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AllowedFirst-tier Tribunal (Property Chamber)·

Tribunal Determines Fair Market Rent for Assured Shorthold Tenancy

Case No.

📌 In brief

The Tribunal reviewed a notice of rent increase and decided on a fair market rent for a a person in Colchester. They considered the terms of the tenancy agreement and the a person's condition, setting the new rent at £520 per month starting from April 1, 2024.

⚖️ Legal holding

Under the relevant tenancy legislation, the tribunal sets the rent based on what a willing landlord could reasonably expect to obtain for the property in the open market.

Topics

tenancy disputesfair market rent determination

Provisions

📖 What the law says

Housing Act 1988 s.13

This section applies to certain types of assured periodic tenancies, allowing landlords to serve a notice proposing a new rent increase. The notice must specify a new period starting at least two months after the notice's service date. Additionally, if the rent has been previously increased, the next increase can only occur after a specific time frame, which varies depending on the type of tenancy.

Housing Act 1988 s.14

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 the terms of the agreement. However, applications are restricted if the rent is already determined by a previous decision or if more than six months have passed since the start of the tenancy.

Plain-English explanation — does not replace advice from a solicitor.

📖 Technical summary

The tribunal determined the market rent for the property based on its current condition and terms, setting it at £520 per calendar month.

📜 Headnote Official document

The Tribunal reviewed a notice of rent increase and determined the fair market rent for a property in Colchester, considering the terms of the tenancy agreement and the property's condition. The new rent was set at £520 per calendar month, effective from April 1, 2024.

📚 Full judgment Official document

OUTCOME: Allowed

© CROWN COPYRIGHT 2013 FIRST-TIER TRIBUNAL [NAME] CHAMBER ([NAME]) Case Reference : CAM/22UG/MNR/2024/0070 [NAME] : [ADDRESS] [POSTCODE] Applicant : [redacted] (Tenant) Representative : None Respondent : [redacted] (Landlord) Representative : None Type of Application : Section 13(4) Housing Act 1988 Tribunal Members : Mr [NAME] and venue of Hearing : 29 [ADDRESS] [POSTCODE] Date of Decision : 29 May 2024

REASONS FOR

DECISION Background 1 The First Tier Tribunal received an application dated 24 March 2024 from the tenant of the [NAME], regarding a notice of increase of rent, served by the landlord, under S.13 of the Housing Act 1988. 2 The notice, apparently undated, proposed a new rent of £518.06 per calendar month with effect from and including 1 April 2024. The passing rent was stated in the notice, as £401.29 per calendar month. It

2 was unclear when this passing rent had been set. The new rent included a service charge of £206.06 pcm. The passing rent included a service charge of £101.29 pcm. 3 The tenancy is an assured shorthold periodic monthly tenancy. A copy of the tenancy and of the landlord’s Notice were provided. Inspection 4 The Tribunal did not inspect the [NAME] internally but viewed the exterior from [ADDRESS] images of the [NAME] from the public road (data capture @ November 2022). The [NAME] is a room in a shared house. The house is an end terraced dwelling, part of a short modern terrace of similar houses dating from the 2000’s. The terrace is part of a more recent development in the 2000’s, set at the corner of a larger established suburban housing estate, dating from the 1960s. 5 The [NAME] is a first floor bedroom in the house at No.34. The house is occupied by 2 client tenants and 1 support worker engaged by the landlord, 3 sharers in all. The [NAME] is let out as 1 of 3 individual bedrooms. There is a ground floor communal kitchen, living room, WC, and first floor bathroom/ WC. There I shared internal circulation space, gardens and a small provision of off street parking to the front. There are no on-street parking restrictions. 6 The house of which the [NAME] forms a small part, has brick faced elevations. There is a double pitched main roof finished in plain tiles. Windows and front door to the shared area appear to be of plastic with double glazed units. The front exterior appears in good condition. 7 In addition to exclusive use of the [NAME], it is assumed that the tenant has shared use of a ground floor communal living room, and kitchen for cooking and laundry. The kitchen is assumed to be supplied with white goods including cooker and hob and washing machine. The living room and the [NAME] are assumed to be furnished in a functional manner by the landlord but no details were provided. Carpets and curtains are also assumed as provided by the landlord. The rent assumes landlord provision of hot and cold water and waste removal, gas fired central heating, electricity, gas, council tax, broadband internet. Tenant’s Representations 8 Directions, dated 2 April 2024, for the progression of the case, were issued by Legal [NAME]. A hearing was not requested. The standard Reply Form was sent to parties, which neither party returned a completed version, however the tenant’s initial Form 6 application referring the matter to the Tribunal, did include many of the basic details about the accommodation. There were no particular representations other than setting out the basic lease terms.

