Tenant Wins Reduced Rent Due to Property Disrepair

OUTCOME: Allowed

First-tier Tribunal – Property Chamber File Ref No. FR/LON/OOBB/MNR/2025/0823

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 6 PITCHFORD STREET London [POSTCODE]

[NAME] [RESPONDENT] [NAME]

[APPELLANT] [NAME]

1. The rent is: £ 1,200.00 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 19th May 2025

*3. The amount included for services is/is

negligible/not applicable N/A Per

*4. Service charges are variable and are not included

Chairman [NAME] of Decision 23.09.2025

5. Date assured tenancy commenced April 2007

6. Length of the term or rental period Monthly

7. Allocation of liability for repairs [RESPONDENT] repairs

8. Furniture provided by [RESPONDENT] or superior [RESPONDENT] N/A

9. Description of premises A 2 bedroomed Mid terraced Victorian cottage.

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference : FR/LON/00BB/MNR/2025/0823

Hearing Type : By way of written representations

Property : 6 [ADDRESS], [POSTCODE]

Applicant: [redacted] : In person

Respondent: [redacted] : In person

Date of Objection : 10 May 2025

Type of [NAME] : Referral in Respect of Market Rent Under Section 13 of the Housing Act 1988

Tribunal Members : [NAME]

Mr C Piarroux

Tribunal Member

Date of Inspection : 23rd September 2025

Date of Full Reasons : 25TH Septenmber 2025

STATEMENT OF FULL REASONS ON AN [NAME] FOR DETERMINATION OF A MARKET RENT UNDER S. 13 AND 14 OF THE HOUSING ACT 1988.

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REASONS

Background

1. On 4 April 2025 the [RESPONDENT] served a Notice under Section 13(2) of the Housing Act 1988 proposing an increase in the rent of the above property from the passing rent of £931.66 per month to £1,600.00 per month.

2. On 10 May 2025 the [APPELLANT] made an [NAME] to the Tribunal for the determination of a market rent.

3. The original tenancy is believed to have begun on 19 April 2007.

4. The [APPELLANT] occupies the property by way of an Assured Periodic Tenancy.

5. By way of a letter dated 16th July 2025, the Tribunal issued directions. These required the [RESPONDENT] to provide details of evidence on which they wished to rely by way of reply by 4th August 2025. The [APPELLANT] was directed to do the same by 18th August 2025 and the [RESPONDENT] was given until 25th August for his response thereto.

6. On 4th September 2025 the Tribunal wrote to the parties confirming details of an inspection to take place on 23 September 2025.

7. Both parties took the opportunity to make submissions.

8. In consideration of the Market rental value of the subject property, the Tribunal has taken into consideration all documentation before it, including various letters and the reply forms returned by the parties.

9. By way of a letter dated 17 April 2025, the [APPELLANT] states that the figure in the notice represents a 75% increase on the rent passing. The [APPELLANT] lists a number of issues that they believe should affect the rent, namely, a leaking toilet, rusted radiator, small bath and loose tiles in the bathroom, mould, defective windows, inoperative stove burners and evidence of mice in the kitchen. Damaged flooring and carpeting, evidence of roof leaks and general neglect and shabby decoration. These matters are reiterated in a letter to the Tribunal dated 10 May 2025 in which the [APPELLANT] also provides photographic evidence to support their contention.

10. In the [APPELLANT]’s Reply form the [APPELLANT] confirms that they would like an inspection but do not want a hearing. They provide a full description of the property with many of the defects mentioned in the paragraph above together with details of the

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accommodation and room sizes. They confirm that the property does have central heating and double glazing but advise that they have undertaken decorating and other repairs. Once again, they provide photographic evidence to show evidence of mould, external deterioration, rot to windows and defects to laminate flooring among other defects.

11. The [APPELLANT] confirms that they have been paying £900.00 since they first occupied the property ,18 years previously, and that they are aware that properties in the area could fetch rents of £1,600.00 per month but not with the defects and mould of which they complain.

12. Providing submissions on behalf of the [RESPONDENT], David Daniels, the [RESPONDENT]’s managing agents, give details from their [NAME] best price guide software.

13. They detail rents of two bedroom cottages in the subject and surrounding roads, both in 2015, and in 2025.Rents for 2015 range from £1,680.00 per calendar month to £1,517.00 per calendar month and in 2025 the rents range from £2,530.00 per calendar month to £1,800.00 per calendar month.

