Rent Adjustment Case: Property Condition and Financial Hardship Considered

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AU/MNR/2025/0903

Notice of the Tribunal Decision and Register of Rents under Assured Periodic Tenancies (Section 14 Determination or Section 22 Determination)

Housing Act 1988 Section 14

Address of Premises The Tribunal members were 52 [ADDRESS], [POSTCODE]

[NAME] Mr [RESPONDENT] [NAME]

Landlord [NAME] ([ADDRESS]) [RESPONDENT], [COMPANY] 99 Clapton Common London [POSTCODE]

Tenant [NAME] [APPELLANT]

1. The rent is: £ 1,875 Per Calendar month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1 February 2026

3. The amount included for services is not applicable N/A Per N/A

4. Date assured tenancy commenced 1 December 2017

5. Length of the term or rental period Monthly periodic

6. Allocation of liability for repairs S.11 Landlord & Tenant Act, 1985

7. Furniture provided by landlord or superior landlord White goods.

8. Description of premises A self-contained two bedroom flat comprising two bedrooms, reception room, kitchen, bathroom and separate WC.

[NAME] of Decision

3 February 2026

1

Case Reference

: LON/00AU/MNR/2025/0903

Property : 52 [ADDRESS], [POSTCODE]

Tenant

: [APPELLANT]

Landlord : [NAME] ([ADDRESS]) [RESPONDENT] of Objection : 22 July 2025

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

Tribunal

: Mr [NAME]

Mr [NAME] of Reasons : 3 February 2026

_______________________________________________

DECISION

The Tribunal determines a rent of £1,875 per calendar month with effect from 1 February 2026. ____________________________________

© CROWN COPYRIGHT 2026 FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

2 REASONS

Background

1. On 17 June 2025 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £2,800 per month in place of the existing rent of £1,550 per month to take effect from 1 August 2025. Whilst the notice states that the current rent is £1,550, the Tenant states that the current rent paid is £1,850 per calendar month.

2. 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 Tenant’s referral was received by the Tribunal on 22 July 2025.

3. Directions were issued on 9 October 2025 by the Tribunal.

4. The parties were invited to provide any relevant information and submissions. The Landlord and Tenant both submitted a completed reply form to support their respective cases.

5. In their reply form, the Landlord stated that they were content with a paper determination and did not require either an inspection or hearing to be held in this matter. The Tenant requested an inspection. Accordingly, an inspection was scheduled and the matter was to be dealt with by the Tribunal on the basis of the papers.

Submissions

6. The Tenant submitted a completed reply form setting out a description of the rooms within the property, condition and features of the property including central heating, carpets and curtains and white goods.

7. The Tenant states the property to be a two bedroom flat. The Tenant also states that the Landlord has never carried out any repairs to the property and that there is disrepair which includes defective window frames a kitchen extractor fan which does not work, uneven floors, water damage and a broken washing machine. The Tenant also submitted that the fire alarm is not operational.

8. The Tenant stated that if the rent was increased from 1 August this would cause financial hardship and provided evidence from their GP to support this.

9. The Landlord submitted a completed reply form in which it is states that the property is a three bedroom flat. It is also states that the property is in good condition and has double glazing provided by the Landlord.

3 10. The Tribunal is grateful to the parties for their submissions in relation to the property which have all been considered as part of their decision.

11. As there is a clear dispute over the number of bedrooms and condition of the property, an inspection was scheduled for 30 January 2026.

Inspection

12. The Tribunal inspected the property on 30 January 2026, accompanied by the Tenants, (Mr [RESPONDENT] and [NAME] [RESPONDENT] [NAME]). The landlord did not attend the inspection, but the Tribunal is satisfied that the Landlord had received prior notification of the inspection.

13. The subject property comprises rooms located on the first, second and third floor accessed via a ground floor entrance door which leads through a corridor to the rear of the building and stairs up to the first floor.

14. On the first floor, the property comprises a WC and two bedrooms. On the second floor is a kitchen, bathroom and reception room. On the second floor is an attic room which has a steep staircase and no radiators or power sockets.

15. The windows in the property are single glazed and are suffering from age related defects.

16. The property does not present well and is dated due to tired décor and old worn carpets. The kitchen fittings and bathroom furniture are dated and basic. Evidence of leaks to the ceilings of several rooms were visible.

17. The Tribunal consider the property to be a two-bedroom flat and that the attic room should only be used for storage and is not suitable for sleeping accommodation.

18. Externally to the rear there is small amount of outside space but there are limited uses given the size, layout and obstructions. There is evidence of defects to the guttering on the rear elevation.

The Law

19. The rules governing a determination of market rent are set out in section 14 of the Housing Act 1988. In particular, the tribunal is to determine the rent at which the property might reasonably be expected to be let in the open market by a willing landlord under an assured tenancy, subject to disregards in relation to the nature of the tenancy (i.e. it being granted to a “sitting tenant”) and any increase or reduction in the value due to the tenant’s improvements or failure to comply with the terms of the tenancy.

4 20. The tribunal has proceeded on the basis that the Landlord is responsible for repairs in accordance with Section 11 of the Landlord and Tenant Act, 1985.

Determination and Valuation

21. In the first instance the Tribunal determined what rent the landlord could reasonably be expected to obtain for the subject property in the open market if it were let on the determination date in the condition that is considered usual for such an open market letting. The Tribunal considered the value of the property in light of its local knowledge and experience with regard to the submissions of the Landlord and Tenant.

22. Having consideration of the evidence proved by the parties and of our own expert, general knowledge of rental values in the area, we consider that the open market rent for the subject property in good tenantable condition would be in the region of £2,500 per calendar month. From this level of rent we have made adjustments in relation to:

Tired décor and floor coverings Defective windows Dated kitchen and bathroom Overall condition

The adjustment is as follows:

per month

Market rent

£2,500

Less

Defects and Condition ) approx.. 25%

£625

£1,875

23. The Tribunal determines a rent of £1,875 per calendar month.

24. The Tribunal directs the new rent of £1,875 to take effect on 1 February 2026. The Tribunal was satisfied that a starting date of that specified in the Landlord’s notice would cause the tenant undue hardship.

Chairman: [NAME]: 3 February 2026

5

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28 day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).