First-tier Tribunal Determines Market Rent for Assured Tenancy
📌 In brief
The First-tier Tribunal decided on the market rent for a property under an assured tenancy, ensuring the rent reflects what a willing landlord would charge on the open market, as per the a person.
⚖️ Legal holding
A tenant is entitled to a rent determination that reflects the open market value of the property under an assured tenancy, ignoring certain factors such as tenant improvements and disrepair issues.
📖 What the law says
Under the Housing Act 1988, section 14 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 the open market rent, considering the rent at which a willing landlord would expect to let the property in the open market. However, certain factors are disregarded in this determination, including the effects of granting a tenancy to a sitting tenant, increases in property value due to improvements made by the tenant, and decreases in property value due to the tenant's failure to comply with the tenancy terms.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal determined the market rent for a property under an assured tenancy.
📜 Headnote Official document
The Tribunal determined the market rent for a property under an assured tenancy, considering the open market value while disregarding certain factors such as tenant improvements and disrepair issues, as per the Housing Act 1988.
📚 Full judgment Official document
OUTCOME: Allowed
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Case Reference : LON/00BE/MNR/2023/0457
P:PAPERREMOTE
Property : 10 [ADDRESS] [POSTCODE]
Applicant: [redacted]
Respondent: [redacted] Determination of the market rent under Section 14 [NAME]
Tribunal
: Mrs [NAME] and venue of : 25 June 2024 Hearing Remote on the papers
_______________________________________________
DECISION ____________________________________
This has been a hearing on the papers which has been consented to by the parties. A face to face hearing was not held because no-one requested the same. The documents that I was referred to were in an electronic bundle the contents of which we have recorded
The market rent is £1,358.80 per month with effect from 1 November 2023.
© CROWN COPYRIGHT FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
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Background
1. On 31 October 3023 the tenant referred to the Tribunal a notice of increase of rent served by the landlord under section 13 of the [NAME].
2. The landlord's notice, which was served on 21 September 2023, proposed a rent of £1,358.80 per month with effect from 1 November 2023 in place of the existing rent of £1235.27 per month. 3. The tenant occupies under the terms of a monthly tenancy from 1 October 2005. The tenat has been in occupation since 7 May 1998.
4. Directions were issued by the tribunal on 30 April 2024. 5. No written representations regarding the open market rental value were made by or on behalf of either the landlord or the tenant. The Evidence 6. The flat is on the fourth floor of a purpose built block constructed c1950. The accommodation comprises four rooms, kitchen and bathroom/wc, it is centrally heated. The law
7. In accordance with the terms of section 14 [NAME] I proceeded to determine the rent at which I considered that the subject property might reasonably be expected to be let on the open market by a willing landlord under an assured tenancy.
8. In so doing I, as required by section 14(1), ignored the effect on the rental value of the property of any relevant tenant's improvements as defined in section 14(2) of that Act or any diminution in value due to the tenant not complying with the terms of the tenancy and also any items of disrepair which either the tenant had not reported to the landlord or had not allowed access for the landlord to carry out the necessary repairs.
Valuation
9. In coming to my decision, I determined that the landlord’s proposed rent was not in excess of the market rent. There are very few comparable flats available on the market since most flats available are at the higher end of the market.
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The decision 10. The rent of £1,358.80 per month is effective from 1 November 2023 in accordance with the landlord’s notice since the tenant has not made any representations that backdating would cause him undue hardship.
Chairman: [NAME]: 25 June 2024
ANNEX - RIGHTS OF APPEAL
I. 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] should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp- pta-[NAME]-for-permission-to-appeal-a-decision-to-the-upper- tribunal-lands-chamber II. 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].
III. 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.
IV. 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. Please note that if you are seeking permission to appeal against a decision made by the Tribunal under the Rent Act 1977, the [NAME] or the Local Government and Housing Act 1989, this can only be on a point of law.
