________________________

DECISION

The Tribunal determines a rent of £1,700 per calendar month with effect from 6 August 2025. ____________________________________

© CROWN COPYRIGHT 2026 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 REASONS

Background

1. On 9 June 2025 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,950 per month in place of the existing rent of £1,650 per month to take effect from 6 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 5 August 2025.

3. Directions were issued on 25 September 2025 by the Tribunal.

4. The parties were invited to submit any relevant information and submissions. The Tenant submitted a completed reply form to support their case. [APPELLANT] submitted a Landlord’s response to Tenant’s submissions document to set out the Landlord’s case.

5. In their reply form, the Tenant stated that they were content with a paper determination and did not require either an inspection or hearing to be held in this matter. The Landlord did not request a hearing or inspection. Accordingly, neither an inspection or hearing were initially scheduled and the matter was to be dealt with by the Tribunal on the basis of the papers.

Submissions

6. The Tenant submitted a completed reply form setting out a description of the rooms within the property, condition and features of the property including central heating, partial double glazing, carpets and curtains and white goods.

7. The Tenant states the property to be a one bedroom flat. The Tenant also states that the property is ‘largely in original condition’ and that there is disrepair to the property including low water pressure, unreliable hot water supply, issues with plumbing, several drafty single glazed windows and mould growth. The Tenant also states that there are some double glazed windows in the property but that these are old and suffer from blown double glazing units.

8. The Tenant submitted Right Move links to properties that have been listed on Right Move and that they believe are similar to the subject property. These include three one-bedroom properties with asking rents ranging from £1,300 to £1,650 per month. Also a two bedroom property listed at £1,750 per month.

3 9. The Tenant stated that if the rent was increased from 6 August this would cause financial hardship but no evidence was provided to substantiate this.

10. [APPELLANT] submitted a Landlord’s response to Tenant’s submissions document. In which it states that the property is a two bedroom flat. It also stated that the Landlord disputes the condition of the property and disrepair items which the Landlord states have either been investigated or are not issues.

11. In the submissions provided by [RESPONDENT] on behalf of the Landlord it is stated that the subject property is a two-bedroom flat not a one bedroom and invited the Tribunal to inspect to confirm.

12. [NAME] submit that approximately £10,000 was spent on the property prior to the start of the Tenant’s tenancy and that there have been repeated contractor visits to reports of disrepair during the tenancy.

13. In relation to the reports of disrepair by the Tenant, it is submitted by [APPELLANT] that [NAME] have confirmed that the water pressure issue is caused by simultaneous water use between the flats and that it is not possible to increase the mains pressure and that a booster pump may resolve but the Tenant will not agree to this as it would render the system unsuitable for use on Shabbat.

14. It is submitted that minor damp is to be expected, that the Tenants are also responsible for ventilating the property and have in the past turned off the extractor fan in the bathroom. In relation to the windows it is stated that a small number of windows show minor rot and that a contractor had been instructed to attend at the time of the statement which was submitted on 30 October 2025.

15. In relation to comparable rents [APPELLANT] submit that the comparable rents submitted by the Tenant are not accurate or relevant and the examples are situated outside the local Jewish area (the Eruv) where market conditions are different and prices are significantly lower. [COMPANY] submit that two bedroom flats in similar condition rent for between £2,200 to £2,600 per calendar month and that they believe the subject property would let for £2,250 if relet immediately. No evidence of similar comparable properties was submitted by [COMPANY] to substantiate their view on market value.

16. The Tribunal is grateful to the parties for their submissions in relation to condition and rental value which have all been considered as part of their decision.

17. As there is a clear dispute over the number of bedrooms and condition of the property, the Tribunal decided that an inspection was necessary. An inspection was scheduled for 30 January 2026.

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Inspection

18. The Tribunal inspected the property on 30 January 2026, accompanied by the Tenant (Ms [APPELLANT]). The landlord did not attend the inspection, but the Tribunal is satisfied that the Landlord had received prior notification of the inspection.

19. The subject property comprises accommodation located on the first floor accessed via a ground floor entrance door which leads to an internal staircase leading to the first floor. Externally the building is in average condition with a pebbledash finish to the front elevation and pitched slate roof covering.

20. On the ground floor, there is an entrance lobby with a staircase leading to the 1st floor. On the 1st floor, the property comprises a large room to the front of the property currently used as the master bedroom, a smaller second room, a kitchen and a bathroom and separate WC to the rear of the kitchen.

21. The property has UPVC double-glazed windows throughout although these are understood to have been fitted recently to replace defective single glazed and older double glazed windows as reported by the Tenant. The property also benefits from central heating. The kitchen hot and cold taps were run by the Tribunal during the inspection. Whilst the water pressure was acceptable at the time, it is acknowledged that use by the ground floor flat would likely affect the pressure.

22. The cosmetic condition of the property presents as dated due to tired décor and old worn carpets. The kitchen and bathroom fittings are basic but relatively modern. Evidence of mould to the decorative surfaces of the bathroom and WC were visible.

23. The Tribunal consider the property to be a one-bedroom flat due to only two rooms aside from the kitchen and bathroom, one of which should be considered a reception room.

The Law

24. 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.

25. The tribunal has proceeded on the basis that the Landlord is responsible for repairs in accordance with Section 11 of the Landlord

5 and Tenant Act, 1985.

Determination and Valuation

26. 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.

27. 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 £2,000 per calendar month. From this level of rent we have made adjustments in relation to the:

Tired décor and floor coverings Defective windows (as at 6 August 2025) Overall condition

The adjustment is as follows:

per month

Market rent

£2,000

Less

Condition ) approx.. 15%

£300 £1,700

28. The Tribunal determines a rent of £1,700 per calendar month.

29. The Tribunal directs the new rent of £1,700 to take effect on 6 August 2025. This being the date as set out in the Landlord’s Notice of Increase.

Chairman: [NAME]: 3 February 2026

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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 [NAME] for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the 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. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).