First-tier Tribunal Sets Fair Market Rent After Tenant Improvements

OUTCOME: Allowed

First -tier Tribunal – [APPELLANT] Chamber File Ref No. LON/00BK/MNR/2025/0966

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 [ADDRESS] [POSTCODE]

[NAME] [NAME]

Landlord [RESPONDENT] [COMPANY]

[APPELLANT] [NAME]

1. The rent is: £ 1656.00 Per MONTH (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1ST NOVEMBER 2025

*3. The amount included for services is/is

negligible/not applicable N/A Per

*4. Service charges are variable and are not included

[NAME] of Decision 16TH JANUARY 2026

5. Date assured tenancy commenced 18TH NOVEMBER 2005

6. Length of the term or rental period MONTHLY

7. Allocation of liability for repairs [APPELLANT]

8. Furniture provided by landlord or superior landlord [APPELLANT]

9. Description of premises [APPELLANT]

FIRST-TIER TRIBUNAL [APPELLANT] CHAMBER [APPELLANT])

[APPELLANT] : LON/00BK/MNR/2025/0966

[APPELLANT] : By way of written representation

[APPELLANT] : [APPELLANT] 192, [ADDRESS], [POSTCODE]

Applicant: [redacted]

[RESPONDENT] : In person

Respondent: [redacted] : In person

[APPELLANT] of [NAME] : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [APPELLANT]. [APPELLANT]. [NAME] [APPELLANT] Management

[NAME] of Hearing : N/A

Date of Inspection : 16th January 2026

Date of Full Reasons : 26th January 2026

STATEMENT OF FULL REASONS ON AN [NAME] FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988.

REASONS

Background

1. On 28th August 2025, the landlord served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above [APPELLANT] from the passing rent of £1,384.50 per month to £1,494.71 per month.

2. On 9th September 2025 the [APPELLANT] made an [NAME] to the Tribunal for the determination of a market rent.

3. The original tenancy was believed to have begun 18th November 2005.

4. The [APPELLANT] occupies the [APPELLANT] by way of an Assured Periodic Tenancy.

5. By way of a letter dated 12th November 2025 the Tribunal issued directions. These required the landlord to provide details of evidence on which they wished to rely by way of reply by 1st December 2025. The [APPELLANT] was directed to do the same by 15th December 2025, and the landlord was given until 22nd December 2025 for his response thereto.

6. The Tribunal wrote to the parties confirming details for an inspection to take place on 16th January 2026

7. Both parties took the opportunity to make submissions.

8. In consideration of the Market rental value of the subject [APPELLANT], the Tribunal has taken into consideration all documentation before it, including various letters and the reply forms returned by parties.

9. By way of a letter / email dated 9th September 2025 and repeated on 12th November 2025, the [APPELLANT] states that the [APPELLANT] was a shell at the commencement of the tenancy, on 18th November 2005, originally occupying on 6th October 1994.

10. The confirm that they have undertaken various improvements, including the [NAME] of anti-mould paint, the replacement of lino with carpet, installing ceiling lights, replacing damaged door handles, refitting the kitchen, including a hob cooker and wall sockets, and the provision of whitegoods, the refitting of the bathroom, the retiling of the bathroom, and the installation of cupboards, built-in

wardrobes, and the provision of curtains. By way of comparison, they refer to [ADDRESS] where rents are £1,950 per calendar month, and also a previous decision of the First-Tier Tribunal.

11. The tenants Reply form confirms that the [APPELLANT] does not require a hearing but would like an inspection. They confirmed the [APPELLANT] to be on the second floor and provided accommodation and room measurements.

12. The [APPELLANT] confirms the [APPELLANT] has central heating and double glazing, and that they provided the whitegoods and carpets, and undertook various improvements as stated in previous correspondence. They say that the [APPELLANT] is near a public house and suffers from noise therefrom but is otherwise well-connected and good for transport.

13. By way of a document dated 14th December 2025 the landlord has provided screenshots from [NAME] providing comparable evidence, including a two- bedroom [APPELLANT] in Dibdin House at £2,132 per calendar month.

14. Evidence of other properties is provided but information provided is too limited to be of much assistance to the Tribunal.

