Tribunal Sets Market Rent After Tenant Improvements

OUTCOME: Allowed in Part

© CROWN COPYRIGHT

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/00BM/MNR/2026/0048

[ADDRESS], [POSTCODE]

[NAME]

Tenant’s Representative

N/A

[NAME] [APPELLANT]

Landlord’s Address

Suite 7.1, 8 Exchange Quay, Salford, [POSTCODE]

Landlord’s Representative

N/A

Date of Application

22 January 2026

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

Tribunal Members Judge S. [NAME] of Decision

16 April 2026

Rent Determined

£366.77 per fortnight

Date the new rent takes effect

7 March 2026

2

REASONS FOR THE DECISION

Background

1. On 8 January 2026, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £381.23 per fortnight in place of the existing rent of £346.77 per fortnight to take effect from 7 March 2026.

2. On 22 January 2026, 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.

3. The assured tenancy commenced on 1 November 2014 for a term of 6 months. It is now a periodic tenancy. The rental period is fortnightly.

Allocation of Repairs between Landlord and Tenant.

4. As per section 11 of the Landlord and Tenant Act 1985.

Services Charges or furniture provided by Landlord (other than carpets and curtain and white goods specified below) and the costs relating to the same.

5. There are no service charges payable under the tenancy.

6. [NAME] is let unfurnished and does not include carpets, curtains or white goods.

Liability for Council Tax

7. The Tenant is responsible for the payment of Council Tax in respect of [NAME]. The rent determined is exclusive of Council Tax.

Any other terms of the tenancy taken into consideration in determining the rent.

8. The Tribunal did not consider that any other terms of the tenancy were required to be taken into consideration in determining the rent.

Inspection/Hearing

3

9. Neither party requested an oral hearing. The Tribunal has considered this case on the basis of an inspection, the papers provided by the parties and its own knowledge and specialist expertise.

[NAME]

10. The Tribunal carried out an inspection of [NAME] on 16 April 2026 in the presence of the Tenant and a representative of the Landlord, Ms [COUNSEL].

11. [NAME] is a two-storey semi-detached house situated on a corner plot built in the c.1930s, with gardens to the front, side and rear. The roof is double pitched with hip and is slate covered. The external walls are of cavity brickwork. Windows are uPVC double glazed. The accommodation comprises:

Ground Floor: Hall, living room, kitchen and understairs store.

First Floor: 3 bedrooms (2 x double and 1 x boxroom), bathroom/w.c.

There is gas-fired central heating.

Evidence

12. Both the Tenant and the Landlord returned the Tribunal’s Reply forms.

The Tenant

13. The Tenant made the following comments:

a) The Tenant has lived at [NAME] for 24 years (having had a joint tenancy, prior to the current one). During his time at [NAME], the Tenant has made significant alterations to [NAME] including, but not limited to: • insulating the wall cavities and loft space, • fitting a new kitchen, • replastering most of [NAME], • replacing rotten front and back doors with composite doors • landscaping and paved outdoor area with other associated landscaping works, • installing a gravel driveway • erecting fencing • installing French doors and fitted wardrobes to the master bedroom.

4

b) Prior to his carrying out the above works, [NAME] was in severe disrepair.

c) [NAME] should be considered as a 2-bedroom house as the third “box” room is so small it cannot function as a bedroom. The tenant currently uses this as an office/study room.

14. In terms of rental evidence, the Tenant refers to there being council properties on the estate with rental prices for a 3-bedroom property being £455 per calendar month (£210 per fortnight).

The Landlord

15. The Landlord made the following comments:

a) A single bed can fit within the small bedroom.

b) Its proposed rent is based upon a Savills red book valuation report dated 31 December 2025 across its portfolio.

c) It has obtained a valuation report from Savills, dated 12 March 2026, in respect of [NAME] which valued [NAME] as at the date of the report at £850 per calendar month (£392.31 per fortnight).

d) It has carried out significant investment at [NAME] totalling £21,960.34 (excluding preliminary works and VAT) and which includes: • Gas safety inspection, • asbestos survey, • masonry repairs, • structural survey, • roofing works.

16. Numerous comparables were provided by the Landlord; both in a schedule and within the report from Savills. The Savills report identified 3-bedroomed properties within the locality of [NAME], and which had not been refurbished. The agreed rents for these properties ranged from £868 - £880 pcm. It also identified refurbished 3-bedroomed properties which had achieved rents of between £1,105.00 and £1,275 pcm, as well as second hand evidence of other 3-bedroomed properties with achieved rents of £1,000-£1,385 pcm.

Determination and Valuation

5

17. The Tribunal considers the comparables provided by the Landlord are relevant to this matter and notes the difference in valuation between the rents for those properties that have been refurbished and those that have not.

18. The Tenant’s references to the rent being paid for Council properties cannot be taken into consideration as these are not open market rents,

19. The Tribunal makes no adjustment for the investment the Landlord has made in respect of [NAME]. Most of the items contained in the schedule are items of repair for which the Landlord is responsible pursuant to section 11 of the Landlord and Tenant Act 1985.

20. Relying on its own expert, general knowledge of rental values in the area, and the comparables provided by the Landlord, the Tribunal considers that the market rental of the subject Property modernised and in good order would be in the order of £1,150 per calendar month (£530.77 per fortnight).

21. From this level of rent, the Tribunal has made adjustments in relation to the following:

a) furnishings, including white goods, carpets and curtains not being included b) improvements and fittings provided by the Tenant as set out in paragraph 13 above.

The full valuation is shown below:

Starting Rent

£530.77 per fortnight

Less a) Items given under a) above £54.00 b) Items given under b) above £110.00

£164.00

Market rent

£366.77 per fortnight

12. The new rent takes effect from the date specified in the Landlord’s Notice of Increase unless that would cause undue hardship to the tenant. In cases of undue hardship, the Tribunal has a discretion to fix a later starting date up to the date a Tribunal makes its determination.

13. The Tenant has not asked the Tribunal to fix a later starting date in this case.

6

Decision

14. Therefore, the Tribunal determines the market rent at £366.77 per fortnight with effect from 7 March 2026.

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.