First-tier Tribunal Sets Market Rent for Redcar Property

OUTCOME: Allowed

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/00EE/MNR/2026/0027

[ADDRESS] [POSTCODE]

Tenant

[NAME] & [NAME]

Tenant’s Representative

Landlord

[APPELLANT] (Kirkleatham) [RESPONDENT] c/o [ADDRESS], [POSTCODE]

Landlord’s [NAME] of Application

15 January 2026

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

Tribunal Members JA Platt FRICS – Chair J Gittus MRICS

Date of Decision

23 April 2026

Rent Determined

£975.00 per calendar month

Date the new rent takes effect

20 January 2026

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REASONS FOR THE DECISION

Background

1. On 19 November 2025, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1085.00 per calendar month (pcm) in place of the existing rent of £1025.00 pcm to take effect from 20 January 2026.

2. On 15 January 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 20 January 2025 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. £0

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 new build 3 bedroom semi-detached house, offering the following accommodation:

Living room, kitchen / diner, downstairs wc, 3 bedrooms (one en-suite), bathroom.

Outside: rear garden and car parking space.

The Property benefits from central heating and double glazing.

The Property is situated in a new build development of similar properties to the south west of Redcar. Redcar town centre with all amenities is around two miles to the north east.

Evidence

10. Both the Tenants and the Landlord returned the Tribunal’s Reply forms.

The Tenants.

11. The Tenants provided evidence of 3 bedroom properties being offered for rent on the open market in the Redcar area at rents of £995 - £1025. These included two similar (possibly identical) properties being offered for rent by [NAME] on the same street / development at asking rents of £995 and £1025.

The Landlord

12. The Landlord provided evidence by way of a Rightmove Best Price Guide and a summary of rents being achieved at three 3 bedroom properties within their portfolio on the same development. Those rents being achieved were in the range £1085- £1100.

Determination and Valuation

13. We found the best price guide to be of limited assistance as it only provided details of properties being marketed by the Respondent and provided no information on the level of rents achieved. It did not reference either of the two properties being marketed by [NAME] identified by the tenants.

14. We also found the Respondent’s schedule of passing rents to be of limited assistance as it provided no tenancy commencement dates and did not differentiate between properties let on the open market and those where rent

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increases had been agreed with sitting tenants. Two out of the three properties listed were detached and we did not consider them to be directly comparable.

15. At the date of the decision, [NAME] was offering at least two very comparable 3 bedroom properties to rent on the open market at a rent of £975.00 pcm, both having been reduced from £995.00 on 16 April 2026. We consider these to be direct comparables although there is no guarantee that level of rent will actually be achieved.

16. We do not consider there has been any marked reduction in the level of market rents in the Redcar area since January 2026 and consider the above mentioned properties reflect the realistic level of achievable asking rents at the valuation date.

17. Having regard to the evidence provided by the parties and relying on its own expert, general knowledge of rental values in the Redcar area, the Tribunal considers that the market rental of the subject Property in good condition to be in the region of £975.00 pcm.

18. As the property is modern and in good condition, it is not necessary to make any adjustments to this level of rent.

Decision

12. The Tribunal determines the market rent at £975.00 per calendar month with effect from 20 January 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.