15. In the landlord’s Reply form the landlord states that they do not want either an inspection, or a hearing. They provide details of the accommodation with floor areas and confirm that the [APPELLANT] does have central heating and double glazing and that the [APPELLANT] has provided whitegoods and carpets.

16. The landlord states that the [APPELLANT] has no garage, parking space, or gardens but say that there is a communal garden.

17. They say they are unaware of any defects affecting the [APPELLANT] and that it is well-placed.

18. In conclusion, the landlord says that they think that the rent of the [APPELLANT], fully modernised, would be £2,300 and after [NAME] deductions for the [APPELLANT]’s improvements, this would be £1,840. Nevertheless, they are seeking £1,663.33.

Hearing

19. No hearing.

Hardship

20. The Tribunal did not receive any submissions on hardship.

Inspection

21. The Tribunal attended the [APPELLANT] to undertake an inspection on 16th January 2026.

22. It was apparent that the [APPELLANT] was originally constructed as a purpose-built [APPELLANT] in a 1930s block.

23. The accommodation comprises a [APPELLANT] on the second floor comprising an entrance hall, lounge, two bedrooms, and bathroom/WC. There is a small balcony accessed from the Kitchen

24. During the inspection, the [APPELLANT] was present.

25. Neither the landlord nor any [RESPONDENT] on his behalf were present.

26. On arrival the Tribunal notified the [APPELLANT] that they should be provided with access to all possible areas of the [APPELLANT] but that she could not provide any additional evidence nor engage in conversation about the [APPELLANT] nor the rental value thereof.

27. All rooms were accessible.

28. CONDITION

29. The [APPELLANT] sits in an estate which the Tribunal believes may originally have been part of the developments completed by the London County Council or a similar corporate body.

30. It comprises a number of blocks built to varying heights but relatively low level and is arranged to face inward around a central garden and play area.

31. It is clear that the block is fairly well-maintained, and it was clean and tidy, as were the grounds. Security of, and access to, the block has been improved by the installation of gates and glass lobbies with an entry phone system for each.

32. Internally, the subject [APPELLANT] was found to be in very good condition, but the [APPELLANT]’s comments are noted, as is the confirmation by the landlord, which indicates that all fixtures, fittings and decorations, including the fitting of the kitchen and bathroom areas, are the [APPELLANT]’s improvements.

The Law

33. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the [APPELLANT], matters contained within the rent, repairing obligations, etc. This means that issues such as the [APPELLANT]’s ability to pay the rent or bills associated with the [APPELLANT] are not a consideration for the tribunal in assessing the rent.

Valuation

34. Following consideration of the written and photographic submissions given by both parties, taking into account the Tribunal’s inspection and using its own knowledge and experience of the rental market in Maida Vale, the Tribunal finds that the market rental value of the [APPELLANT], if it was in good condition, would be £2,300 per month.

35. Taking into account the lack of modernisation and the general disrepair excluding tenants’ improvements the Tribunal considers it necessary to adjust that market rental value to reflect specifically the following:

i) The [APPELLANT]’s full decorating liability. ii) The [APPELLANT]’s provision of carpets. iii) The fact that the [APPELLANT] has fitted the kitchen. iv) The fact that the [APPELLANT] has fitted the bathroom. v) Evidence of condensation.

36. Taking these and other more general factors into consideration, the Tribunal finds that it is necessary to make a 28% deduction in the market rental value of the [APPELLANT] to reflect its condition and lack of modernisation.

Valuation Calculation

37. Open market rent £2,300 per month

Deduction for adjustments detailed above 28% = £644 per month

Adjusted rent £1656 per month

The Tribunal therefore determines that the market rental value of the [APPELLANT] should be set at a figure of £1656.00 per month.

Hardship

38. The tribunal received no submissions on hardship.

Chairman:

[NAME]

Date: 26th January 2026

ANNEX OF RIGHTS FOR MARKET RENTS

By Rule 36(2) of the Tribunal procedure, (First-tier Tribunal) ([APPELLANT] Chamber) Rules 2013 the Tribunal is required to notify the parties about any right of appeal they might 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 this 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 [APPELLANT], and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).