First-tier Tribunal Sets New Rent at £875 for Shorthold Tenancy

OUTCOME: Allowed in Part

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : MAN/00EX/MNR/2025/0773

Property : [ADDRESS], Blackburn. [POSTCODE]

Applicant: [redacted]

Respondent: [redacted] Section 14, Housing Act 1988 – Market Rent Determination

Tribunal Members : Judge J [NAME] of Decision : 19th June 2025

DECISION

1. The rent is £875.00 per calendar month. The new rent takes effect from 1st June 2025.

REASONS

Preliminary Matters 1. In accordance with the ‘Practice Direction from the Senior President of Tribunals: Reasons for decisions’, this decision refers only to the main issues and evidence in dispute, and how those issues essential to the Tribunal’s conclusions have been resolved.

Inspection and form of determination 2. The property was inspected on 19th June 2025.

3. The Applicant only was present at the inspection. The Respondent had attended but had not been permitted access by the Applicant.

4. Neither party requested a hearing and the application was determined on the basis of the papers submitted by the parties in advance of the inspection, and the inspection.

The Law 5. The Tribunal considered and applied section 14 of the Housing Act 1988 (HA 1988).

Background to the application 6. The property ([ADDRESS], Blackburn. [POSTCODE]) is subject to an assured shorthold tenancy which commenced in August 2023.

7. This application (dated 29th April 2025) arises in consequence of service of a section 13 HA 1988 notice by the Respondent dated 9th April 2025. The notice proposed a new rent of £1,100.00 per calendar month, to take effect from 3rd August 2024, in place of the (then) current rent of £725.00 per calendar month.

Issues 8. The following issues were identified for determination by the Tribunal: a. The market rent for the property which could be achieved if it were in good letting order; b. Whether there were any matters which made it appropriate to reduce the market rent, and, if so; c. The amount of any deductions from the market rent; d. The rent to be applied to the property in the light of any deductions; e. The commencement date for the rent, including potential undue hardship to the tenant.

Relevant Evidence and the Tribunal’s Conclusions on the Issues Description and Market Rent Evidence

9. The property is a large garden-fronted mid-terraced house with red pressed brick to the front elevation and a single-storey bay window. The rear is mainly brick with some stonework. The roof is slate covered. There is a small (overgrown) rear yard.

10. There are two reception rooms and a kitchen on the ground floor. A large full- height basement (suitable for storage at present) leads out to the rear garden. Gas central heating, upvc windows, wooden front door.

11. The first floor has three bedrooms (the main bedroom being a large double) and a small bathroom comprising shower, wash basin and wc. A further two bedrooms with roof lights, have been added in the roof space together with an additional bathroom with half-sized bath/shower, wash basin and wc. This floor is accessed via a narrow, steep staircase.

12. On street parking is available at the front of the property.

13. Overall, the house has a run-down appearance and is generally in poor decorative order with old, worn or damaged floor coverings and some unfinished or poorly executed repairs to the plasterwork. Both bathrooms have had leaks which have resulted in water coming through the ceiling. The ceiling kitchen has a hole in it (unrepaired) as a result. One first floor bedroom has a makeshift repair to the ceiling from water damage from the bathroom above. The bathroom on the first floor has some evidence of mould, the cause is unclear, however the tenant did remark that this small room is used by 9 people as the other bathroom is out of use.

14. The second-floor bathroom is currently out of use as the cause of the leak is unknown at present.

15. The banister rail to the main staircase is partly detached from the wall and as timber (owned by the landlord) is currently being stored on the stairs the situation is hazardous.

16. The kitchen units are old and worn and in need of replacement. All white goods except the cooker hood are the property of the tenant.

17. There is a small amount of debris in the front and rear gardens. The rear garden is overgrown, but the tenant does not appear to have attempted to maintain this.

Rental Evidence

18. The parties have not provided any evidence.

19. A Rightmove search shows little that is directly comparable as 5 bedroomed or 4 bedroomed properties at this end of the market are in limited supply and have limited demand.

20. A search on 4/5 bedroomed within 10 miles shows:

a. [ADDRESS] (4 miles away). 3 storey, 4 bed terraced, garden fronted, good order, some fitted wardrobes, white goods in the kitchen. £900 Hunters 16/6/25;

b. [ADDRESS] (.48 miles away) 3 storey, 4 bed s/d. Nice kitchen, 3 bathrooms, gardens front and rear. £1,[ADDRESS]. Let agreed 12/6/25;

c. Railway St Chorley (8.8 miles away) 3 storey, 5 bed terraced, 1 bathroom. Garden fronted – fair/good order. £1295 Open Rent 10/6/25;

d. [ADDRESS] (9.26 miles) 3 storey, 4 bed terraced, 3 bathrooms. Pavement fronted – fair/good order. £1,200 Open Rent 13/6/25.

Conclusion

21. The subject property benefits from a large cellar providing relatively dry storage, but this is the only access to the rear garden and bins. The layout on the upper floors with a narrow staircase is not ideal.

22. In good decorative order and generally good condition the market rent would be £1,100. However, the property is some way from that and warrants an adjustment for neglect/repair of £175. The tenant’s improvements are minor – a new fire that is decorative only, and blinds to the living room, however all the white goods are also supplied by the tenant and so a global adjustment of £50 should be applied.

23. The rent payable for the property as inspected by the Tribunal is therefore £875.00 per calendar month.

24. No evidence was submitted by the Applicant to the effect that if the increased rent were applied from a date earlier than the date of the decision it would result in undue hardship, and accordingly the effective date for the new rent is 1st June 2025.