First-tier Tribunal Determines Market Rent for Assured Tenancy Property

OUTCOME: Allowed in Part

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FIRST-TIER TRIBUNAL [NAME] CHAMBER ([NAME]) Case Reference : LON/00BG/MNR/2026/0099 [NAME] : 79 Saltwell St. London [POSTCODE] Applicant : [redacted] [COUNSEL] (Tenants) Representative : None Respondent : [redacted] Representative : None Date of Application : 2 February 2026 Type of Application : Determination of a Market Rent sections 13 &14 Housing Act 1988 Tribunal Members : Mr [NAME]. [NAME] Mr [NAME]. [NAME] of Decision : 21 May 2026 Rent Determined : £2150 per calendar month Date of new rent start : 1 March 2026

REASONS FOR DECISION

Background

1 A landlord’s notice dated 29 January 2026, was served under Section 13(2) Housing Act 1988 proposing a new rent of £2550 per calendar month (pcm) in place of the passing rent of £2150 pcm to take effect from 1 March 2026.

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2 On 2 February 2026 under S.13(4)(a) Housing Act 1988 the tenant referred the landlord’s notice proposing a new rent to the Tribunal for determination.

3 The assured tenancy is now calendar monthly periodic.

Allocation of Repairs between Landlord and Tenant

4 As per S.11 Landlord and tenant Act 1985.

Landlord’s Service Charges and Furniture provided and costs.

5 Two wardrobes and two tables were provided by the landlord. White goods were not included.

Liability for Council Tax

6 Tenant.

Other relevant terms of tenancy

7 None

Inspection and Hearing

8 The tenant requested an inspection. An inspection is not routinely carried out. The Tribunal has considered the request but, is content that is has sufficient information on the [NAME] and its condition and on comparables, from a combination of the written and photographic representations received and from its own knowledge and specialist expertise.

[NAME]

9 There was no inspection. The [NAME] is a purpose built mid terraced house built in the 1980’s. It has 2 bedrooms, living room/ kitchen, bathroom, WC set on 2 levels. There is a small front yard and back yard. There is no off road parking at the [NAME]. There are reserved bays in the street and on-street parking restrictions. The [NAME] is in a short terraced of houses in an established residential road a cul-de- sac, within Poplar, Tower Hamlets. (Google Streetview May 2022).

10 The [NAME] appears to be of traditional construction, brick fair faced walls and a flat roof over. There are PVCu double glazed windows and central heating. The [NAME] the floor finishes are assumed to be provided by the landlord but were said to be worn. There were no white goods included. Landlord furniture is detailed above.

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Evidence

11 The Tribunal received completed Form 1 and 1b from the tenant. Form 1a from the landlord was not received. The Tribunal is grateful for such information as was provided by one or both of the parties.

Tenant

12 The tenant referred to a short history of minor persistent disrepair at the [NAME] but, that prior to the Notice of rent increase the main remaining issue was plumbing leaks following a blocked drain inside. There was minor damage to ceiling finishes on the ground floor. The tenant provided photographs of the interior and the front exterior.

13 The tenant provided written extracts from local advertisements for rental accommodation at or around the valuation date. These showed similar properties had let or were to let at between £2200 to £2250 pcm but, were if anything in better condition. Mention was made of a similar small houses to let in: [ADDRESS] E14 (2beds 2 bathrooms) £2250 pcm; [ADDRESS] E3 (2 beds 1 bathroom) £2200 pcm; [ADDRESS] E3 (2 beds 1 bathroom) £2200 pcm.

14 The tenant suggested a new rent of £2150 to £2200 pcm for the [NAME] at the valuation date.

Landlord

15 The Tribunal did not receive any representations from the landlord.

Law

16 In accordance with the terms of S.14 of the Act we are required to determine the rent at which we consider the [NAME] might reasonably be expected to let in the open market, by a willing landlord, under an assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any decrease in value due to the tenant’s failure to comply with any terms of the tenancy. Thus the [NAME] falls to be valued as it stands; but assuming that the [NAME] to be in a reasonable internal decorative condition.

Notice Validity

17 The tenant questioned the validity of the Notice. For applications made on notices served prior to 1 May 2026, this remains a matter finally to be determined at the County Court, on separate application from either of the parties. However in the process invoked by the landlord here although there was to be a rent increase, the Tribunal concluded that this was not cause to find the notice invalid.

4 Valuation

18 The Tribunal finds the tenant’s comparable properties to let around in early 2026, helpful. From these and from the Tribunal’s own general knowledge of market rent levels in Tower Hamlets it determines that the subject [NAME] would let on normal Assured Shorthold Tenancy (AST) terms, for £2200 per calendar month, fully fitted and in good order. This is the rent we would expect the [NAME] to let for in the open market if it was in the same condition as comparable properties including landlord’s white goods carpets and curtains.

19 From the representations the Tribunal found the following relevant factors which would affect this starting rental valuation: Although there were small items of disrepair at the valuation date those present beforehand had mainly been dealt with by the landlord. There was though the absence of floor coverings in good condition or any white goods. The Tribunal makes a small deduction of £50 pcm to reflect this, leaving a new market rent at £2150 pcm.

Undue Hardship

20 The new rent takes effect from the date in the landlords notice. In cases of undue hardship the Tribunal has discretion to fix a later starting date. Although reference was made by the tenant to hardship as a result of the rent increase, there was no evidence to support a claim of undue hardship. The effective date remains that in the notice.

Decision and effective start date

21 The Tribunal, on the basis of representations made considers that undue hardship would not be caused and sets the starting date of the new rent of £2,150 as 1 March 2026.

22 Although the landlord is not obliged to charge this rent and may charge a significantly lower rent as a result of their own choice, policy, or governmental regulation; they may not charge more than this figure.

[NAME] 21 May 2026

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) ([NAME] Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have.

5 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 decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) ([NAME] Chamber) Rule 2013).

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 [NAME], 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).