[NAME]
14 Determination of rent by rent assessment committee. (1)Where, under subsection (4) (a) of section 13, a tenant refers to a rent assessment committee a notice under subsection (2) of that section, the committee shall determine the rent at which, subject to subsections (2) and (4) below, the committee consider that the dwelling-house concerned might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy— (a) which is a periodic tenancy having the same periods as those of the tenancy to which the notice relates;
4 (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 the rent) are the same as those of the tenancy to which the notice relates; and (d) in respect of which the same notices, if any, have been given under any of Grounds 1 to 5 of Schedule 2 to this Act, as have been given (or have effect as if given) in relation to the tenancy to which the notice relates. (2) In [NAME] a determination under this section, there shall be disregarded— (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 carried out by a person who at the time it was carried out was the tenant, if the improvement— (i) was carried out otherwise than in pursuance of an obligation to his immediate landlord, or (ii) was carried out pursuant to an obligation to his immediate landlord being an obligation which did not relate to the specific improvement concerned but arose by reference to consent given to the carrying out of that improvement; and (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. (3) For the purposes of subsection (2)(b) above, in relation to a notice which is referred by a tenant as mentioned in subsection (1) above, an improvement is a relevant improvement if either it was carried out during the tenancy to which the notice relates or the following conditions are satisfied, namely— (a) that it was carried out not more than twenty-one years before the date of service of the notice; and (b) that, at all times during the period beginning when the improvement was carried out and ending on the date of service of the notice, the dwelling-house has been let under an assured tenancy; and (c) that, on the coming to an end of an assured tenancy at any time during that period, the tenant (or, in the case of joint tenants, at least one of them) did not quit. (4)In this section “rent” does not include any service charge, within the meaning of section 18 of the Landlord and Tenant Act 1985, but, subject to that, includes any sums payable by the tenant to the landlord on account of the use of furniture or for any of the matters referred to in subsection (1) (a) of that section, whether or not those sums are separate from the sums payable
5 for the occupation of the dwelling-house concerned or are payable under separate agreements…. (7)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 … 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.
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MR22 First-tier Tribunal – Property Chamber File Ref No. HS/LON/00BE/MNR/2023/0457
Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)
[NAME] 14
Address of Premises The Tribunal members were 10 [ADDRESS] , [POSTCODE]
[NAME]
Landlord [RESPONDENT], St. [ADDRESS], Newcastle upon Tyne, Tyne and Wear, [POSTCODE]
Tenant
1. The rent is: £ 1358.80 Per month (excluding water rates and council tax but including any amounts in paras 3)
2. The date the decision takes effect is: 1 November 2023
*3. The amount included for services is not applicable
Per
*4. Service charges are variable and are not included
5. Date assured tenancy commenced 1 October 2005
6. Length of the term or rental period monthly
7. Allocation of liability for repairs As per agreement. S11 applies
8. Furniture provided by landlord or superior landlord
9. Description of premises Fourth floor flat in purpose built block c 1950 comprising four rooms, kitchen and bathroom/wc, central heating
Chairman E [NAME] of Decision 25 June 2024
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Market Rent Determination for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Periodic Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Tenant
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Market Rent for Property
- First-tier Tribunal (Property Chamber) Tribunal Sets Rent for Assured Tenancy Based on Market Comparables
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Rent for Assured Tenancy at £890.00 Monthly
- First-tier Tribunal (Property Chamber) Tribunal Sets Fair Rent After Property Inspection
- First-tier Tribunal (Property Chamber) Tribunal Sets New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) Rent Determination for Assured Tenancy - First-tier Tribunal Decision
- First-tier Tribunal (Property Chamber) Tribunal Sets Fair Rent for Protected Periodic Tenancy
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
- Rent should reflect the open market value of the property.
- Rent determination should ignore tenant improvements.
- Disrepair issues should not affect the rent determination.
- Rent should be based on local rental values.
- Rent should be adjusted for the property's condition and tenancy terms.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
It set the market rent for a property under an assured tenancy.
Who was involved?
A tenant and a landlord were involved.
How did the court decide, and why?
The court decided based on the open market value, ignoring factors like tenant improvements and disrepair issues.
Which laws or rules were applied?
The Housing Act 1988 was applied.
What was the argument that mattered most?
The argument that mattered most was the open market value of the property.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation can expect their rent to be determined based on the open market value.
What evidence or documents mattered?
Documents related to the property and its market value were important.
Can a decision like this be appealed?
Yes, decisions like this can be appealed to the Upper Tribunal (Lands Chamber).
Is it worth getting a solicitor for a case like this?
It is always recommended to seek advice from a qualified solicitor for cases like this.
