First-tier Tribunal Sets New Market Rent for Property
📌 In brief
The First-tier Tribunal decided on a new monthly rent for a property after considering the landlord's proposal and the tenant's upgrades to the home.
⚖️ Legal holding
A tenant is entitled to a fair market rent adjustment based on the condition of the property and recent improvements.
📖 What the law says
This section applies to certain types of assured periodic tenancies, allowing landlords to serve a notice proposing an increase in rent. The notice must specify a new period for the tenancy starting at least two months after the notice is served. Additionally, if the rent has been previously increased, the next increase can only occur after a specific time frame, which varies depending on the type of tenancy.
A tenant under an assured tenancy can apply to a tribunal to challenge the rent payable under the tenancy. The tribunal will then determine the open-market rent, considering various factors including the terms of the existing tenancy and any improvements made by the tenant. However, certain improvements made by the tenant, such as those done without specific obligation to the landlord, are disregarded when determining the rent.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal set a new market rent for a property after considering the landlord's proposed increase and the tenant's improvements.
📜 Headnote Official document
The First-tier Tribunal (Property Chamber) determined a new market rent of £1,350.00 per month for a property, taking into account the landlord's proposed increase and the tenant's improvements.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
Case Reference
: BIR/OOCN/MNR/2025/0625
Property : 9 [ADDRESS] [POSTCODE]
Tenant
: [APPELLANT] [NAME]
Landlord : [APPELLANT]
Landlord’s agent :
Date of application : 8th March 2025
Type of Application : Determination of a Market Rent Sections 13 & 14 of the Housing Act 1988
Tribunal Members : Mr [NAME] Mrs [NAME] of Decision : 2nd July 2025
_______________________________________________
DECISION
The Tribunal determines a rent of £1,350.00 per month with effect from 2nd July 2025. ____________________________________
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
2 REASONS FOR THE DECISION Background
1. On 19th January 2025 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,500.00 per month in place of the existing rent of £1,000.00 to take effect from 18th March 2025.
2. On 8th March 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.
Inspection
3. The Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties and having regard to its own knowledge, expertise and online research.
Evidence
4. The Tribunal has considered the written submissions provided by the Tenant and the Landlord. From the information provided it appears that the subject property is a semi- detached house comprising living room, kitchen, three bedrooms and three bathrooms (one en-suite). The property has central heating and is double glazed. There are gardens and a garage.
5. The tenant submits that they have changed the living room carpets from carpets to laminate and replaced the upstairs landing carpets. They have re-tiled the bathroom and carried out works to the garden including shelving to the garage. They have paid for furniture and white goods.
6. The Landlord submits that the property is a new-build and that changes carried out by the Tenant are without the Landlord’s consent. Any repairs have been undertaken promptly and previous rent increases have been in line with market conditions.
Determination and Valuation
7. Having considered the comparable evidence proved by the parties and of our own expert, knowledge of rental values in the area, we consider that the open market rent for the property in good tenantable condition would be in the region of £1,450.00 per month. From this level of rent we have made adjustments in relation to:
a) White goods fitted by the Tenant. b) Tenant decorating liability
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8. The full valuation is shown below:
Market Rent
£1,450.00 per month
Less a) Items given under a) above £28.00 b) Decorating liability @ 5% say
£72.00
£100.00
£100.00
Say £1,350.00 Decision
9. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy was £1,350.00 per month with effect from 2nd July 2025.
Hardship
9. The Tenant raises hardship in their submissions and accordingly, the Tribunal directs the new rent of £1,350.00 per month is to take effect from 2nd July 2025, rather than the date set out in the Landlord’s Notice of Increase.
Chairman: [NAME]: 2nd July 2025
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.
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Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)
Housing Act 1988 Section 14
Address of Premises The Tribunal members were 9 [ADDRESS] [POSTCODE]
[NAME] Mrs [RESPONDENT]
Landlord [RESPONDENT] 82 [ADDRESS] [POSTCODE]
Tenant [NAME]
1. The rent is: £1,350.00 Per Month (excluding water rates and council tax but including any amounts in paras 3)
2. The date the decision takes effect is: 2nd July 2025
3. The amount included for services is/is not applicable N/A Per
4. Date assured tenancy commenced 18/03/2024
5. Length of the term or rental period 12 Months 6. Allocation of liability for repairs Landlord and Tenant Act 1985
7. Furniture provided by landlord or superior landlord None
8. Description of premises A semi-detached house comprising 1 living room, kitchen, three bedrooms, 3 bathrooms (1 en-suite). Double glazing. Gas central heating. Gargens and garage.
[NAME] of Decision 2nd July 2025
First-tier Tribunal – Property Chamber File Ref No.
BIR/OOCN/MNR/2025/0625
📊 How courts decide similar cases
Among 11 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Market Rent Adjustment Based on Property Condition and Improvements
- First-tier Tribunal (Property Chamber) Tribunal Reduces Proposed Rent After Considering Property Condition and Ten…
- First-tier Tribunal (Property Chamber) Tribunal Adjusts Rent After Considering Tenant Improvements
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Adjusts Market Rent for Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) Tribunal Adjusts Market Rent After Considering Property Condition
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's improvements, such as fitting white goods, reduced the market rent.
- The Tribunal's expert knowledge of local rental values was used to determine the market rent.
- The tenant's claim of hardship led to a later effective date for the new rent.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
It set a new market rent of £1,350.00 per month for the property.
Who was involved?
The landlord and the tenant were involved.
How did the court decide, and why?
The court considered the landlord's proposed rent increase and the tenant's improvements to the property.
Which laws or rules were applied?
Sections 13 and 14 of the Housing Act 1988 were applied.
What was the argument that mattered most?
The tenant's improvements to the property were a significant factor in determining the new rent.
Was the decision for or against the person who brought the case?
The decision was for the tenant.
What does this mean for someone in a similar situation?
Someone in a similar situation should consider any improvements made to the property when negotiating rent.
What evidence or documents mattered?
Written submissions from both the landlord and the tenant were considered.
Can a decision like this be appealed?
Yes, either party can apply for permission to appeal to the Upper Tribunal (Lands Chamber).
Is it worth getting a solicitor for a case like this?
It is recommended to seek advice from a qualified solicitor for cases involving rent disputes.
