Tenant Wins Adjusted Market Rent After Improving Property Conditions
📌 In brief
In a recent case, the First-tier Tribunal decided to adjust the proposed market rent for a tenant's property. The Tribunal took into account the improvements made by the tenant and the overall condition of the property, setting the rent at £1150 per month.
⚖️ Legal holding
A tenant is entitled to a fair adjustment of the proposed market rent based on the property's condition and improvements made by the tenant.
📖 What the law says
This section applies to certain types of assured periodic tenancies, allowing landlords to serve a notice proposing an increase in rent. The notice must specify a new rent to take effect at the start of a new period, which cannot begin sooner than two months after the notice is served. Additionally, if the rent has been previously increased, the next increase can only occur after a specific period, usually one year.
A tenant under an assured tenancy can apply to a tribunal to challenge the rent payable under the tenancy. The tribunal will then determine the open-market rent, considering factors like the periods of the tenancy and any improvements made by the tenant. However, certain improvements made by the tenant, if not obligatory, are disregarded when calculating the rent.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The Tribunal adjusted the proposed market rent after considering the property's condition and improvements made by the tenant.
📜 Headnote Official document
The Tribunal determined a market rent of £1150 per month for a centrally heated and double-glazed detached 3-bedroom house, taking into account the property's condition and improvements made by the tenant. The decision was based on the Housing Act 1988 sections 13 and 14.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
Case Reference
: BIR/00CS/MNR/2024/0617
Property : 49 [ADDRESS] [POSTCODE]
Tenant
: [APPELLANT]
Landlord : Mr [RESPONDENT]
Landlord’s agent : [RESPONDENT], [NAME], [ADDRESS], Walsall. [POSTCODE]
Date of application : 23rd September 2024
Type of Application : Determination of a Market Rent sections 13 & 14 of the Housing Act 1988
Tribunal Members : [NAME]. [NAME]. [NAME]. MRICS
Date of Decision : 13 March 2025
_______________________________________________
DECISION
The Tribunal determines a rent of £1150.00 per month with effect from 14th February 2025 ____________________________________
S E C FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
2 REASONS FOR THE DECISION
Background
1. On 17th September 2024 the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1150 per month in place of the existing rent of £950 per month to take effect from 1st November 2024.
2. On 23rd September 2024, 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 the market rent.
Inspection
3. The Tribunal did not inspect the property but considered this case on the basis of the papers provided by the parties, information provided by parties during the hearing and having regard to its own knowledge, expertise and online research.
Evidence
4. The Tribunal has considered the written submissions provided by the Tenant and Landlord’s Agent together with information provided at the video hearing held on 14th February 2025.
The subject property is a centrally heated and double glazed detached 3- bedroom house located in a residential area of similar properties with tarmacadam driveway leading to a single garage, small lawned area to front and enclosed garden area to rear. The accommodation comprises entrance hallway, WC, kitchen, and living room with main bedroom with ensuite, 2 further bedrooms and family bathroom on the first floor.
The Tribunal notes from the papers submitted by the Tenant that the central heating, double glazing, carpets and curtains were provided by the Landlord however the carpets to the living room, hallway, staircase, daughter’s bedroom and main bedroom had been replaced by her in addition to replacing the ensuite carpet with laminate flooring. Further, the tribunal notes the Tenant’s letter to the Landlord’s Agent dated 23rd September 2024 within which “repair work” is requested, together with associated photographic evidence.
The Landlord’ Agent provided no submissions.
3
5. Neither party provided evidence of comparable property lettings however the Landlord’s agent indicated that in his view the market rent for 3-bedroom properties was between £1300 to £1,500 per calendar month.
Determination and Valuation
6. Having taken into account the parties’ submissions and evidence provided at the hearing together our own expert knowledge of rental values in the area, it is the Tribunal’s opinion that the open market rent for the subject property in a good tenantable condition would be £1200 per calendar month.
From this level of rent we have made adjustments in relation to:
a) The property condition b) Improvements carried out by the Tenant c) Curtains, carpets and white goods fitted by the Tenant d) The Tenant’s liability to redecorate.
7. The full valuation is shown below: Per month
Market Rent
£1200
Less a) Items given under a) above
£25
b) Items given under b) above
£20 c) Items given under c) above
£ 0 d) Tenant’s internal decoration liability £ 5 £50
£50
Say £1150
4
Decision
8. 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 was £1150 per month with effect from 15th October 2024.
Hardship
9. The Tenant raises the matter of hardship in their submissions accordingly the Tribunal directs the new rent of £1150 per month is to take effect from 1st January 2025.
Chairman: [NAME]: 14th February 2025
APPEAL PROVISIONS
If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this statement of reasons (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013) stating the grounds upon which it is intended to rely in the appeal.
5
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 49 [ADDRESS] [POSTCODE]
[NAME]. [RESPONDENT]. [RESPONDENT]. MRICS
Landlord Mr [RESPONDENT] C/o [RESPONDENT], [NAME], [ADDRESS], Walsall. [POSTCODE]
Tenant [NAME]
1. The rent is: £1150 Per month (excluding water rates and council tax but including any amounts in paras 3)
2. The date the decision takes effect is:
3. The amount included for services is not applicable
Per
4. Date assured tenancy commenced 01/01/2019
5. Length of the term or rental period 6 month fixed term 6. Allocation of liability for repairs Landlord and Tenant Act 1985
7. Furniture provided by landlord or superior landlord Kitchen furniture and white goods including cooker, hob & extractor fan.
8. Description of premises Centrally heated and double glazed detached 3-bedroom house located in a residential area of similar properties with tarmacadam driveway leading to a single garage, small lawned area to front and enclosed garden area to rear
[NAME] of Decision 14th February 2025
First-tier Tribunal – Property Chamber File Ref No.
BIR/00CS/MNR/2024/0617
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Adjusts Market Rent Based on Property Condition
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) Tribunal Reduces Proposed Rent After Considering Property Condition and Ten…
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) Rent Adjustment Granted Due to Financial Hardship
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets New Market Rent for Property
- First-tier Tribunal (Property Chamber) Tenant Entitled to Adjusted Rent After Property Condition Consideration
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 is adjusted based on the property's condition.
- Recent improvements made by the tenant are considered.
- Financial hardship faced by the tenant is taken into account.
- Comparable properties are used to determine a fair market rent.
- The proposed rent adjustment is based on both property condition and market conditions.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal set the market rent at £1150 per month, adjusting the landlord's proposed rent of £1150 based on the property's condition and tenant improvements.
Who was involved?
The tenant and the landlord were involved in the dispute over the market rent.
How did the court decide, and why?
The court decided to adjust the proposed rent downward, considering the property's condition and the improvements made by the tenant.
Which laws or rules were applied?
Sections 13 and 14 of the Housing Act 1988 were applied to determine the market rent.
What was the argument that mattered most?
The argument that mattered most was the tenant's improvements to the property and the overall condition of the property.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should consider the improvements they've made to their property when disputing a proposed market rent.
What evidence or documents mattered?
Written submissions, photographic evidence of property improvements, and the condition of the property were important.
Can a decision like this be appealed?
Yes, either party can apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this decision.
Is it worth getting a solicitor for a case like this?
It is always recommended to seek advice from a qualified solicitor for cases involving disputes over market rents.
