First-tier Tribunal Upholds Rent Increase Request
📌 In brief
The First-tier Tribunal (Property Chamber) ruled that a landlord's request for a rent increase of £1875 per month was fair based on the current market value of the property, excluding any improvements made by the tenant.
⚖️ Legal holding
A tenant is entitled to a rent increase that reflects the open market value of the property, excluding any improvements made by the tenant.
📖 What the law says
This section allows landlords to serve a notice proposing a new rent for an assured periodic tenancy, provided the notice is in the prescribed form and specifies a new period of the tenancy starting at least two months after the notice's service.
This section permits a tenant to apply to a tribunal to challenge the rent payable under an assured tenancy, except if the rent is pursuant to a previous determination or more than six months have passed since the tenancy began.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal upheld the landlord's request for a rent increase based on the open market value of the property.
📜 Headnote Official document
The First-tier Tribunal (Property Chamber) upheld a landlord's request for a rent increase of £1875 per month, effective from September 12, 2022, based on the open market value of the property, excluding any improvements made by the tenant.
📚 Full judgment Official document
OUTCOME: Dismissed
© CROWN COPYRIGHT 2013
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : CAM/26UE/MNR/2022/0084 Property : 15 [ADDRESS] [POSTCODE] Applicant : [redacted] [COUNSEL] (Tenants) Representative : None Respondent : [redacted] Representative : None Type of Application : Section 13(4) Housing Act 1988 Tribunal Member : [NAME] and venue of Hearing :
30 December 2022
First Tier Tribunal (Eastern) HMCTS Cambridge [POSTCODE] Date of Decision : 30 December 2022
REASONS FOR DECISION
2 Background
1 The First Tier Tribunal received an application dated 5 September 2022 from the tenants of the Property, 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 11 August 2022, proposed a new rent of £1875 per calendar month exclusive, with effect from and including 12 September 2022. This rent would not include other services.
3 The tenancy is an assured periodic monthly tenancy with effect from and including 12 September 2020. The rent payable up to and including 11 September 2022 was £1600 per calendar month exclusive.
Inspection
4 The Tribunal did not inspect the Property owing to its ongoing practice reflecting the former Covid 19 restrictions.
5 The house dates from the 1930’s on a small inter-war residential estate. From Google Streetview (@ April 2018) the Tribunal could see the front external elevation only. The house is on two levels, ground and first with brick/ rendered elevations and double lap concrete tiles on a double pitched hipped roof. There is off road parking for 2 vehicles and a private garden. There are no on-street parking restrictions. Windows appeared to be in double glazed plastic frames to the front elevation.
6 The Property was said to have full gas fired central hearing with landlord’s oven and hob and carpets. The property was said to be in good condition following refurbishment, at time of letting to these tenants in 2020. The Property did not include other white goods.
Evidence and Hearing
7 Directions, dated 27 September 2022, for the progression of the case, were issued by Legal [NAME] [NAME]. Neither party requested a hearing. Both parties completed the standard questionnaire providing background information on the tenancy and the Property.
8 The landlord provided a monochrome paper copy of photographs of the property taken at the time of letting. The tenant provided a copy of the Assured Shorthold Tenancy. The landlord provided extensive details including photographs of houses to rent nearby. The tenant did not provide details of houses to rent but, supplied helpful comments on a number the landlord’s comparables properties to let.
Law
9 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
3 assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any 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
10 From the Tribunal’s own general knowledge of residential market rent levels in Potters Bar, Hertfordshire, it determines that the subject property would let on normal Assured Shorthold Tenancy (AST) terms, for £1875 per calendar month, fully fitted and in good order.
11 No significant subsisting defects at the date of valuation, 12 September 2022, were drawn to the Tribunals attention for which an allowance might have been considered in the rent. It thus determines the rent of £1875 pcm from and including 12 September 2022.
[NAME] 30 December 2022
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tenant Successfully Challenges Defective Rent Increase Notice
- First-tier Tribunal (Property Chamber) First-tier Tribunal Determines Fair Rent for Property in St Albans
- First-tier Tribunal (Property Chamber) Tribunal Sets New Fair Rent for Rural Property
- First-tier Tribunal (Property Chamber) Tenant's Challenge Rejected Due to Invalid Notice of Rent Increase
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rejects Tenant’s Service Charge Challenge
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Market Rent for Assured Tenancy Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Denies Claimant's Cost Request in Tenancy Dispute
- First-tier Tribunal (Property Chamber) Tenant Loses Challenge to Service Charges in First-tier Tribunal
- First-tier Tribunal (Property Chamber) Tenant Loses Challenge to Service Charges in First-tier Tribunal
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Reasonable and Payable
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 rent increase reflects the open market value of a comparable property.
- A tenant is entitled to a rent increase that reflects the open market value of their accommodation.
❌ Tends to be rejected
- A tenant must prove that service charges or administration fees are either not payable or unreasonable for a First-tier Tribunal to intervene.
- A landlord must determine a new fair rent by considering all circumstances including location and condition of the property, but excluding tenant improvements.
- Service charges are reasonable and payable if they are not unreasonably high.
- A tenant is entitled to pay service charges if they are reasonable and in accordance with the lease agreement.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
It decided that the landlord's request for a rent increase of £1875 per month was fair based on the current market value of the property.
Who was involved?
The tenant and the landlord were involved.
How did the court decide, and why?
The court decided based on the open market value of the property, excluding any improvements made by the tenant.
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 open market value of the property.
Was the decision for or against the person who brought the case?
The decision was against the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure their arguments align with the open market value of the property.
What evidence or documents mattered?
Photographs of the property and comparable rental properties were important.
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?
Yes, it is recommended to seek legal advice from a solicitor for such cases.
