Tribunal Sets New Rent After Considering Tenant Improvements

OUTCOME: Allowed

MR22 First-tier Tribunal – Property Chamber File Ref No. LON/00AC/MNR/2025/0914

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 [ADDRESS] [POSTCODE]

[NAME] Mr [RESPONDENT] JP

Landlord [RESPONDENT] of the estate of [NAME] (Deceased) c/o [NAME], 104 [ADDRESS], [POSTCODE]

Tenant [APPELLANT]

1. The rent is: £ 1350 Per Month (excluding water rates and council tax but including any amounts in paras 3)

2. The date the decision takes effect is: 1 August 2025

*3. The amount included for services is not applicable

Per

*4. Service charges are not included

5. Date assured tenancy commenced 1 March 2014

6. Length of the term or rental period Monthly Assured Periodic Tenancy

7. Allocation of liability for repairs In accordance with agreement

8. Furniture provided by landlord or superior landlord None

9. Description of premises A converted ground floor flat forming part of a two storey mid terrace Victorian building with private rear garden. Accommodation comprises: Bedroom, bathroom, living room, kitchen

[NAME] of Decision 8 December 2025

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Case Reference

: LON/00AC/MNR/2025/0914

Property : [ADDRESS], [POSTCODE]

Tenant

: [COUNSEL] : None

Landlord : [COUNSEL], [RESPONDENT] of the estate of [COUNSEL] (Deceased)

Representative : [COUNSEL] Solicitors

Date of Objection : 27 July 2025

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

Tribunal

: Mr [NAME] Mr [NAME] JP

Date of Summary Reasons : 8 December 2025

_______________________________________________

DECISION

The Tribunal determines a rent of £1,350 per calendar month with effect from 1 August 2025. ____________________________________ FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

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SUMMARY REASONS

Background

1. The Landlord served a notice under Section 13(2) of the Housing Act 1988 dated 13 June 2025 which proposed a new rent of £1,500 per calendar month in place of the existing rent of £900 per calendar month to take effect from 1 August 2025. This being an increase of £600 per calendar month

2. On 24 July 2025 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. On 10 October 2025, the Tribunal prepared amended Directions for the conduct of the case.

4. The parties did not request a hearing, to determine this matter and the Tribunal agreed with this arrangement. Therefore, this case was considered on the basis of the papers provided by the parties with the assistance of Rightmove and Google Maps.

Inspection

5. The Tribunal inspected the property on 8 December 2025 in the presence of the tenant.

Evidence

6. The Tribunal has received completed statements from both the Tenant and the Landlord. The Tenant provided comparable rental evidence of a single property in the area.

Determination and Valuation

7. The former two ground and first-floor flats have been converted into a single two storey house by the Tenant. Therefore, the Tribunal have to undertake a hypothetical valuation based upon the assumption there are two flats.

8. Having consideration of the evidence provided by the parties and our own expert, general knowledge of rental values in the Cricklewood area, we consider that the open market rent for the property in good lettable condition with modern fittings, services and private rear garden would be £1,800 per calendar month.

3 7. The Tribunal received submissions from the Tenant regarding the improvements undertaken by him during the 33 years of occupation. Using its own expertise and this evidence, we consider a deduction of £450 (25%) per month should be applied to take into account the significant improvements made by the Tenant. This reduces the rental figure to £1,350 per calendar month. It should be noted that this figure cannot be a simple arithmetical calculation and is not based on capital costs but is the Tribunal’s estimate of the amount by which the rent would need to be reduced to attract a tenant.

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 [NAME] under an assured tenancy in its current condition was £1,350 per calendar month.

9. In his witness statement the Tenant made an application to the Tribunal under s14(7) This provision allows the Tribunal to defer the date of increase to the date of determination if it appeared to the Tribunal that it would cause hardship to the tenant. The tenant states he is 69 years old and survives on a pension, savings and small income. Therefore, he would have hardship making any increase in the rental payments

10 The Tribunal has considered this request and on the balance of the evidence provided, the conclusion of the Tribunal is that there is insufficient substantiation to show such undue hardship

9. The Tribunal directs the new rent of £1,350 per calendar month to take effect on 1 August 2025. This being the date in the Landlord’s notice.

Chairman: [NAME]: 8 December 2025

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any subsequent application for permission to appeal should be made on Form RP PTA.