First-tier Tribunal Sets Market Rent at £950 per Month

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/00MC/MNR/2025/0739 HMCTS code : P:PAPERREMOTE

Property : Flat 41 [NAME], Reading, Berkshire, [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] and [NAME] of Determination : 3 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.

2

Decision The Tribunal determined a market rent of £950 pm effective from 1 September 2025.

Reasons Background 1. The Landlord served notice under section 13 (2) of the Housing Act 1988 on 29 July 2025 to increase the passing rent from £675 per month to £950 per month with effect from 29 July 2025.

2. The Tenant made an application dated 23 August 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 September 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 17 October 2025.

6. The Property comprises a maisonette over a parade of shops providing a lounge and kitchen on the first floor and three bedrooms together with a family bathroom on the second floor. There is double glazing and night storage heaters, but the White Goods are provided by the Tenant.

7. The carpets are severely worn and the interior of the Property is overdue full decoration, repair and upgrading to bring it up to a standard commensurate with market expectations.

8. There is an open space comprising the roof over the retail unit and off- road carparking. Tenancy 9. The Property was previously subject to a lease dated 1 October 2013 for a period of 12 months from 1 October 2013 at a rent of £675 per month.

10. Clause 4 of the lease set out the Tenant’s obligations. These include the following: “(4)(5) To keep the interior of the Property, the internal decorations and the fixtures, fittings and appliances in the Property in good repair

3 and condition (except for damage caused by accidental fire and expect for anything which the Landlord is liable to repair under this Agreement or by law)…” 11. The Landlord’s obligations are set out in clauses 6 and 7 which includes reference to section 11 of the Landlord and Tenant Act 1985.

12. Following expiry of this lease, a Statutory Periodic Lease arose. The Law 13. 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 person who was the landlord 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” 14. 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.” 15. 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;

4 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.” 16. 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.” 17. 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 18. The Tenant raised four main issues as follows:

1) Excessive Rent Increase 2) Lack of Repairs and maintenance 3) Safety Concerns 4) Comparative Rent Levels.

19. The Tenant also confirmed that they were on Universal Credit and commented that:

5 “However, an immediate 40% increase is financially impossible for me. If the landlord insists on such an increase, I would request that they reimburse me for the substantial repair costs I have incurred and promptly carry out the necessary maintenance the property currently requires.” 20. The Tenant also submitted an email dated 6 October 2025 which made a number of statements including the following: “Additionally, I have attached details of a few nearby properties of similar size managed by same landlord agency, where tenants are paying significantly less rent that what our agency is demanding. Those properties are also much better maintained by the agency, unlike ours I am sure agency can provide you with their tenancy agreement on request. In my case, neither the landlord nor the agency has spent anything on maintenance during my 13 years of tenancy. I have personally invested a considerable amount to make the property liveable…” 21. The Tenant provided contact details in respect of flats 35 and 39 [NAME] and advised that the rents being paid were in the region of £600 to £700. These amounts are assumed by the Tribunal to be monthly. No details were provided as to when these rents were agreed. Representations – The Landlord 22. The Tribunal was provided with copies of an email dated 7 October 2025 in which the Landlord made various statements including the following: “Please note, we do not manage Flat 39 – this was sold and not our responsibility. Equally we do not manage all the properties in [NAME]… …we cannot discuss specific tenants due to GDPR and data protection, please rest assured we have tenants in the complex who are paying from around £950-£1450pcm… …In regard to maintenance we have completed all works that were under the landlord’s responsibility and when you had reported these issues… …We also believe we are being financially fair, given properties around the area going for £950pcm are 1 bedroom flats with less amenities” 23. The Landlord also provided an email dated 6 October 2025 containing links to various properties available to let and commented that: “As you can understand we are still offering under market value rent as an understanding we didn’t want to propose double the rent to the tenant and considering the duration of their tenancy. Given the have

6 (sic) a three-bedroom flat, we believe we’re considerably reasonable and hope you would agree to this conclusion.” Determination 24. 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.

25. 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.

26. 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.

27. 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.

28. 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.” 29. 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 [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 the Property is vacant and to let.

30. The Tribunal considers that the Property is in a poor state of repair and decoration and has taken this into account in considering the rental value thereof.

31. The Tenant referred the Tribunal to 35 and 39 [NAME] but did not advise the Tribunal as to the dates that those rents were agreed/determined. The quoted rents are inconsistent with current

7 open market lettings which suggests that they may be historic. In any event, the Tribunal is unable to place weight upon this evidence.

32. 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 £950 per month. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure.

33. The Tribunal appreciates that this is a significant increase from the current passing rent of £675 per month. However, the current rent was effective from 1 October 2013 since which time rents have increased significantly in the local vicinity.

34. The Tribunal has considered the Tenant’s representations in respect of hardship, but no evidence has been provided to demonstrate that the increased rental payments would not be absorbed, at least in part, by existing entitlements to benefits bearing in mind the increase in such payments since 1 October 2013. In effect, the Tenant has benefitted in increases in such benefits without any increase in rent becoming due in the meantime.

35. This rent is to be effective from 1 September 2025.

Name: [NAME] [NAME]: 3 January 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 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.

8 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).