3 Landlord’s Representations 9 The Tribunal did not receive any representations from the landlord. 10 The Tribunal carefully considered such written details and representations as it received, from both parties. Law 11 In accordance with the terms of S.14 of the Act the Tribunal is required to determine the rent at which it considers the [NAME] might reasonably be expected to let in the open market, by a willing landlord, under an assured tenancy, on the same terms as the actual tenancy; ignoring any increase in value attributable to tenant’s improvements and any decrease in value due to the tenant’s failure to comply with any terms of the tenancy. Thus the [NAME] falls to be valued as it stands; but assuming that it is in a reasonable internal decorative condition. Decision 12 Based on the Tribunal’s own general knowledge of market rent levels in Colchester, it determines that the [NAME] would let on normal Assured Shorthold Tenancy (AST) terms, for £520 per calendar month, fully fitted and in good order, fully serviced, all bills included. This sum includes the new fixed service charge of £206.06 payable by the tenant to the landlord as part of their rent from 1 April 2024. 13 There were no tenant’s improvements or additions. There appeared to be no evidence of a shortfall or deficiency of service provided or condition of the [NAME] or shared areas. The Tribunal did not adjust this figure therefore. 14 The new rent of £520 pcm is payable from and including the date set out in the Landlord’s Notice, 1 April 2024. The landlord is not obliged to charge this rent but, may not charge more. [NAME] 29 May 2024 Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) ([NAME] Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. 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.

4 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 decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) ([NAME] Chamber) Rule 2013). 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 [NAME], 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).

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

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 tribunal determined the rent based on its knowledge of market levels for similar properties in the area.
  • The new rent includes a fixed service charge that is payable by the tenant to the landlord.
  • The property is valued as it stands, assuming it is in a reasonable internal decorative condition.
  • The tribunal found no evidence that the tenant had made improvements that would increase the property's value.
  • The tribunal found no evidence of a shortfall in services or poor condition of the property.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The Tribunal set the fair market rent for the property at £520 per month starting from April 1, 2024.

Who was involved?

The tenant and the landlord were involved in the dispute over the rent increase.

How did the court decide, and why?

The court decided based on the terms of the tenancy agreement and the condition of the property, ensuring the rent reflects fair market value.

Which laws or rules were applied?

The Housing Act 1988 sections 13 and 14 were applied to determine the fair market rent.

What was the argument that mattered most?

The argument that mattered most was the condition of the property and the terms of the tenancy agreement.

Was the decision for or against the person who brought the case?

The decision was for the tenant, setting a fair market rent based on the property's condition and tenancy terms.

What does this mean for someone in a similar situation?

Someone in a similar situation should consider the terms of their tenancy agreement and the condition of their property when disputing a rent increase.

What evidence or documents mattered?

Evidence and documents such as the tenancy agreement and the landlord's notice of rent increase mattered in the decision.

Can a decision like this be appealed?

Yes, either party can apply for permission to appeal to the Upper Tribunal (Lands Chamber) within 28 days of the decision.

Is it worth getting a solicitor for a case like this?

It is recommended to seek advice from a qualified solicitor for cases involving rent disputes.

Official source: First-tier Tribunal (Property Chamber) headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the First-tier Tribunal (Property Chamber) and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.