Rent Adjustment Based on Property Condition

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00BC/MNR/2025/0680

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination)

Housing Act 1988 Section 14

Address of Premises The Tribunal members were [ADDRESS], Ilford Essex 1G1 3DE

Mr [RESPONDENT]

Landlord [RESPONDENT] 137 [ADDRESS] [POSTCODE]

Tenant Mr [APPELLANT] [NAME]

1. The rent is: £ 935 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1 February 2025

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 01/07/2022

6. Length of the term or rental period Monthly Assured Periodic Tenancy

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A converted ground floor studio flat forming part of a two storey Victorian building. Accommodation comprises: studio room, kitchen, bathroom/WC..

[NAME] of Decision 10 June 2025

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Case Reference

: LON/00BC/MNR/2025/0680

Property : [ADDRESS] [POSTCODE]

Tenant

: [COUNSEL] [NAME]

Landlord : [APPELLANT] : None

Date of Objection : 27 January 2025

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

Tribunal

: Mr [NAME] of Summary Reasons

: 10 June 2025

_______________________________________________

DECISION

The Tribunal determines a rent of £935 per calendar month with effect from 1 February 2025. ____________________________________

© CROWN COPYRIGHT

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. The Landlord served a notice dated 9 December 2024 under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,250 per month in place of the existing rent of £987.60 per month to take effect from 1 February 2025.

2. On the 27 January 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. The application submitted to the Tribunal was not completed but was signed.

3. The parties did not request a hearing or inspection to determine this matter and the Tribunal agreed with this arrangement and considered this case on the basis of the limited papers provided by the parties with the assistance of Rightmove and Google Maps.

Evidence

4. The Tribunal has received completed reply forms from the parties, but no specific details of comparable evidence of rental values of studio flats in the Ilford area from the parties.

Determination and Valuation

5. Having consideration of our own expert, general knowledge of rental values in the Ilford area, we consider that the open market rent for the property in good lettable condition with modern fittings and services would be £1,100 per month. The Energy Performance Certificate dated 6 July 2019 states the studio flat is 27m2 and has an EPC Rating of 40E which is below average.

6. Next, the Tribunal needs to adjust that hypothetical rent of £1,100 per month to allow for the damaged kitchen fittings, mould to internal walls, basic decorations, basic electric panel heating system, no white goods supplied by landlord..

7. The Tribunal has considered very carefully the information provided by the tenant. Using its own expertise, the Tribunal considers that a deduction of 15% should be applied in order to take account of the above matters. This provides a deduction of £165 per month from the hypothetical rent. This reduces the figure to £1,487.50 per month.

8. It should be noted that this figure cannot be a simple arithmetical calculation and is not based upon capital costs but is the Tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

3 9. The Tribunal determines a rent of £935 per calendar month.

Decision

10. The Tribunal therefore determined that the rent at which the subject property might reasonably be expected to be let in the open market by a willing Landlord under an assured tenancy in its current condition was £935 per calendar month.

11. The Tribunal directs the new rent of £935 to take effect on the 1 February 2025. This being the date set out in the Landlord’s Notice of increase.

Chairman: [NAME]: 10 June 2025

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA.