First-tier Tribunal Determines Market Rent for Hackney Property

OUTCOME: Allowed

(c)

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/00AM/MNR/2025/0799 Property : 105 [ADDRESS] [POSTCODE] Tenants :

[COUNSEL] [NAME] : In person

Landlord : [COUNSEL] : Did not attend and was not represented Type of Application : Section 13 Housing Act 1988 Tribunal Members : Mr [NAME] Mr [NAME] and venue of Hearing : 10 [ADDRESS] [POSTCODE] 12 September 2025 Date of Decision : 20 October 2025

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DECISION

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2 Decision

(1) The market rent of the property is £3,200 per month with effect from 16 April 2025.

Reasons

Background

1. The property is a Victorian mid terraced house in Homerton.

2. On 14 March 2025 the Landlord served a notice under the Housing Act 1988 (“the Act”) which proposed a new rent of £4,680 per month in place of the existing rent of £2,392 per month to take effect from 16 April 2025.

3. On 6 April 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.

Directions

4. On 3 July 2025, the Tribunal issued directions to the parties. The application was set down for a determination on the papers without a hearing or inspection, unless either party requested these, which the tenant did. The landlord was directed to complete a reply form giving details of the property, further comments, and any documents upon which the Tribunal was to rely, by 24 July 2025. The tenant was directed to do likewise by 7 August 2025. The landlord was entitled to submit a reply by 14 August 2025.

Hearing and Inspection

5. A hearing took place on 12 September 2025 at [ADDRESS] at which the tenants attended in person and the landlord did not appear. The Tribunal inspected the property shortly after the hearing in the presence of the tenants. The landlord did not attend.

The Tenancy

6. The tenancy is an assured periodic tenancy. From the tenancy agreement, a copy of which was provided with the application, the assured tenancy commenced on 16 October 2022 as an assured shorthold tenancy at a rent of £2,392 per calendar month. Initially there were four joint tenants. The Tribunal was told at the hearing that two of those joint tenants had given notice to quit and left before the effective date of the Notice (see below).

3

The Tenant’s Case

Jurisdiction

7. The tenant provided a reply form. The tenants challenged the validity of the section 13 notice on the basis that (i) it was not sent to all four tenants and (ii) it was not sent by post but by WhatsApp messaging. In answer to the tribunal Ms [NAME] explained that originally the house was let to four joint tenants. Two however had given up their tenancies before the section 13 notice took effect.

8. For the purpose of its jurisdiction under section 13 , the Tribunal took the view that the section 13 notice was valid in relation to the present tenants and that they had suffered no prejudice in relation to the mode of service adopted. It therefore found that it had jurisdiction to determine the rent. However, the Tribunal is not empowered to make a definitive ruling on the validity of the notice, which is a matter for the courts.

Submissions on Rent

9. These may be summarised as follows. Living room 1 (main reception) has visible damp and humidity. Living room 2 is rented as a bedroom. Windowsill is coming off the wall. Floorboards loose. In the kitchen Acro props support the ceiling under the bay window. Flooring is uneven. Bedroom 1 is a double bedroom with visible damp and humidity damage. There are cracks on the walls. Floorboards loose. Bedroom 2 is a double bedroom with loose floorboards. Bedroom 3 is a double bedroom with visible cracks on the walls. The bathroom has damp and black mould. There is a separate WC. The external WC is non-useable. The tenants agreed that the property included central heating double glazing carpets /curtains and white goods.

10. The new bathroom flooring and WC were only installed following a floorboard collapse in November 2024. The Acro props are not an improvement. Works carried out before the current tenancy by the landlord should be disregarded as they were reflected in the current rent. The building defects justify a rent below market value. In addition to the alleged defects set out above the tenants also referred to missing tiles on the entrance steps.

11. The proposed rent was disproportionate as comparable properties have two bathrooms, full refurbishment and no significant defects. The tenants exhibited photographs. No specific comparables were referred to.