14. In the [RESPONDENT]’s Reply form the [RESPONDENT] confirms that they want neither a hearing nor an inspection, they provide details of room sizes and state that the property is centrally heated and double glazed. The agents confirm that they have undertaken work to the property since taking over management in 2023 when work was completed following intervention by the London Borough of Newham.

15. On 23 September 2025, on the basis of paper submissions and without a hearing, but with the benefit of an inspection, the Tribunal determined the Market rent of the above property at £1,200 per month.

Hearing 16. There was no hearing, and the issues were dealt with by way of paper representations.

Hardship

17. The Tribunal did not receive any submissions from the [APPELLANT] on hardship.

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Inspection

18. The Tribunal attended the property to undertake an inspection at 12.30pm on 23 September 2025.

19. It was apparent that the property was originally constructed as a single two bedroom mid terraced residential Victorian cottage and has subsequently been extended by way of a small single storey extension to the rear.

20. The accommodation comprises:

Ground floor – entrance hall, 2 reception rooms, kitchen, bathroom/WC. First floor – landing, 2 bedrooms. Externally – Forecourt to front garden, small garden to rear.

21. During the inspection, Ms [NAME] was present as was her daughter.

22. Neither the [RESPONDENT] nor any representative on his behalf were present.

23. All rooms were accessible.

24. The Tribunal was able to inspect the property and make its own assessment of the condition and disrepair as detailed by the [APPELLANT].

25. From the front the property appears to be in relatively good condition. Windows are double glazed, and the exterior structure is in an average condition.

26. From the garden at the rear, however, this is not the case as the windows to the bathroom, kitchen, rear reception room and a small window at first floor remain single glazed and in very poor condition with extensive wet rot evident.

27. The rear yard is concreted, small and basic in presentation.

28. Internally, the property requires decoration throughout and elements of the ceiling plaster in a number of areas are badly cracked with some skim finishes spalling.

29. There is evidence of damp at ground floor level and evidence that there has been condensation and mould with no indication that steps have been taken to rectify the cause of this.

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30. Laminate flooring that remains has reached the end of its natural life and carpet where laid is loose and worn in areas.

31. The electrical installation is limited and both kitchen and bathroom fittings ,with evidence of extensive wear and overall deterioration, are at the point where they need replacement 32. Some internal doors are broken and ill-fitting and while there is central heating at the property, radiators are antiquated, with the bathroom’s rusted to the point of collapse.

33. Overall, the property was found to be far below the standard that would be acceptable for letting on the open market.

The Law

34. When determining a market rent in accordance with the Housing Act 1988 Section 13 regard must be had to all of the circumstances (other than personal circumstances) including the age, location and state of repair of the property, matters contained within the rent, repairing obligations, etc. This means that issues such as the [APPELLANT]’s ability to pay the rent or bills associated with the property are not a consideration for the tribunal in assessing the rent.

Valuation

35. Following consideration of the written and photographic submissions given by both parties and taking into account the Tribunal’s inspection and using its own knowledge and experience of the rental market in the Stratford area, the Tribunal finds that the market rental value of the property, if it was in good condition, would be £2,000.00 per month.

36. Taking into account the lack of modernisation and the general disrepair, the Tribunal considers it necessary to adjust that market rental value to reflect specifically the following:

i) There is only partial double glazing. ii) There is evidence of damp at ground floor level. iii) There is evidence of condensation. iv) The poor condition of single glazed windows makes them virtually inoperable. v) There are extensive cracks and defects in ceiling and wall plaster. vi) The electrical installation is limited. vii) Units within the kitchen are in an appalling condition.

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viii) Fittings within the bathroom are badly worn. ix) The central heating installation is antiquated with elements severely rusted. x) Floor coverings have reached the end of their natural life. xi) Some doors within the property are broken and ill-fitting.

37. Taking these and other more general factors into consideration, the Tribunal finds that it is necessary to make a 40% deduction in the market rental value of the property to reflect its condition and lack of modernisation.

Valuation Calculation

38. Open market rent £2,000.00 per month

Deduction for adjustments detailed above 40% = £ 800.00 per month

Adjusted rent £1,200.00 per month

The Tribunal therefore determines that the market rental value of the property should be set at a figure of £1,200.00 per month.

Chairman:

[NAME]

Date:

24 September 2025

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ANNEX OF RIGHTS FOR MARKET RENTS

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 might 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 this 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. Any appeal in respect of the Housing Act 1988 should be on a point of law.

If the Tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).