Rent Adjustment for Assured Tenancy: First-tier Tribunal Decision

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AJ/MNR/2025/0959

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 16 East Vale, The Vale, Acton, London [POSTCODE]

[NAME]

[RESPONDENT] c/o [RESPONDENT] 140 [ADDRESS] [POSTCODE]

Tenant Khairn Yousef c/o [NAME]

1. The rent is: £ 1,900 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 26 September 2025

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 26 January 2017

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 Living room furniture, 2 single beds, double bed, dining table and fridge.

9. Description of premises A purpose built first floor flat forming part of a 1930’s built four storey block, accommodation comprises two bedrooms, living room, kitchen, bathroom, balcony.

[NAME] of Decision 14 January 2026

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AG/MNR/2025/0785 Property : [ADDRESS] [POSTCODE] Applicant (Tenants) :

[NAME] [COUNSEL] & Miss [COUNSEL] : None Respondent (Landlord) : [COUNSEL] [NAME] : None Type of [NAME] : Section 13(4) Housing Act 1988 Tribunal members : [NAME] [NAME] Ms [NAME] : 10 [ADDRESS] [POSTCODE] Date of Reasons : 28 January 2026

REASONED DECISION

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Decision of the tribunal (1) Having heard evidence and submissions from the parties, considered all the documentation provided and inspected the property, the Tribunal determines that the rent that the property in its current condition as at 8 April 2025 might reasonably be expected to achieve under an assured tenancy is £1,520 per month. Background 1. The tenant has lived in the property as assured periodic tenant since 2008 under a tenancy agreement which commenced on the 12 June 2008 for a period of 6 months at a rent of £1,250. A new tenancy agreement was entered into by the parties which was for a period of 6 months commencing on the 8 March 2020 at a monthly rent of £1,470 per month.

2. On 21 February 2025 the landlord served a notice pursuant to section 13(2) of the Housing Act 1988 seeking to increase the rent from £1,470 per month to £2,000 per month, being an increase of £530 per month effective from 8 April 2025.

3. By an [NAME] dated 7 April 2025, the tenant referred that notice to the Tribunal for a determination of the market rent. The Tribunal issued Directions for the conduct of the matter.

4. The original Directions were amended on the 28 October 2025 following a request from the tenants to vary and extend the timescales for the submission of evidence.

5. These reasons address in summary form the key issues raised by the parties. They do not recite each point referred to in submissions but concentrate on those issues which, in the Tribunal’s view, are fundamental to the determination.

The Evidence 6. The Tribunal has before it a bundle of evidence which includes a background to the case, the [NAME], the Directions, the two tenancy agreements, Completed statements on behalf of the landlord and the tenant. The landlord and tenant submitted details of comparable lettings in the general area. In addition, the landlord submitted a letter from Drivers and Norris, Letting Agents which recommended a marketing price of £2,200- £2,250 per month for a two bedroom flat.

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The Hearing

7. The hearing took place at 10am on the 29 January 2026 and was attended by [NAME] [NAME] & Miss [NAME] [NAME] the tenants and [NAME] [NAME] and [NAME] [NAME] [NAME] the landlords.

