First-tier Tribunal Determines Market Rent Based on Actual Rents

OUTCOME: Allowed in Part

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

HAV/29UD/MNR/2025/0843

[ADDRESS], [POSTCODE]

Tenant/Applicant I & A [COUNSEL]

Tenant’s Representative None

Landlord [COMPANY]

Landlord’s Address

Landlord’s [NAME] of Application 16th December 2025

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

Tribunal Members [NAME] – [NAME] of Decision 11th March 2026

Rent Determined £2,400 per calendar month

Date the new rent takes effect 11th January 2026

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REASONS FOR THE DECISION

Background

1. On 3rd December 2025, the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,450 per calendar month (“pcm”) in place of the existing rent of £2,285 pcm to take effect from 11th January 2026.

2. On 16th December 2025, 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 shorthold tenancy commenced on 11th December 2024 for a term of 12 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. No additional charges.

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. Neither party requested 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.

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The Property

9. The Property is a ‘Shamrock’ style house within a nearly new development of 98 residential properties all of which are owned and operated by the Landlord, offering the following accommodation:

Hall, cloakroom with WC, living room, kitchen/diner, utility room, 2 double bedrooms (one with ensuite shower room), single bedroom and bathroom with WC.

Outside: Parking space for 2 cars, gardens.

The Property benefits from heating from an electric air source heat pump, double glazing, free Broadband and a dedicated property manager for the whole development. The Energy Performance Rating is ‘B’.

The Property is situated approximately 1.5 miles east of the centre of Dartford, close to parkland, local amenities and excellent transport links.

Evidence

The Tenant.

10. The Tenant made the following comments:

a) In their Rent Appeal Statement state that the photographs submitted by the Landlord’s Agent are not of their property although the virtual tour supplied is of a similar house type.

b) The Tenants comment on the Rightmove and [NAME] comparables provided by the Agent and state that their property does not include all of the same benefits.

c) The Tenants provide their own comparables taken from the internet with asking rents ranging from £1,900 to £2,300 per month.

d) The Tenants refer to previous repair issues with their property and to the number of houses on the same estate that are becoming vacant.

The Landlord

11. The following comments were made by the Landlord’s Agent:

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a) The Agent states that at the time of writing there are 14 comparable homes on the site of which 11 are occupied.

b) The Agent had completed three new lettings on this house type between 1st September 2025 and 6th February 2026 at £2,400 pcm and completed one new rental agreement between 1st August 2025 and 6th February 2026 at £2,425 pcm.

c) The Agent also provided details of similar properties to rent available on [NAME] or Rightmove with asking rents between £2,475 and £3,500 per month.

d) In his statement of 6th February 2026, the Agent suggests that the proposed rent of £2,425 with effect from 11th January 2026 is consistent with the anticipated open market rental of the property, taking into account projected rental growth into 2026.

Determination and Valuation

12. The Tribunal considers that there is a particular micro market for rental properties on this development. The homes are nearly new and energy efficient.

13. The only evidence provided is of actual rents achieved for recent lettings arranged by the Agent all at a rent of £2,400 per month. The Tribunal will not assess a rent based on projected future increases in the market.

14. Relying on its own expert, general knowledge of rental values in the area, and the comparable evidence provided by the Parties, the Tribunal considers that the market rental of the subject property is £2,400 per month.

Market rent

£2,400 pcm

Undue hardship

12. The new rent takes effect from the date specified in the Landlord’s Notice of Increase unless that would cause undue hardship to the tenant. In cases of undue hardship, the Tribunal has a discretion to fix a later starting date up to the date a Tribunal makes its determination.

13. No evidence of undue hardship was provided.

Decision

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14. Therefore, the Tribunal determines the market rent at £2,400 per calendar month with effect from 11th January 2026.

APPEAL PROVISIONS

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.