[4]On 14 November 2024 the Landlord served notice under section 13 (2) of the Housing Act 1988 to increase the passing rent from £1,100 per calendar month (pcm) to £1,300 per month with effect from 2 January 2025. This rent is stated to be exclusive of Council Tax, Water Charges and fixed service charges. The Tenant made an application dated 18 December 2024 to the Tribunal in reliance on section 13 (4) of the Housing Act 1988. The Tribunal issued directions on 6 January 2025, inviting the Parties to submit any further representations (including any photographs and details of rentals for similar properties) they wished the tribunal to consider. The Property[7]The Tribunal did not inspect the Property and has relied upon the Parties’ submissions together with information in the public domain including, but not limited to, Google Street images. The Tribunal understands that the Property comprises a detached house within a cul-de-sac that backs onto open space and provides two double bedrooms, two single bedrooms, sitting room, dining room, study, fully fitted kitchen, WC, family bathroom and ensuite bathroom. There is a single garage, garden and took shed. The Property benefits from central heating and UPVC double glazing together with carpets, curtains and White Goods. The Tenancy[9]The Tenant occupied the Property by virtue of an Assured Shorthold Tenancy that commenced 2 February 2023 for a term of 9 months. The rent reserved under this Tenancy was £1,100 pcm. 2[10]The Tenant’s obligations are set out within the Tenancy at Section 2. The Tribunal has had regard to the provisions set out therein.[13]In this regard, the Tribunal notes that paragraph 2.9 states that the Tenant is: “To keep the interior of the Premises and the fixtures and fittings of the Premises in the same repair, order and condition as at the date of this Agreement…” The Landlord’s obligations are set out in Section 3 of the Tenancy. The Tribunal notes that reference is made therein to the Landlord and Tenant Act 1985. In addition, the Tribunal would highlight paragraph 3.3 which is clear that the Landlord is responsible for the repair of installations: “…(including basins, sinks, baths and sanitary conveniences) and for space heating or heating water...” Also, paragraph 3.4 states that the Landlord is required to: “…maintain all gas and electrical appliances and central heating system (if any) and make good or replace parts which become defective due to wear and tear…” The Law[15]Section 5 (3) of the Act provides that the periodic tenancy arising on expiry of the Assured Shorthold Tenancy is one: “(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy; (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy; (c) under which the premises which are let are the same dwelling house as was let under the fixed term tenancy; (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy” Section 14 (1) of the 1988 Act provides that the Tribunal is required to determine the rent at which the Property might reasonably be expected 3 to let in the open market by a willing landlord under an assured tenancy:a. “having the same periods as those of the tenancy to which the notice relates;b. which begins at the beginning of the new period specified in the notice;c. the terms of which (other than relating to the amount of rent) are the same as those of the existing tenancy.”[18]Section 14 (2) of the 1988 Act requires the Tribunal to disregard:a. “Any effect on the rent attributable to the granting of a tenancy to a sitting tenant;b. Any increase in the value of the dwelling-house attributable to a relevant improvement (as defined by section 14 (3) of the Act) otherwise than as an obligation;c. Any reduction in the value of the dwelling-house attributable to a failure by the tenant to comply with any terms of the tenancy.” Section 11 of the Landlord and Tenant Act 1985 (the 1985 Act), provides that the Tribunal is to imply a covenant by the Landlord: a. “to keep in repair the structure and exterior of the dwelling house (including drains, gutters and external pipes), b. to keep in repair and proper working order the installations in the dwelling-house for the supply of water, gas and electricity and for sanitation (including basins, sinks, baths and sanitary conveniences, but not other fixtures, fittings and appliances for making use of the supply of water, gas or electricity), and c. to keep in repair and proper working order the installations in the dwelling-house for space heating and heating water.” Section 14 (7) of the 1988 Act states: “Where a notice under section 13(2) above has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the rent under the tenancy with effect from the beginning of the new period specified in the notice or, if it appears to the appropriate tribunal that that would cause undue hardship to the tenant, with effect from such later date (not being later than the date the rent is determined) as the appropriate tribunal may direct.” 4 Representations – The Tenant[20]The Tenant raised a number of points in respect of the current condition of the Property and the alleged historic inaction on the part of the Landlord. It was also stated that the Property requires refurbishment and updating. The Tribunal was provided with a number of comparables together with commentary on the evidence provided by the Landlord. The Tribunal has taken full account of this evidence. Representations – The Landlord[21]Shires Estate and Letting agents completed the Reply Form and provided a schedule of comparables. The Tribunal has taken full account of this evidence. Determination[27]For clarity, the Tribunal has had regard to all the correspondence and evidence provided by the Parties but is unable to refer to or make observations in respect of each point and document provided to it. 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. The current rent, and the period that has passed since that rent was agreed or determined is not relevant. Previous changes in rent are not, therefore, relevant 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. 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. 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 for money.” As such, the cost of 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. The Property is taken as it now exists and, whilst the Tribunal notes the comments made by the Tenant in respect of historic disrepair, it is only able to have regard to the current circumstances. In this context, the Tenant referred to a “…long list of repairs I have requested…” but did not provide this to the Tribunal or provide details thereof other than a 5 reference to dangerous fences, a defective WC and repairs being required to the other WC.[29]The Tribunal has therefore assumed that that Tenant has complied with Section 2 of the Tenancy but has taken into account matters for which the Landlord is responsible. Having reviewed the evidence provided by the Parties together with its own expertise and knowledge, the Tribunal determines the market rental of the Property to be £1,275 pcm effective from 2 January 2025. The rent payable may not, therefore, exceed this figure. However, this does not prevent the Landlord from charging a lower figure. Name: Peter Roberts FRICS CEnv Rights of appeal Date: 2 May 2025 By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28-day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e., give the date, the property, and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber). 6