Tribunal Sets Market Rent for HMO Room: £600 PCM

OUTCOME: Allowed in Part

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

MAN/00BT/MNR/2026/0090

[ADDRESS], [POSTCODE]

Tenant

[NAME]

Tenant’s Representative

Landlord

[APPELLANT]

Landlord’s [ADDRESS], [POSTCODE]

Landlord’s [NAME] of Application

2 February 2026

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

Tribunal Members Tribunal Judge Steer & [NAME] of Decision

19 May 2026

Rent Determined

£600.00 per calendar month

Date the new rent takes effect

5 March 2026

2 © CROWN COPYRIGHT

REASONS FOR THE

DECISION Background 1. On 12 January 2026, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £625.00 per calendar month(pcm) in place of the existing rent of £575.00 pcm to take effect from 5 March 2026.

2. On 2 February 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 05 February 2025 for a term of 6 months. The rental period is monthly. 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 in respect of the Property which was let on a fully furnished basis. Liability for Council Tax 6. The Landlord is responsible for the payment of Council Tax in respect of the Property. The rent determined is inclusive of Council Tax. Any other terms of the tenancy taken into consideration in determining the rent.

7. The rent is inclusive of utilities and council tax and was let on a fully furnished basis. Inspection/Hearing

3 8. Neither party requested an inspection or an oral hearing. The Tribunal has considered this case on the basis of the papers provided by the parties and its own knowledge and specialist expertise. The Property 9. Room 3 is a fully furnished ground floor HMO room measuring approximately 8.75’ (2.67m) x 14.3’ (4.42m) and forming part of [ADDRESS] (“Block”). The Block is a garden fronted Victorian two storey terraced house of brick and stone construction with a tiled roof and some rendered elevations to the rear. The rent is inclusive of council tax, utilities and broadband. The Block comprised of 12 individually let rooms with shared kitchens and a living room. Some of the rooms are ensuite but the Property is not and has the use of a shared bathroom. The Property is situated in the centre of Ashton under Lyne on a busy main road within close proximity of the town centre amenities Evidence 10. Both the Tenant and the Landlord returned the Tribunal’s Reply forms. The Tenant.

11. The Tenant made the following comments: a) There was insufficient cupboard space in the kitchen and only 2 washing machines to accommodate all residents; b) The communal sinks and shower drains block frequently and require repeated intervention; c) There was a broken chair in the communal living area and an overfilled and unclean cupboard under the stairs; d) There were rats present in the yard/parking area to the rear of the Property which was also susceptible to fly-tipping; e) The Managing Agents acting on behalf of the Landlord routinely failed to provide the appropriate 24 hours’ notice for access to the Property in accordance with clause 1.32 of the tenancy agreement between the parties; f) The floor in the laundry room had been taken up and had not been replaced; g) The communal areas of the Property had not been cleaned every two weeks; and

4 h) Generally, that the rental increase proposed by the Landlord was more than the market rent for the Property when considering rents locally and rents for other rooms within the Block.

12. In terms of rental evidence, the Tenant has provided comparable properties marketed to let in the locality which showed similar properties to the Property with rents ranging from £475.00 to £575.00 pcm. The Tenant also confirmed that a larger room within the Block with an ensuite had recently received a rental increase of £660pcm. Further, Rooms 8, 5 and 4 within the Block which were of similar size to the Property and all had the use of a shared bathroom, were rented out until recently at a rent of between £595-£600pcm. The Landlord 13. The Landlord’s representative submitted that the Property benefitted from a large communal lounge and open plan kitchen and that new white goods had been provided leading to an increased rent from those comparable rooms in the locality offered by the Tenant. The Landlord’s representative offered two comparable properties in the same Block each advertised at £650 pcm. The Landlord’s Representative submitted that both of these rooms were not ensuite rooms and the occupiers would share a bathroom. Determination and Valuation 14. The Tribunal considers that the comparables provided by the Landlord and the Tenant are relevant to this matter. However, the current lettings within the Block are the best evidence. From the evidence presented the double rooms in the Block which have shared bathrooms appear to range from between £595pcm to £650pcm.

15. Relying on its own expert, general knowledge of rental values in the area, and the comparables provided by the Landlord and the Tenant, the Tribunal considers that the market rental of the subject Property is £600 pcm. This is the rent we would expect the Property to let for in the open market. The Tribunal did not consider it necessary to make any adjustments to this level of rent. Decision 16. Therefore, the Tribunal determines the market rent at £600.00 per calendar month with effect from 05 March 2026.

5 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.