First-tier Tribunal Sets New Rent for Assured Shorthold Tenancy

OUTCOME: Allowed in Part

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FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/00BN/MNR/2025/1041

[ADDRESS], [POSTCODE]

Tenant

[COUNSEL] [NAME]

Tenant’s Representative

Landlord

[COUNSEL] [NAME]

Landlord’s [ADDRESS], [POSTCODE]

Landlord’s [RESPONDENT] of Application

24 October 2025

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

Tribunal Members [NAME] – [NAME] of Decision

11 May 2026

Rent Determined

£1,150.00 per calendar month

Date the new rent takes effect

1 November 2025

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REASONS FOR THE DECISION

Background

1. On 19 September 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 calendar month(pcm) in place of the existing rent of £900.00 pcm to take effect from 1 November 2025.

2. On 24 October 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 shorthold tenancy commenced on 1 May 2016 for a one year term. 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. The Tenant does not pay any service charges, The Property is let unfurnished.

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. N/A

Inspection/Hearing

8. A hearing was held on 11 May 2026 in Manchester. The Tribunal has considered this case on the basis of an inspection, an oral hearing, 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 11 May 2026 in the presence of the Tenant, the Landlord was notified of the inspection but did not attend.

10. The Property is a semi-detached house offering the following accommodation:

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Ground Floor: entrance porch and hall, open plan lounge/dining room, kitchen.

First Floor: three bedrooms, bathroom with sink, w/c and shower.

Outside: paved garden/driveway to front, rear garden, separately accessed garage.

The Property benefits from gas-fired central heating and is double glazed.

The Property is situated in the Chorlton area of Manchester within close proximity of amenities. Manchester City Centre is approximately 3 miles to the north.

Evidence

11. Both the Tenant and the Landlord provided written submissions and attended the hearing. At the hearing, the Landlord was represented by his solicitor, Mr [COUNSEL] of [RESPONDENT].

12. For completeness, the Tribunal notes that both parties made submissions relating to the wider context of the landlord/tenant relationship and raised matters which fall outside of the Tribunal’s jurisdiction in relation to this Application. Our summary of the evidence below focusses only the matters material to the rental determination.

The Tenant

13. The Tenant made the following comments in relation to the condition of the Property:

a) A serious leak from the bathroom into the kitchen.

b) Damp issues in and around the bathroom.

c) Drain blocked and backed up in rear garden.

d) Some seals to glazing defective.

e) Plaster repairs required to front bedroom.

f) Rear garage door does not lock.

14. In terms of rental evidence, the Tenant did not provide any comparable evidence.

The Landlord

15. The Landlord for his part provided a rental valuation letters from 3 local estate agents with rental estimates provided ranging between £1,450 and £2,000

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Determination and Valuation

16. The Tribunal considers the rental estimates provided by the Landlord are of only very limited value. They appear to have been prepared without the benefit of inspecting the Property and no supporting comparables are referred to. Even taking the opinions at face value, there are significant condition issues which would doubtless reduce any estate agent’s view of value if the property was inspected.

17. Relying on its own expert, general knowledge of rental values in the area, the Tribunal considers that the market rental of the subject Property modernised and in good order would be in the order of £1,500.00 pcm. This is the rent we would expect the property to let for in the open market if it was in the same general condition as the comparable properties including having white goods and curtains provided by the landlord.

18. From this level of rent, the Tribunal has made adjustments in relation to the following:

a) The unmodernised condition of the Property relative to the comparable properties. b) Issues with the condition of the Property apparent upon inspection which reduce its value including damp/mould in and around the bathroom, water damage to kitchen ceiling, blocked drain to rear and plaster issues.

The full valuation is shown below:

Starting Rent

£1,500.00 pcm Less a) Items given under a) above

£150.00 b) Items given under b) above

£200.00

£350.00

Market rent

£1,150.00 pcm

Undue hardship

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 asked the Tribunal to fix a later starting date in this case. At the hearing, the Tenant advised he was made unemployed in March and is looking for work.

14. The Landlord’s solicitor responded to the Tenant’s application for postponement due to hardship by noting that that no documentary

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evidence was provided by the Tenant in support of the submissions as to his financial position.

15. Whilst any significant increase in rent will inevitably cause some measure of hardship, in considering whether to exercise its discretion to postpone the rent increase, the question for the Tribunal is whether undue hardship will be caused. In this case, the Tribunal does not consider that a case for undue hardship is established.

Accordingly, the new rent will take effect from the date specified in the Landlord’s Notice of Increase.

Decision

16. Therefore, the Tribunal determines the market rent at £1,200.00 per calendar month with effect from 1 November 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.