First-tier Tribunal Sets Market Rent at £760 PCM

OUTCOME: Allowed

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference BIR/00GG/MNR/2024/0642

[ADDRESS] [POSTCODE] Tenant [NAME]. [COUNSEL] & Mrs [COUNSEL]

Tenant’s Representative

Landlord Mr [COUNSEL] & Mrs [COUNSEL]. [COUNSEL]

Landlord’s Address

Landlord’s Representative

Date of Application

27 November 2024 Type of Application Determination of a Market Rent sections 13 & 14 of the Housing Act 1988

Tribunal Members Judge D Barlow – Chair T. Wyn Jones MRICS

Date of Decision

15 April 2026 Rent Determined £ 760.00 per calendar month

Date the new rent takes effect

21 December 2024

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REASONS FOR THE DECISION

Background

1. On 20 November 2024, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,290.00 per calendar month(pcm) in place of the existing rent of £650.00 pcm to take effect from 21 December 2024.

2. On 27 November 2024, 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 tenancy commenced on 21 June 2010 for a term expiring on 31 January 2011. The rental period during the statutory continuance is monthly.

4. The Tenants vacated the property on 21 February 2025.

Allocation of Repairs between Landlord and Tenant.

5. As per section 11 of the Landlord and Tenant Act 1985.

Liability for Council Tax

6. The Tenants are responsible for the payment of Council Tax in respect of the Property.

Inspection/Hearing

7. The Tribunal has considered this case on the basis of an inspection on 19 August 2025, an oral hearing on 18 March 2026 at Welshpool Magistrates Court attended by both parties, the submissions and evidence provided by the parties and its own knowledge and specialist expertise.

The Property

8. The Tribunal carried out an inspection of the Property on 19 August 2025 in the presence of the Landlord. The Tenants were notified of the inspection but did not attend.

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9. The Property is a semi-detached rural property offering the following accommodation:

Portch, open plan kitchen/diner, living room, study, ground floor WC, three bedrooms, and bathroom with full suite including shower.

Outside: Garden to side and rear, workshop, three storerooms and a garden room in a separate block.

The Property is heated by a dual fuel wood burner. Water is supplied by a spring and heated by the wood burner or immersion heater. Drainage is by septic tank.

The Property is in an elevated rural position in Shropshire with views over surrounding countryside. It is approached over a private unmetalled road and is approximately 12 miles from Shrewsbury and 9 miles from Welshpool.

Evidence

10. Both the Tenant and the Landlord filed written submissions and gave oral evidence at the hearing.

The Tenant.

11. The Tenant made improvements to the property during the tenancy. A list of [] items was provided by the Tenant. The Landlord claimed to have paid for materials in respect of some items and compensated the Tenant in respect of the garden decking left behind. By the date of the hearing the parties had agreed the list of improvements and the extent of the Landlord’s contributions to them.

Photographic evidence of damp issues in one bedroom was noted. On inspection no damp was apparent.

12. The tenant did not provide comparables but made some submissions on the relevance of the Landlords evidence on valuation.

The Landlord

13. The Landlord also made improvements to property during the tenancy including roofing and damp proofing works.

14. The comparables provided by the Landlord include:

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a) 3 bedroom semi-detached house, [ADDRESS], Shrewsbury. This is marketed at £1,380pcm from 29 Aug 2024 to 9 Sep 2024. b) 3 bedroom semi-detached house, [ADDRESS] marketed from 17 Jul2023 to 24 Sep 2024 at £1,295pcm. c) 3 bedroom semi-detached house [ADDRESS] Heath marketed Nov 2024 for £1,250 pcm d) 3 bedroom semi-detached house, [ADDRESS], Bicton Heath, marketed Aug-Oct 2024 for £1.250 pcm e) 3 bedroom semi-detached house, [ADDRESS], Shrewsbury, marketed at £1200pcm from Aug 2024 to Sep 2024. f) 3 bedroom semi-detached house, [ADDRESS], Bicton Heath, marketed Oct 2024 for £1.200 pcm g) 3 bedroom semi-detached house, [ADDRESS], marketed Oct 2024 for £1,100 pcm h) 3 bedroom semi-detached house, Gate Farm, Trewern, marketed Aug-Oct 2024 for £895.00 pcm i) 3 bedroom semi-detached house, [ADDRESS], Westbury, marketed Oct 2024 £824pcm j) 3 Bedroom semi-detached house, Maes Hafren, [ADDRESS] marketed Jul-Aug 2-24 for £825pcm k) 3-bedroom semi-detached house, Llanfechain marketed from 26 October 2024 for £1,500pcm

Determination and Valuation

15. With the exception of the properties listed at (h), (i), (j) and possibly (k), the Tribunal do not consider the comparables provided by the Landlord relevant to this matter, they all show the rent sought, not the rent achieved. Apart from possibly (k) they are not in a rural location, and therefore much closer to local amenities. The submissions provided by the Tenant on the Landlord’s valuations was considered generally to be of use.

16. Relying on its own expert, general knowledge of rental values in the area as at the valuation date (21 December 2024), and the relevant comparables provided by the Landlord. The Tribunal considers that the market rental of the subject Property as at the valuation date, would be in the order of £ 800.00pcm. This is the rent we would expect the property to let for in the open market if it was in the same general condition as the comparable properties.

17. From this level of rent, the Tribunal has made adjustment of £40.oo per month in relation to the agreed list of improvements carried out by the Tenant for which

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they should not pay. The adjustment of £40.00 takes account of the Landlords agreed contribution of materials for some of the improvements.

The full valuation is:

Starting Rent

£800.00pcm

Less

Adjustment for improvements

£40.00

Market rent

£760.00 pcm

Decision

12. Therefore, the Tribunal determines the market rent at £760.00 per calendar month with effect from 21 December 2024.

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 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.