First-tier Tribunal Sets Rent at £900 After Considering Property Condition Issues

OUTCOME: Allowed

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference MAN/00BR/MNR/2026/0119 [ADDRESS] [POSTCODE] Tenants [NAME] and [COUNSEL] Tenant’s Representative n/a Landlord [NAME] ([NAME]) [APPELLANT] c/o [ADDRESS] [POSTCODE] Landlord’s Representative Simple Life Date of Application 8th March 2026 Type of Application Determination of a Market Rent sections 13 & 14 of the Housing Act 1988 Tribunal Members Tribunal Judge J [NAME], MRICS, Valuer Member Date of Decision 19th May 2026 Rent Determined £900 Date the new rent takes effect 8th May 2026

REASONS FOR

DECISION Background to the application 1. The Respondent Landlord served a notice under Section 13(2) of the Housing Act 1988 dated 4th March 2026 which proposed a new rent of £1000.00 per calendar month(pcm) in place of the existing rent of £900.00 pcm to take effect from 8th May 2026.

2. By an application dated 8th March 2026 under Section 13(4)(a) of the Housing Act 1988, the Applicant Tenants referred the Landlord’s notice proposing a new rent to the Tribunal for determination of a market rent.

3. The assured tenancy commenced on 8th October 2021 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. N/A. Liability for Council Tax 6. The Tribunal understands the Tenants are responsible for the payment of Council Tax in respect of the Property. The rent determined is exclusive of Council Tax. Inspection and form of determination 7. No party requested an oral hearing.

8. The property was not inspected on because the Landlord confirmed in Form 1A that it agreed with the details given in the Tenants’ application form, Rents 1,

which included details of longstanding issues with the drains to the property, resulting in loss of use of the downstairs toilet for a period of days each month. (The Form 1A also indicated at Section 2.4 that the Landlord also agreed with the Tenant’s proposed market rent of £900.00, but this is assumed to be an error given the response in Section 2.5, and the evidence of comparable rents submitted by the Landlord.)

9. The application has been determined on the basis of the papers submitted by the parties in advance of the inspection and the Tribunal’s own knowledge and specialist expertise. The Law 10. The Tribunal considered and applied section 14 of the Housing Act 1988 (HA 1988). The Property 11. The property is a semi-detached house, with: to the ground floor, hallway, toilet, living room and kitchen; to the first floor, 2 bedrooms and bathroom. Externally, garden and driveway. Issues 12. 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 .

13. Both the Applicant and Respondent returned the Tribunal’s Reply forms.

14. The Applicant’s Submissions/Evidence. No comparable rental evidence was provided by the Applicant but evidence was provided of longstanding and ongoing issues with drainage, affecting use of the downstairs toilet and causing flooding to the kitchen. That evidence was unchallenged and, in the absence of any other credibility issues being identified, is accepted.

15. The Respondent’s Submissions/Evidence. The Respondent provided evidence of details of properties in the locality, with rent sought of between £1050.00 and £1250.00, the Respondent contending that “the proposed rent increase to £1000 per calendar month is fair and reasonable, and that it accurately reflects the current market rent for comparable properties in the area.” Determination and Valuation 16. Relying on its own expertise and general knowledge of rental values in the area, and the comparables provided by the Respondent, the Tribunal considers that the market rental of the subject Property modernised and in good order would be in the order of £1000.00 pcm. This is the rent the Tribunal 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/floor coverings provided by the landlord.

17. From this level of rent, the Tribunal has made adjustments in relation to the following: a. Issues with the condition of the Property which reduce its value including, specifically the drainage issues and associated distress and inconvenience. The full valuation is shown below: Starting Rent £1000.00 pcm Less Items given under a) above £100.00 Market rent £900.00 pcm

Undue hardship 18. The new rent takes effect from the date specified in the Respondent 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.

19. The Tenants provided no evidence of undue hardship and accordingly sets the starting date for the new rent as 8th May 2026. Decision 20.Therefore, the Tribunal determines the market rent at £900.00 per calendar month with effect from 8th May 2026. 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.