8. At the hearing each party was provided with the opportunity to outline their respective cases. The supporting documents set out a chronology of events and the condition of the property which on the whole is generally agreed between the parties and the Tribunal does not propose to provide the details in this decision. The parties were asked by the Tribunal to focus on the matters which affect rental value. The Tenant’s Case 9. The property was let unfurnished and over the years the property now requires refurbishment and decoration. There is no central heating, The landlord installed electric panel heaters which do not provide sufficient heating in the winter months and this needs to be supplemented with portable heaters. The kitchen and bathroom fittings are dated, there is no double glazing and no white goods, carpets or curtains were provided by the landlord. The layout of the flat is very poor and there are areas of disrepair. The tenant has provided a schedule of rental properties in the London Borough of Camden which confirms the landlords proposed rent is too high. The tenants confirmed that the maximum housing allowance for a two bedroom flat in Camden is £1,789. Therefore, based upon the comparable rental evidence presented to the Tribunal, she is of the opinion the maximum rent should be no more than this figure. The Landlord’s Case 10. The landlord contends that the comparable evidence provided in his statement provide verification that a rent increase to at least £2,000 is correct in the current market and is within the range of comparable evidence. The rent has not been increased since 2012 and therefore the rent has remained the same for 13 years. The landlords maintain they have a good relationship with the tenants but based upon the current rental level they are [NAME] a significant financial loss. Inspection 11. The Tribunal inspected the property following the hearing on the afternoon of 29 January 2026 in the presence of the tenants. The property is a converted first and second floor duplex flat which forms part of a four storey Victorian building. The building has a pitched and

4 tiled roof and brick elevations. The property is located in an established residential area close to local amenities and underground stations.

12. The crucial question for the Tribunal to determine: is this a one- or two- bedroom flat? This matter has a significant impact on rental value and has not been a matter raised by the parties. The inspection revealed that the second bedroom is a DIY loft conversion. The room is approached via an almost 90 degree timber staircase which is extremely difficult to negotiate and would not comply with Building Regulations which has a minimum pitch of 42 degrees. The loft conversion is in serious breach of fire regulations whereby there should a protected escape route with fire doors and a mains power smoke alarm, plus emergency escape openings. None of these are present. Finally, the head does not meet current regulations of 2.2m. Therefore, on all counts this room does not meet current standards and for this reason is not fit for habitation. It is a storeroom at best.

12. Therefore, the accommodation comprises: bedroom, living room, kitchen, bathroom/wc, store room. The windows are timber single glazed sash units and there are modern electric panel heaters. The kitchen and bathroom fittings are dated but functional. The common entrance is secure, and the hall and staircase are reasonably clean and tidy. The Law 13. The rules governing a determination 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. In the absence of any evidence to the contrary, the Tribunal has proceeded on the basis that the landlord is responsible for repairs to the structure, exterior and any installations pursuant to section 11 of the Landlord and Tenant Act 1985 and the tenant for interior decoration. The Valuation 14. Having carefully considered all the evidence the Tribunal considers that the rent that would be achieved for a one bedroom flat a good marketable condition with reasonably modern kitchen and bathroom fittings, modern services, carpets, curtains and white goods supplied by the landlord would be £1,900 per month. This figure is based upon the comparable evidence provided by the parties and the Tribunal’s professional judgement and experience of rental values in the Camden area.

5 15. Next, the Tribunal needs to adjust that hypothetical rent of £1,900 per month to allow for the dated and damaged kitchen and bathroom fittings, basic decorations, panel heating system, no white goods supplied by landlord. All in all, the property requires significant refurbishment and redecoration.

16. The Tribunal has considered very carefully the information provided by the tenant and the findings during the inspection. Using its own expertise, the Tribunal considers that a deduction of 20% should be applied in order to take account of the above matters. This provides a deduction of £380 per month from the hypothetical rent. This reduces the figure to £1,520 per month.

17. 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.

18. During the hearing when questioned by the Tribunal the tenant made an [NAME] to the Tribunal under s14(7) This provision allows the Tribunal to defer the date of increase to the date of determination if it appeared to the Tribunal that it would cause hardship to the tenant. The tenant confirmed they are dependent upon Government benefits, she is considered disabled. The tenant provided the Tribunal with bank statements and financial documents in support of this [NAME]. She stated that an increase in rent would cause significant hardship. The Tribunal has considered this request and on the balance of the evidence provided, the conclusion of the Tribunal is that there is insufficient substantiation to show such undue hardship.

19. Therefore, the Tribunal directs the new rent of £1,520 per month to take effect on the 8 April 2025. This, being the date of the landlord’s notice..

[NAME] 29 January 2026.

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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 [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] 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 [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).