4b Broom Hill Road, Ipswich, Suffolk, IP1 4EH: CAM/42UD/MNR/2026/0040 CAM/42UD/MNR/2026/0040
REASONS
[3]On 4 March 2026, the Landlord served a notice under Section 13(2) of the Housing Act 1988 which proposed a new rent of £1,000 per calendar month (pcm) in place of the existing rent of £800 pcm to take effect from 25 April 2026. On 6 March 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. The assured tenancy commenced on 25 July 2022 for a term of 6 months at an initial rent of £608.31 pcm. 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]N/A Liability for Council Tax[6]The Tenant is responsible for the payment of Council Tax in respect of the Property. The rent determined is exclusive of Council Tax. Any other terms of the tenancy taken into consideration in determining the rent.[7]N/A Inspection/Hearing[8]The Tribunal has considered this case on the basis of the papers provided by the parties and its own knowledge and specialist expertise. 2 The Property[9]Neither Party provided any details as to the nature of the Property or its accommodation. However, the Tribunal understands from the Council’s planning records, EPC Register and Google Images, that the Property comprises a conversion of a period detached house to provide a first floor flat comprising two bedrooms, living room, kitchen and small bathroom. Evidence The Tenant.[10]The Tenant advised that they considered the rental value to be £850 pcm to £900 pcm and advised that that had replaced the floor finishes to the kitchen and bathroom as well as redecorating throughout.[11]The main grounds of appeal related to the condition of the Property and need to carry out repairs. The Landlord[12]The Landlord has taken no part in these proceedings. Determination and Valuation[13]In determining the market rent, the Tribunal has regard to prevailing levels of rent in the general locality and achieved rental values in respect of other properties of comparable accommodation and provision that would be likely to be considered by a prospective tenant.[14]The current rent, and the period that has passed since that rent was agreed or determined is not relevant. Previous changes in rent are therefore disregarded as the Tribunal is required to assess the rent that would be offered by a prospective tenant who has no knowledge of the existing or previous rents. Similarly, historic rents achieved elsewhere are of limited relevance.[15]The legislation requires the Tribunal to have regard to market demand assuming that the landlord is willing. The Tribunal is therefore unable to have any regard to the personal circumstances or identities of the actual landlord and tenant in assessing the level of rent.[16]It is therefore irrelevant whether or not the Landlord requires the rent to be at a certain level to fund its liabilities and/or its repair obligations under the lease or whether the Tenant feels that the services provided by the Landlord are “value 3 for money.” As such, the cost of mortgage payments and property maintenance to the Landlord does not affect the rent that would be offered by a prospective tenant in the market and must be disregarded.[17]Similarly, the ability, or otherwise, of the Tenant to pay the rent demanded cannot be taken into account and the Tribunal must disregard the Tenant’s personal circumstances as the Property is assumed to be “vacant and to let.”[18]Furthermore, the valuation exercise assumes a hypothetical tenant who does not have the benefit of any knowledge obtained from being in occupation of the Property.[19]In this regard, whilst the valuation exercise assumes that, regardless as to the condition of the Property, a hypothetical tenant would be prepared to take occupation and negotiate a rent, it does not follow that the actual Tenant and the hypothetical tenant are one and the same. As such, the actual Tenant may be prepared to pay a certain level of rent to remain in occupation for personal reasons whereas the hypothetical tenant is bidding on the assumption that the Property is vacant and to let.[20]Neither Party submitted any evidence of rental values to assist the Tribunal hence it has been necessary for the Tribunal to rely on its own expert, general knowledge of rental values in the area. In this regard, the Tribunal considered that the Landlord’s proposed rent is more akin to that which would be payable for a terraced house rather than a flat within a converted house.[21]Furthermore, it is clear that the Property requires attention in order to bring it up to a standard commensurate with market expectations. In this regard, the Tenant is not required under the terms of the Tenancy to redecorate the flat such that it is appropriate to disregard such works in considering the market rent that should apply.[22]The Tribunal considers that the market rental of the subject Property if it had been refreshed and was in a standard commensurate with market expectations would be in the region of £940 pcm. However, having disregarded the works undertaken by the Tenant, the Tribunal considers that the market rental for the Property is in the region of £900 pcm. Market rent Undue hardship[23]£900 pcm 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 4 undue hardship, the Tribunal has a discretion to fix a later starting date up to the date a Tribunal makes its determination.[26]The Tenant has stated that “my daughter lost job, I’m only person who is working in this household part time.” The Landlord did not respond to the Tenant’s application. The Tribunal does not consider that the evidence provided meets the relevant threshold and does not consider that hardship has been proven. Decision[27]Therefore, the Tribunal determines the market rent at £900 per calendar month with effect from 25 April 2026. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure. 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. 5