First-tier Tribunal Sets Market Rent at £1,100 per Month

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00UJ/MNR/2025/0694 HMCTS code : P:PAPERREMOTE

Property : 11 Sherwood Fields, Kesgrave, Ipswich, [POSTCODE] Applicant (Tenant) : C A L Flores and C Ibourk Respondent (Landlord) : J [RESPONDENT] of [NAME] : Determination of a Market Rent: Sections 13 and 14 Housing Act 1988 Tribunal members : Mr [NAME] [NAME] of Determination : 29 August 2025

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.

2

Decision The Tribunal determined a market rent of £1,100 pm effective from 17 June 2025.

Reasons Background 1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 16 April 2025 to increase the passing rent from £900 per month to £1,100 per month with effect from 17 June 2025.

2. The Tenant made an [NAME] dated 5 June 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 26 June 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 did not inspect [NAME] but has relied upon the Parties’ submissions and evidence in the public domain. 6. [NAME] comprises a mid-terraced house of modern brick and tile construction providing lounge and kitchen/diner at ground floor and two bedrooms with family bathroom and first floor level.

7. It benefits from wood double glazed windows, central heating, fitted kitchen with cooker, enclosed rear garden, open front garden and one allocated parking space. Tenancy 8. [NAME] was previously subject to a lease dated 5 June 2024 for a period of 12 months from 17 June 2024 at an initial rent of £900 per month.

9. Following expiry of this lease, a Statutory Periodic Lease arose. The Law 10. Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one:

3 “(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 [NAME] 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” 11. Section 14 (1) of the 1988 Act provides that the Tribunal is required to determine the rent at which [NAME] 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.” 12. 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; 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.” 13. 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),

4 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 [NAME] 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.” 14. 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 15. The Tenant did not make any representations. Representations – The Landlord 16. Ms [RESPONDENT] of [NAME] completed the Reply Form on behalf of the Landlord and advised that “[NAME] is located in a sought after location with strong demand from potential tenants.” Determination 17. 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.

18. 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.

19. 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 [NAME] landlord and tenant in assessing the level of rent.

5 20. 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.

21. Similarly, the ability, or otherwise, of the Tenant to pay the rent demanded cannot be taken into account and the Tribunal is unable to take into account the Tenant’s personal circumstances as [NAME] is assumed to be “vacant and to let.” 22. In this regard, whilst the valuation exercise assumes that, regardless as to the condition of [NAME], a hypothetical tenant would be prepared to take occupation and negotiate a rent, it does not follow that the [NAME] and the hypothetical tenant are one and the same. As such, the [NAME] 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 [NAME] is vacant and to let.

23. Neither of the Parties submitted any evidence in respect of rental values. Bearing these matters in mind, the Tribunal has reviewed all the evidence provided, relied upon its own expertise and knowledge of such matters and determines the market rental of [NAME] to be £1,100 per month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

24. This rent is to be effective from 17 June 2025.

Name: [NAME] [NAME]: 29 August 2025

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. 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] 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].

6 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, [NAME], and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).