market rent assessment
📖 What is market rent assessment? Meaning and definition
A market rent assessment occurs when a landlord serves a notice proposing a new rent, and the tenant refers this proposal to a tribunal for review. This process is governed by specific sections of the Housing Act 1988, allowing an independent body to decide what the rent should be. The tribunal's role is to determine a market rent, which is the amount a property would reasonably be expected to let for on the open market.
This assessment is particularly relevant for assured tenancies, including assured shorthold tenancies, where the landlord seeks to increase the rent. If the tenant believes the proposed new rent is too high, they have the right to challenge it by applying to the tribunal. The tribunal will then consider all submitted evidence to arrive at its decision.
The outcome of a market rent assessment is a legally binding rent determined by the tribunal, along with a specified date from which this new rent will take effect. This ensures that rent increases are fair and reflect current market conditions, protecting tenants from unreasonable demands while also allowing landlords to adjust rents appropriately.
📋 Requirements
- The landlord must have served a notice under Section 13(2) of the Housing Act 1988 proposing a new rent.
- The tenant must have referred the landlord’s notice to the tribunal for determination of a market rent under Section 13(4)(a) of the Housing Act 1988.
- The tenancy must be an assured tenancy, such as an assured shorthold tenancy.
- The tribunal considers all evidence submitted by both parties.
📝 Procedure
- Landlord serves a notice proposing a new rent to the tenant.
- Tenant refers the landlord's notice to the tribunal for determination of a market rent.
- The tribunal considers all evidence provided by the landlord and tenant.
- The tribunal determines the new market rent.
- The tribunal sets the date from which the new rent takes effect.
💡 Examples
- A landlord proposed to increase the rent for a Dagenham property from £1700.00 pcm to £2200.00 pcm, and the tenant referred this to the tribunal, which then determined the new rent.
- Tenants in Portsmouth challenged their landlord's proposed rent increase from £1550.00 pcm to £1600.00 pcm, leading the tribunal to set the market rent at £1575.00 pcm.
- After a landlord served notice to raise the rent from £800.00 pcm to £850.00 pcm for a property, the tenant applied to the tribunal, which subsequently determined the market rent to be £850.00 pcm.
- A tenant referred a landlord's notice proposing a new rent to the tribunal on 26 January 2026, and the tribunal made its decision on 12 June 2026, setting the new rent.
📚 Legal basis
- Housing Act 1988
- Landlord and Tenants Act 1985
❓ Frequently asked questions
What is the purpose of a market rent assessment?
The purpose is for an independent tribunal to determine a fair market rent for a property when a landlord proposes a rent increase and the tenant challenges it, ensuring the rent reflects current market value.
Which legal acts govern market rent assessments?
Market rent assessments are primarily governed by sections 13 and 14 of the Housing Act 1988, which outline the process for landlords proposing new rents and tenants referring these proposals to a tribunal.
Who can apply for a market rent assessment?
A tenant can apply for a market rent assessment if their landlord has served a notice proposing a new rent under Section 13(2) of the Housing Act 1988 and the tenant wishes to dispute it.
What happens after the tribunal determines the new rent?
Once the tribunal determines the new rent, it also sets a date from which this new rent will take effect, and this decision is legally binding on both the landlord and the tenant.
What kind of evidence does the tribunal consider?
The tribunal considers all evidence submitted by both the landlord and the tenant, which can include details about the property, local rental values, and the terms of the existing tenancy.
Does a market rent assessment apply to all types of tenancies?
The case excerpts indicate that market rent assessments under sections 13 and 14 of the Housing Act 1988 apply to assured tenancies, including assured shorthold tenancies.