First-tier Tribunal Determines Market Rent for Assured Tenancy

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. CAM/34UF/MNR/2025/0655

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 7 [ADDRESS], [POSTCODE]

[NAME] [NAME]

[ADDRESS], [POSTCODE]

Tenant [NAME]

1. The rent is: £ 1,625 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 11 December 2025

3. The amount included for services is

not applicable Per

4. Date assured tenancy commenced 11 June 2023

5. Length of the term or rental period 12 months

6. Allocation of liability for repairs LL to comply with s11 LTA 1985

8. Furniture provided by landlord or superior landlord N/A

9. Description of premises The Property comprises a detached house of brick and tile construction comprising a living room, dining room, kitchen, and WC/bathroom on the ground floor together with four bedrooms, an ensuite and a family bathroom at first floor level. There is an attached single garage and gardens to front and rear.

Chairman P [NAME] of Decision 29 August 2025

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/34UF/MNR/2025/0655 HMCTS code : P:PAPERREMOTE

Property : 7 [ADDRESS], [POSTCODE] Applicant (Tenant) : [NAME] Respondent (Landlord) : [APPELLANT] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 29 August 2025

DECISION

This has been a remote determination on the papers which the parties are taken to have consented to, as explained below. The form of determination was a paper determination described above as P:PAPERREMOTE The documents that the Tribunal was referred to are in bundles from the Applicant and the Respondent. The Tribunal has noted the contents and the decision is below.

2

Decision The Tribunal determined a market rent of £1,625 pm effective from 11 December 2025.

Reasons Background 1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 26 February 2025 to increase the passing rent from £1,550 per month to £1,625 per month with effect from 11 December 2025.

2. The Tenant made an [NAME] dated 26 March 2025 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988.

3. This rent in all cases is stated to be exclusive of Council Tax, Water Charges and fixed service charges.

4. The Tribunal issued directions on 19 May 2025, inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the tribunal to consider.

Property 5. The Tribunal did not inspect the Property but has relied upon information in the public domain including 155 photographs of the Property and correspondence as submitted by the Tenant. It is apparent from these that the Property requires repair, refurbishment and redecoration in order to be commensurate with market expectations.

6. The Property comprises a detached house of brick and tile construction comprising a living room, dining room, kitchen, and WC/bathroom on the ground floor together with four bedrooms, an ensuite and a family bathroom at first floor level. There is an attached single garage and gardens to front and rear. Tenancy 7. The Tenant occupied the Property by virtue of a Tenancy dated 11 June 2023 and commencing the same day at an initial rent of £1,485 pm and a term of 12 months thereby expiring on 10 June 2024.

8. Clause 4.5 of the Tenancy Sets out the Tenant’s obligations in respect of maintenance of the Property.

3 9. Clause 6 details the Landlord’s obligations pursuant to section 11 of the Landlord and Tenant Act 1985 in respect of repair.

10. A statutory Periodic Tenancy arose on expiry of the term of the Tenancy. The Law 11. Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one: “(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy; (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy; (c) under which the premises which are let are the same dwelling- house as was let under the fixed term tenancy; (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy” 12. Section 14 (1) of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property might reasonably be expected to let in the open market by a willing landlord under an assured tenancy: a. “having the same periods as those of the tenancy to which the notice relates; b. which begins at the beginning of the new period specified in the notice; c. the terms of which (other than relating to the amount of rent) are the same as those of the existing tenancy.” 13. Section 14 (2) of the 1988 Act requires the Tribunal to disregard: a. “Any effect on the rent attributable to the granting of a tenancy to a sitting tenant; b. Any increase in the value of the dwelling-house attributable to a relevant improvement (as defined by section 14 (3) of the Act) otherwise than as an obligation;

4 c. Any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy.” 14. Section 11 of the Landlord and Tenant Act 1985 (the 1985 Act), provides that the Tribunal is to imply a covenant by the Landlord: a. “to keep in repair the structure and exterior of the dwelling- house (including drains, gutters and external pipes), b. to keep in repair and proper working order the installations in the dwelling-house for the supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences, but not other fixtures, fittings and appliances for [NAME] use of the supply of water, gas or electricity), and c. to keep in repair and proper working order the installations in the dwelling-house for space heating and heating water.” 15. Section 14 (7) of the 1988 Act states: “Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.” Representations – The Tenant 16. The Tenant completed the Reply Form and provided a five page Personal Statement together with attachments setting out matters of disrepair which extended to six pages and 155 photographs of the Property and correspondence. Representations – The Landlord The Landlord did not make any representations nor take any part in these proceedings. Determination 17. The Tribunal understands that the contractual Tenancy came to an end on 10 June 2024 and no further Tenancy has been completed. It therefore follows that there has been a Statutory Periodic Tenancy in place since 11 June 2024.

5 18. The Tribunal also notes that the Landlord’s section 13 Notice is dated 26 February 2025 and specifies that the new rent is to come into effect from 11 December 2025 (i.e., in 4 months’ time).

19. The Tribunal is unclear as to why the stated effective date is nearly ten months after the date of the section 13 Notice but, in accordance with section 14 (1) (b) of the Housing Act 1988, the Tribunal is consequentially required to predict the rent that will be achievable in the open market on 11 December 2025.

20. In determining the market rent, the Tribunal has had regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision.

21. The current rent, and the period that has passed since that rent was agreed or determined is not relevant. Previous changes in rent are, therefore, disregarded as the Tribunal is required to assess the rent that would be offered by a prospective tenant who has no knowledge of the existing or previous rents. Similarly, historic rents achieved elsewhere are of limited relevance.

22. The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is therefore unable to have any regard to the personal circumstances or identities of the actual landlord and tenant in assessing the level of rent.

23. It is therefore irrelevant whether or not the Landlord requires the rent to be at a certain level to fund its liabilities and/or its repair obligations under the lease or whether the Tenant feels that the services provided by the Landlord are “value for money.” As such, the cost of mortgage payments and property maintenance to the Landlord does not affect the rent that would be offered by a prospective tenant in the market and must be disregarded.

24. Similarly, the ability, or otherwise, of the Tenant to pay the rent demanded cannot be taken into account. As such, whilst the Tribunal understands the Tenant’s personal circumstances it is unable to have regard to them and must assume that the Property is “vacant and to let.” 25. In this regard, whilst the valuation exercise assumes that, regardless as to the condition of the Property, a hypothetical tenant would be prepared to take occupation and negotiate a rent, it does not follow that the actual Tenant and the hypothetical tenant are one and the same. As such, the actual Tenant may be prepared to pay a certain level of rent to remain in occupation for personal reasons whereas the hypothetical tenant is bidding on the assumption that the Property is vacant and to let.

26. In the absence of any comparable evidence being provided by either of the Parties the Tribunal has been required to rely upon its own

6 experience and knowledge of the market taking into account the condition and disrepair of the Property.

27. The Tribunal therefore determines the market rental of the Property to be £1,625 per month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

28. This rent is to be effective from 11 December 2025 in accordance with the date specified in the section 13 Notice.

Name: [NAME] [NAME]: 29 August 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 [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).