First-tier Tribunal Sets Market Rent at £1,000 for Property

OUTCOME: Allowed in Part

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/42UB/MNR/2025/0746 HMCTS code : P:PAPERREMOTE

Property : 24 [ADDRESS], [POSTCODE] Applicant (Tenant) : [APPELLANT] Respondent (Landlord) : [APPELLANT] of application : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 24 January 2026

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.

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Decision The Tribunal determined a market rent of £1,000 pm effective from 3 November 2025.

Reasons Background 1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 12 September 2025 to increase the passing rent from £850 per month to £1,175 per month with effect from 3 November 2025.

2. The Tenant made an application dated 12 September 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 16 October 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 inspected the Property on 1 December 2025.

6. The Property comprises an end terraced house, benefitting from central heating and double glazing, providing a living room and kitchen at ground floor together with three bedrooms and a family bathroom at first floor level. There is a garden to the rear and communal car parking.

7. Whilst the Tribunal has reviewed the various invoices for work carried out, it considers that the Property requires full redecoration, the carpets need replacing and the kitchen units are beyond reasonable repair. In summary, it requires a complete comprehensive refit and redecoration rather than the patching up approach that appears to have been undertaken to date.

8. Babergh District Council served an Improvement Notice pursuant to sections 11 and 12 of the Housing Act 2004 on 8 October 2024. This identified four hazards comprising: • 60-year-old electrical wiring issues • Damp and mould growth

3 • Loose window frame to the first-floor window • Severe disrepair to the conservatory.

9. The remedial action was required to be completed by 7 January 2024.

10. The Tribunal notes that the Improvement Notice stated: “The Landlord appears to be willing to carry out works but during discussions has mentioned concerns about the costs involved, the perceived low rent levels and the behaviour of the tenants. The landlord also seems to favour carrying out the works himself wherever possible. Some of the workmanship is of poor quality and has not addressed the hazards. This leaves doubt about whether the works will be completed to an acceptable standard.” 11. The Council revoked this Improvement Notice on 9 September 2025 stating that: “All works required by the Improvement Notice have been completed and the hazards reduced to an acceptable level.” Tenancy 12. The Property was previously subject to a lease dated 3 September 2023 for a period of 12 months at an initial rent of £850 per month.

13. Schedule 1 of the lease set out the Tenant’s obligations. These include the following: “4.1 – To take reasonable steps to keep the interior of the Property and the Fixtures and Fittings in the same decorative order and condition throughout the Term as at the start of the Tenancy, as noted in the Inventory and Schedule of Condition. The Tenant is not responsible for the following: • Fair wear and tear; • Any damage caused by fire…; • Repairs for which the Landlord has responsibility (these are set out in Schedule 2 of this agreement); • Damage covered by the Landlord’s insurance policy...” 8.3.1 – To permit the Landlord, or any superior Landlord, or the Landlord’s Agent or contractors or those authorised by the Landlord, upon giving at least 24 hours’ notice in writing (except in any emergency) to enter the Premises at all reasonable times for the purpose of inspection and repair, to include inspection and repair to any adjoining or neighbouring Premises .”

4 14. The Landlord’s repair obligations, in addition to section 11 of the Landlord and Tenant Act 1985 are set out at Clause 5 of Schedule 2 of the Tenancy.

15. Following expiry of this lease, a Statutory Periodic Lease arose. The Law 16. 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 [NAME] 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” 17. 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.” 18. 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;

5 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.” 19. 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 making 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.” 20. 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 21. The Tenant drew various matters of concern to the attention of the Tribunal in respect of the state of repair of the Property and made the following comments: “Guttering wasn’t replaced only cleaned out. Kitchen is falling apart was only offered new kitchen after a section 21 was issued. Downstairs W/C is falling apart, living room has damp not sealed, bedrooms have damp windows not sealed. Garden filled with bricks, concrete and old rubbish from previous tenant/landlord which has hidden in and behind the shed before that collapsed and [NAME] told me to dispose of myself.” 22. The Tenant provided an additional statement that provided more detail in respect of these and other repair/decoration related matters. In addition, the Tenant advised that they had tried to negotiate and the Landlord had offered a reduction of £75 (i.e., to £1,100 pcm) but agreement was not reached.

6 Representations – The Landlord 23. The Landlord summarised his position as follows: “I need an increase in rent to cover ever rising costs. This last year I spent £1300 approximately see attached invoices (in this email and previous one sent on the 14th of October 2025) improving the property evidence is in the attachments. Because of difficulty with the tenant I have had to engage a property manager this has cost me £1754 which I have not previously paid some of this has to be paid to cover the cost of recovering arrears. The cost of meeting statutory regulations and the drive to increase energy efficiency have to be prepared for. Similar local 3 bedroom houses rent for £1200 pcm so my request is quite reasonable, analysis for this was sent in the email on the 14th October 2025 from WH Brown national estate agency. Generally, I feel that I have to consider my position as I am 85 years old bereaved and disabled person.” 24. The Landlord included details of four properties as follows: • 3-bedroom detached house with garage in [ADDRESS] - £1,285 pcm • 3-bedroom semi-detached housing with modern fitted kitchen in [ADDRESS] - £1,200 pcm • 3-bedroom end of terrace house with garage in [ADDRESS] - £1,200 pcm • 3-bedroom terraced housing redecorated throughout with new kitchen and bathroom and garage in Great Cornard - £1,200 pcm.

25. Bearing in mind that the Property does not benefit from a garage and requires refurbishment and redecorating throughout, the Tribunal considers that a discount from these rents is applicable. In addition, the quoted rents were asking rather than achieved rents. Determination 26. The Tribunal has considered all the evidence provided to it but does not consider it proportionate to set out its conclusions on every point raised. The lack of comment in respect of any particular issue should not therefore be construed as meaning that the Tribunal has not had regard to such evidence.

27. In determining the market rent, the Tribunal has regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision that would be likely to be considered by a prospective tenant.

7 28. 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.

29. 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.

30. 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.

31. Similarly, the ability, or otherwise, of the Tenant to pay the rent demanded cannot be taken into account and the Tribunal must disregard the Tenant’s personal circumstances as the Property is assumed to be “vacant and to let.” 32. 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.

33. Bearing these points in mind and having relied upon its own expertise and knowledge of such matters, The Tribunal determines the market rental of the Property to be £1,000 per month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

34. This rent is to be effective from 3 November 2025. Name: [NAME] [NAME]: 24 January 2026

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.

8 If a party wishes to appeal 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. 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. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).