First-tier Tribunal Sets Market Rent for HMO Room

OUTCOME: Allowed in Part

© CROWN COPYRIGHT

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/00BT/MNR/2026/0094

[ADDRESS], [POSTCODE]

[NAME]

Tenant’s [APPELLANT]

Landlord’s [ADDRESS], [POSTCODE]

Landlord’s [NAME] of Application

3 March 2026

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

Tribunal Members Tribunal Judge Steer & [NAME], FRICS

Date of Decision

14 May 2026

Rent Determined

£700.00 per calendar month

Date the new rent takes effect

8 March 2026

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REASONS FOR THE DECISION

Background

1. On 12 January 2026, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £725.00 per calendar month(pcm) in place of the existing rent of £675.00 pcm to take effect from 8 March 2026.

2. On 3 March 2026, 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 08 March 2025 for a term of 6 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. £0.

Liability for Council Tax

6. The Landlord is responsible for the payment of Council Tax in respect of the Property. The rent determined is inclusive of Council Tax.

Any other terms of the tenancy taken into consideration in determining the rent.

7. None

Inspection/Hearing

8. The Tenant requested an inspection of the Property and an oral hearing. The Tribunal has considered this case on the basis of an inspection on 14 May 2026, a hearing by video platform on 14 May 2026, the papers provided by the parties and its own knowledge and specialist expertise.

The Property

9. The Tribunal carried out an inspection of the Property on 14 May 2026 in the presence of the Tenant, the Landlord’s Representative was notified of the inspection but did not attend.

10. Room 2 is a ground floor HMO room forming part of [ADDRESS] (“Block”). This is a garden fronted Victorian two storey terraced house of brick and stone construction with a tiled roof and some rendered elevations to the rear. It offers the following accommodation:

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Communal Areas: hall, stairs and landing, open plan ground floor kitchen/lounge/dining area; first floor kitchen

HMO rooms: twelve double bedrooms

Outside: Front surfaced area and rear gated yard with some car parking space.

The Property, Room 2, benefits from heating by a double radiator, a lockable door and double glazing. It has an ensuite shower room which is half tiled and has an electric shower.

The Property is situated in the centre of Ashton under Lyne on a busy main road within close proximity of the town centre amenities

Evidence

11. Both the Tenant and the Landlord returned the Tribunal’s Reply forms.

The Tenant.

12. The Tenant made the following comments:

a) There had been an historic leak into the Property from the bathroom above the Property which had left staining on the ceiling.

b) There had been a more recent leak from the kitchen sink although this was not brought to the Tribunal’s attention or observed by the Tribunal during the inspection.

c) There were rats present in the yard/parking area to the rear of the Property.

d) There was a problem with the entry fobs which provide access the Property.

e) The Managing Agents acting on behalf of the Landlord routinely failed to provide the appropriate 24 hours’ notice for access to the Property in accordance with clause 1.32 of the tenancy agreement between the parties.

f) The floor in the laundry room had been taken up and had not been replaced.

g) The communal areas of the Property had not been cleaned every two weeks. The Tribunal observed the cleaning rota which evidenced that the communal arears had been cleaned 5 times since 15 January 2026.

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h) Generally, that the rental increase proposed by the Landlord was more than the market rent for the Property when considering the rents for other rooms within the Block.

13. In terms of rental evidence, the Tenant has provided comparable properties by way of links to rooms on www.spareroom.co.uk and www.onthemarket.com, which showed similar properties to the Property with rents ranging from £575.00 to £670.00 pcm.

The Landlord

14. The Landlord’s representative offered two comparable properties in the same Block each advertised at £650 pcm. The Landlord’s Representative submitted that both of these rooms were not ensuite rooms and they do not have any additional storage space which the Property did benefit from.

Determination and Valuation

15. The Tribunal considers that the comparables provided by the Landlord and the Tenant are relevant to this matter. However, the current achieved lettings within the property are the best evidence. During the hearing, the Tenant explained that two of the rooms in the block have been let at £725 pcm, as those tenants have not sought to appeal their rent increases. However, there are some rooms in the block let at £650 pcm. The Landlord has provided evidence of two rooms on the market for let at £650 pcm although the Landlord has confirmed that these rooms have no ensuites or additional storage areas.

16. Relying on its own expert, general knowledge of rental values in the area, and the comparables provided by the Landlord and the Tenant, the Tribunal considers that the market rental of the subject Property is £700 pcm. This is the rent we would expect the Property to let for in the open market. As the Property is modern and was observed to be in generally good condition, it is not necessary to make any adjustments to this level of rent.

Decision

12. Therefore, the Tribunal determines the market rent at £700.00 per calendar month with effect from 08 March 2026.

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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.