4 The Landlord’s Case

12. The landlord challenged the validity of the reference to the Tribunal on the grounds that the application had not been signed by all four tenants then residing. The Tribunal’s remarks about jurisdiction apply equally to that submission, namely that definitive validity is a matter for the courts, but the tribunal would determine the rent.

13. The landlord supplied a reply form which noted the size of each room. The landlord stated that the property included central heating double glazing carpets curtains and white goods.

14. He submitted that various repairs had been carried out. The property was inspected on 23 April 2025 by an environmental health officer from LB Hackney. They had described the property as being in generally good condition internally and externally. The dining room ceiling was scheduled for replacement when the house was vacant next. The new rent should begin on 16 April 2025. Mr [NAME] supplied floor plans, an “average area rent report” from [NAME] and the property condition report. The property is licenced for five persons. The average rent of a 4- bedroom house in hackney is £5,037. No specific comparables were referred to.

The Law

15. The law as to the Tribunal’s approach is given at section 14 of the Act which insofar as relevant is as follows:

(1)Where, under subsection (4)(a) of section 13 above, a tenant refers to a Tribunal a notice under subsection (2) of that section, the Tribunal shall determine the rent at which, subject to subsections (2) and (4) below, the Tribunal 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; (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; [...].

Determination

16. The Tribunal found that overall the house was in good condition, apart from the two Acro props in the kitchen adjacent to the bay window which would reduce marketability significantly. It noted some limited wall staining from past water ingress. The bathroom and WC are both tired with non-matching suites. The front steps are missing some tiles. The

5 kitchen is generally in good condition, but the floor is sloping in part. The tribunal does not consider that the outside WC would impact rent. The Tribunal did not detect a particular problem with floorboards. It also notes that the EHO report was favourable overall.

17. The Tribunal considers that this is a three bedroomed house having been designed with two ground floor reception rooms. It does not therefore consider that four-bedroom houses are the correct comparator. The tribunal notes that the average rent in Hackney for a 3-bedroom house according to the [NAME] report is ££3,980 per month. The Tribunal has also considered its general knowledge of rents in Homerton and finds that had the property been in very good condition it would have attracted a rent of £4,000 per month. However, The Tribunal considers it necessary to make allowances for the defects set out above. It considers that these require a 20% reduction in rent. The Tribunal therefore finds that the market rent is £3,200 per month.

18. The applicants have not submitted that a deferment of the rent commencement date should be given owing to undue hardship under section 14(7) of the Act. Therefore the Tribunal determines that the increased rent shall commence with effect from 16 April 2025 being the date specified in the landlord’s notice.

Chairman: [NAME]: 20 October 2025

APPEAL PROVISIONS

ANNEX - RIGHTS OF APPEAL

• The Tribunal is required to set out rights of appeal against its decisions by virtue of the rule 36 (2)(c) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 and these are set out below.

• If a party wishes to appeal against this decision to the Upper Tribunal (Lands Chamber) then a written application for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

• The application for permission to appeal must arrive at the Regional office within 28 days after the Tribunal sends written reasons for the decision to the person making the application.

• 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.

6 • The application 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 making the application is seeking.

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AM/MNR/2025/0799

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 105 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT]

Landlord [RESPONDENT] 37 [ADDRESS] [POSTCODE]

Tenant [NAME] [NAME]

1. The rent is: £ 3,200 Per month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 16 April 2025

*3. The amount included for services is

not applicable

Per

*4. Service charges are variable and are not included

5. Date assured tenancy commenced 16 October 2022

6. Length of the term or rental period Monthly

7. Allocation of liability for repairs Landlord

8. Furniture provided by landlord or superior landlord None

9. Description of premises A Victorian mid terraced house with 5 rooms, kitchen/diner, bathroom, separate WC and outside WC. Rear garden.

MR22 [NAME] of Decision 20 October 2025