First-tier Tribunal Sets Market Rent at £2,400 per Month
📌 In brief
The First-tier Tribunal set the market rent for a rental property at £2,400 per month based on actual recent lettings rather than projected future increases. The decision reflects current rental values in the area.
⚖️ Legal holding
A tenant is entitled to have their market rent set at a level that reflects current rental values, not projected future increases.
📖 What the law says
This section of the Housing Act 1988 applies to certain types of assured periodic tenancies, allowing landlords to propose rent increases under specific conditions. It outlines the procedures and timing for serving notices to tenants regarding proposed rent increases.
This section implies certain repairing obligations for landlords in short leases, including the maintenance of the structure and exterior of the dwelling house, installations for utilities, and space heating and hot water systems. These obligations apply unless the disrepair affects the tenant's enjoyment of the property.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal determined the market rent for an assured shorthold tenancy based on actual rents achieved in recent lettings.
📜 Headnote Official document
The First-tier Tribunal (Property Chamber) determined the market rent for an assured shorthold tenancy based on actual rents achieved in recent lettings, rejecting projected future increases. The new rent of £2,400 per month took effect from December 22, 2025.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case Reference
HAV/29UD/MNR/2025/0847
[ADDRESS], [POSTCODE]
Tenant/Applicant [COUNSEL], R [COUNSEL] & [NAME]
Tenant’s Representative None
Landlord [COMPANY]
Landlord’s Address
Landlord’s [NAME] of Application 15th November 2025
Type of Application Determination of a Market Rent sections 13 & 14 of the Housing Act 1988
Tribunal Members [NAME] – [NAME] of Decision 11th March 2026
Rent Determined £2,400 per calendar month
Date the new rent takes effect 22nd December 2025
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REASONS FOR THE DECISION
Background
1. On 12th November 2025, the Landlord’s Agent served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,425 per calendar month (“pcm”) in place of the existing rent of £2,285 pcm to take effect from 22nd December 2025.
2. On 15th December 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.
3. The assured shorthold tenancy commenced on 22nd December 2024 for a term of 12 months. The rental period is monthly.
Allocation of Repairs between Landlord and Tenant.
4. As per section 11 of the Landlord and Tenant Act 1985.
Services Charges or furniture provided by Landlord (other than carpets and curtain and white goods specified below) and the costs relating to the same.
5. No additional charges.
Liability for Council Tax.
6. The Tenant is responsible for the payment of Council Tax in respect of the Property. The rent determined is exclusive of Council Tax.
Any other terms of the tenancy taken into consideration in determining the rent.
7. None
Inspection/Hearing
8. Neither party requested an oral hearing. The Tribunal has considered this case on the basis of the papers provided by the parties and its own knowledge and specialist expertise.
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The Property
9. The Property is a ‘Shamrock’ style house within a nearly new development of 98 residential properties all of which are owned and operated by the Landlord, offering the following accommodation:
Hall, cloakroom with WC, living room, kitchen/diner, utility room, 2 double bedrooms (one with ensuite shower room), single bedroom and bathroom with WC.
Outside: Parking space for 2 cars, gardens.
The Property benefits from heating from an electric air source heat pump, double glazing, free Broadband and a dedicated property manager for the whole development. The Energy Performance Rating is ‘B’.
The Property is situated approximately 1.5 miles east of the centre of Dartford, close to parkland, local amenities and excellent transport links.
Evidence
The Tenant.
10. The Tenant made the following comments:
a) In their application the Tenants refer to historic repair issues at the property although these have now been “remedied correctly”.
b) The Tenants state that in October 2025 an identical new build house on the same estate was advertised at £85 per month below their rent at the time. This would be £2,200 pcm.
The Landlord
11. The following comments were made by the Landlord’s Agent:
a) The Agent states that at the time of writing there are 14 comparable homes on the site of which 11 are occupied.
b) The Agent had completed three new lettings on this house type between 1st September 2025 and 6th February 2026 at £2,400 pcm and completed one new rental agreement between 1st August 2025 and 6th February 2026 at £2,425 pcm.
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c) The Agent also provided details of similar properties to rent available on Zoopla or Rightmove with asking rents between £2,513 and £3,500 per month.
d) In his statement of 6th February 2026, the Agent suggests that the proposed rent of £2,425 with effect from February 2026 is consistent with the anticipated open market rental of the property, taking into account projected rental growth into 2026.
Determination and Valuation
12. The Tribunal considers that there is a particular micro market for rental properties on this development. The homes are nearly new and energy efficient.
13. The only evidence provided was of actual rents achieved for recent lettings arranged by the Agent all at a rent of £2,400 per month. The Tribunal will not assess a rent based on projected future increases in the market.
14. Relying on its own expert, general knowledge of rental values in the area, and the comparable evidence provided by the Parties, the Tribunal considers that the market rental of the subject property is £2,400 per month.
Market rent
£2,400 pcm
Undue hardship
12. The new rent takes effect from the date specified in the Landlord’s Notice of Increase unless that would cause undue hardship to the tenant. In cases of undue hardship, the Tribunal has a discretion to fix a later starting date up to the date a Tribunal makes its determination.
13. No evidence of undue hardship was provided.
Decision
14. Therefore, the Tribunal determines the market rent at £2,400 per calendar month with effect from 22nd December 2025.
APPEAL PROVISIONS
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
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this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Sets New Rent Based on Comparable Evidence
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Market Rent Based on Actual Rents
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Manchester Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent at £900 pcm
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Shorthold Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent at £1,250 PCM
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Market Rent at £1,250 PCM
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The rent is set based on current market conditions and the state of repair of the property.
- The rent adjustment takes into account the actual condition of the property and comparable rental values in the area.
- A tenant is entitled to have their rent set at a level reflecting current rental values, not projected future increases.
- Evidence of actual rents achieved in similar properties is required when proposing a new rent.
- The market rent determination is based on actual comparable rental values, not projections.
❌ Tends to be rejected
- A landlord's proposal for rent increase must be aligned with current market rates without causing undue hardship.
- A landlord may increase rent if it reflects current market value adjusted for specific property conditions.
- A landlord can propose a new rent based on actual rental values achieved in similar properties within the same development.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The First-tier Tribunal set the market rent for a rental property at £2,400 per month.
Who was involved?
A tenant and a landlord were involved in setting the market rent for an assured shorthold tenancy.
How did the court decide, and why?
The Tribunal decided based on actual recent lettings rather than projected future increases to reflect current rental values.
Which laws or rules were applied?
Housing Act 1988 s.13 and Landlord and Tenant Act 1985 s.11 were applied.
What was the argument that mattered most?
The actual rents achieved in recent lettings mattered most to set a fair market rent.
Was the decision for or against the person who brought the case?
The decision was for the tenant, setting the rent at £2,400 per month.
What does this mean for someone in a similar situation?
Someone in a similar situation should provide evidence of actual recent lettings to support their market rent claim.
What evidence or documents mattered?
Evidence of actual rents achieved in recent lettings was crucial.
Can a decision like this be appealed?
Yes, either party can apply for permission to appeal the decision on any point of law.
Is it worth getting a solicitor for a case like this?
It is recommended to seek advice from a qualified solicitor for such cases.
