First-tier Tribunal Sets Market Rent for Assured Tenancy
📌 In brief
In a case before the First-tier Tribunal (Property Chamber), the court decided on the fair market rent for an assured tenancy based on the property's condition and location. The new rent was set at £650 per month, effective from January 2026.
⚖️ Legal holding
A tenant is entitled to have their rent set at a fair market rate based on the condition and location of the property.
📖 What the law says
This section of the Housing Act 1988 applies to certain types of assured tenancies, allowing landlords to propose increases in rent under specific conditions. It outlines the process for serving a notice to increase rent, including the minimum period after which the increase can take effect and the conditions under which further increases can be proposed.
This section of the Landlord and Tenant Act 1985 implies a covenant by the lessor to keep the structure and exterior of the dwelling-house, along with certain installations for utilities and heating, in repair and proper working order. It also specifies exceptions to these obligations, such as when the disrepair does not affect the lessee'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 tenancy after considering the condition of the property and local market rates.
📜 Headnote Official document
The First-tier Tribunal (Property Chamber) determined the market rent for an assured tenancy, considering the property's condition and local rental rates. The tenant's proposed rent was set at £650 per calendar month.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT 2026
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case Reference
MAN/ooBX/MNR/2025/1064 [ADDRESS] [POSTCODE]
Tenant
[NAME]
Tenant’s Representative
N/A
Landlord
[COUNSEL] Landlord’s [ADDRESS] [POSTCODE]
Landlord’s Representative
N/A
Date of Application
5 December 2025
Type of Application Determination of a Market Rent sections 13 & 14 of the Housing Act 1988
Tribunal Members Judge Watkin Valuer Member – [NAME] of Decision
17 Apri 2026
Rent Determined
£650 per calendar month
Date the new rent takes effect
9 January 2026
2
REASONS FOR THE DECISION
Background
1. On 5 December 2025, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £850.00 per calendar month (pcm) in place of the existing rent of £550.00 pcm to take effect from 9 January 2026.
2. On 5 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 tenancy commenced on 5 June 2022. The rental period is monthly, commencing on the 1st of each month.
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 service charges were identified as part of or separately from the rent. The Tenant stated in his application form that no furniture was provided by the Landlord.
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. No other particular tenancy terms were taken into consideration.
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 Tribunal carried out an inspection of the Property on 17 April 2026. The parties were notified of the inspection but did not attend. The Property was vacant and advertised “for sale” at the time of the inspection, and the Tribunal members were unable to inspect the interior or the rear of the Property.
10. The Property is a two-storey terraced house with yard to the front and rear, offering the following accommodation (from inspection):
Ground Floor: entrance hall, 2 x reception rooms, kitchen and bathroom First Floor: 3 x bedrooms. Roadside parking only
The Property is situated in Liverpool. The surrounding area is predominantly residential with all amenities close by.
Determination and Valuation
11. The Tribunal considered the evidence provided and used its general knowledge of Market Rents in the vicinity to decide that the Market Rent of the subject property is £650.00 per calendar month.
12. From this level of rent, the Tribunal has made adjustments in relation to the following:
a) The condition of the Property is fair but issues of damp were observed to be affecting the ground floor.
The full valuation is shown below:
Starting Rent
£750.00 pcm
Less a) Items given under a) above
£100
Market rent
£650.00 pcm
Undue hardship
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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. The Tenant has not asked the Tribunal to fix a later starting date in this case.
Decision
14. Therefore, the Tribunal determines the market rent at £650 per calendar month with effect from 9 January 2026.
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.
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rental Rate for Assured Tenancy
- First-tier Tribunal (Property Chamber) Tribunal Sets Market Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent for Coventry Apartment
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Market Rent Due to Property Issues
- First-tier Tribunal (Property Chamber) Tribunal Sets Market Rent for HMO Room: £600 PCM
- First-tier Tribunal (Property Chamber) Market Rent Determined for Assured Tenancy Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Fair Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent After Undue Hardship Claim
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 tenant referred a landlord's notice proposing a new rent under Section 13(4)(a) of the Housing Act.
- The proposed rent increase caused undue hardship.
- The landlord's proposed rent increase did not reflect the actual condition of the property and any contributions made by the tenant.
❌ Tends to be rejected
- The rent was set without considering relevant comparables and expert knowledge of rental values in the area.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The court determined the fair market rent for an assured tenancy.
Who was involved?
A tenant and a landlord were involved in setting the rental rate.
How did the court decide, and why?
The Tribunal considered the property's condition and local market rates to set the new rent.
Which laws or rules were applied?
Sections 13 and 14 of the Housing Act 1988 were used in determining the rent.
What was the argument that mattered most?
The condition of the property, including damp issues on the ground floor, influenced the decision.
Was the decision for or against the person who brought the case?
The tenant's application to set a fair market rent was successful.
What does this mean for someone in a similar situation?
Tenants can apply to the Tribunal if they believe their proposed rent is unfair based on local market conditions.
What evidence or documents mattered?
Evidence of property condition and comparable rental rates in the area were key.
Can a decision like this be appealed?
Either party may appeal the decision to the Upper Tribunal (Lands Chamber) if there is a point of law involved.
Is it worth getting a solicitor for a case like this?
It's advisable to seek legal advice from a qualified solicitor for such cases.
