First-tier Tribunal Sets Rent for Assured Tenancy Based on Market Conditions
📌 In brief
The First-tier Tribunal decided on the rent for an assured tenancy based on what the property would reasonably command in the open market. The rent was set at £975 per calendar month, as per the Housing Act 1988.
⚖️ Legal holding
The rent for an assured tenancy should be set according to what the property would reasonably command in the open market.
📖 What the law says
This section allows a tenant under an assured tenancy to apply to a tribunal to challenge the rent payable under the tenancy. The tribunal will then determine the rent based on what the property would reasonably command in the open market by a willing landlord.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal determined the rent for an assured tenancy based on market conditions.
📜 Headnote Official document
The Tribunal determined the rent for an assured tenancy based on market conditions, as per the Housing Act 1988, disregarding any improvements made by the tenant or any breaches of tenancy terms by the tenant. The rent was set at £975 per calendar month.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT 2013
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CAM/00KA/MNR/2023/0005 Property : 63 [ADDRESS] [POSTCODE] Applicant : [redacted] (Tenant) Representative : None Respondent : [redacted] (Landlord) Representative : Click That Property (Agent) Type of Application : S.13 Housing Act 1988 Determination of a new rent Tribunal Members : Mr [NAME]. [NAME] and venue of Meeting : 21 March 2023 First Tier Tribunal (Eastern) HMCTS Cambridge [POSTCODE] Date of Decision : 21 March 2023
REASONS FOR DECISION
Background
1 The First Tier Tribunal received on 6 January 2023, an application on Form 6 dated 5 January 2023, from the tenant of the Property. It was regarding a notice of increase of rent served by the landlord, under S.13 of the Housing Act 1988 (the Act).
2 The notice, dated 21 November 2022, proposed a new rent of £975 per calendar month exclusive, with effect from and including 9 January 2023. This rent does not include other services.
2
3 The tenancy is an assured periodic monthly tenancy with an initial 12 months from and including 9 August 2021 followed by a periodic monthly tenancy. A copy was provided.
4 The rent payable up to and including 8 January 2023 was £850 per calendar month. No services were included.
Directions
5 Directions, dated 19 January 2023, for the progression of the case, were issued by Legal [NAME]. Neither party asked for a hearing.
Inspection
6 There was no inspection owing to Tribunal practice under the current health regulations.
7 From Google Streetview (@ August 2012) the Tribunal could see the front and side elevations only. It appeared to the Tribunal that the flat is part of a small conventional 1980’s low rise block of similar flats. It was on part of a medium sized private housing estate with a range of small houses in short terraces and flats in other small low rise blocks.
8 This block has brick walls and tiled, double pitched single lap concrete tiles on the main roof, and areas of flat felted roofing. There appeared to be no rights to use communal outside space, garden, nor car parking. Windows were framed double glazed and space and water heater was by gas fired central heating boiler, all provided by the landlord. White goods in the kitchen were included by the landlord. There were no carpets and curtains included.
9 Externally the Property appeared to be in a fair to good condition. It was surrounded by areas of car parking mainly for residents of and visitors to the flats and houses. Use of these was not included with the demise however.
Tenant’s and Landlord’s Representations
10 The tenants provided written submissions via Application Form 6, and the standard Reply Form to the Tribunal. There appeared to be no further representations from the landlord, other than as briefly contained in the initial notice.
Law
11 In accordance with the terms of S14 of the Act we are required to determine the rent at which we consider the property might reasonably be expected to let in the open market, by a willing landlord, under an assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any
3 decrease in value due to the tenant’s failure to comply with any terms of the tenancy. Thus the Property falls to be valued as it stands; but assuming that the Property to be in a reasonable internal decorative condition.
Decision
12 From the Tribunal’s own general knowledge of market rent levels in Luton it determines that the subject property would let on normal Assured Shorthold Tenancy (AST) terms, for £975 per calendar month, fully fitted and in good order. From the representations there were no specific adjustments to be made to this figure. This leaves an unadjusted rent of £975 pcm.
Chairman N Martindale FRICS Date 21 March 2023
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) Rent Determination for New Property - Tenant Wins
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Rent Based on Market Conditions
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) Tenant Wins Rent Reduction Due to Minor Disrepair Issues
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) Rent Determination for Assured Periodic Tenancy Set by First-tier Tribunal
- First-tier Tribunal (Property Chamber) Southend Tribunal Sets Market Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent at £1,050 PCM
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines New Rent for Assured Tenancy
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Rent for Assured Tenancy
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
- Rent should reflect the open market value of the property.
- Rent must be adjusted for the condition of the property.
- Rent levels should consider any minor defects in the property.
- Rent reductions are warranted if the property suffers from minor disrepair issues.
- Rent determination should reflect the property's condition and market value, adjusted for necessary repairs.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The rent for an assured tenancy was set at £975 per calendar month.
Who was involved?
The tenant and the landlord were involved.
How did the court decide, and why?
The court decided based on market conditions, as per the Housing Act 1988.
Which laws or rules were applied?
The Housing Act 1988 sections 13 and 14 were applied.
What was the argument that mattered most?
The argument that mattered most was the market value of the property.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should consider market conditions when determining rent.
What evidence or documents mattered?
Evidence such as the notice of rent increase and the tenancy agreement mattered.
Can a decision like this be appealed?
Yes, decisions like this can be appealed to a higher court.
Is it worth getting a solicitor for a case like this?
It is recommended to seek advice from a qualified solicitor for cases like this.
