Tribunal Rent Decision – HUGE Valuation Discrepancy?
Hi everyone, I’m hoping to get some advice on a recent Rent Tribunal decision that has completely floored us. We’re feeling pretty confused and frustrated, and wondering if we handled the preparation poorly. The Situation:
Our Valuation: Our letting agency valued a property we own at £900 per calendar month (pcm), which we believed was in line with the current market rate for a similar property.
Tenant Challenge: The tenant challenged the proposed rent increase via the Rent Tribunal (or Rent Assessment Committee/First-tier Tribunal, depending on your area).
Tribunal Decision: The tribunal completely disregarded the £900 valuation. They determined the new rent should be only £670 pcm, an increase of just £30 (approx. 5%) from the previous rate of £640 pcm.
Any insights, especially from landlords or agents who have navigated the tribunal process, would be hugely appreciated.
We need to figure out if we fight this, or just accept the loss and learn for next time?
Many thanks
Paul
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Member Since January 2020 - Comments: 559
3:29 PM, 4th October 2025, About 6 months ago
Reply to the comment left by Jessie Jones at 04/10/2025 – 11:09
I’m not sure how serious the suggestion that landlords will have to pay NI is; it could juts be a media scare tactic. That being said, the government clearly want landlords to be more commercial and actually running businesses. Those that have incorporated (perhaps as a reuslt of s24 tax) wouldn’t have to pay NI on their earnings, unless taking a salary from their business, of course, but most will take dividends.
I think our argument about percentage increases is flawed. The rent has to be a market rent. It does not matter what happens in the general market; the Rent Officer will assess the rent for your property, based on local evidence. That’s the legal basis.
Member Since August 2014 - Comments: 336
3:47 PM, 4th October 2025, About 6 months ago
Reply to the comment left by Graham Bowcock at 04/10/2025 – 15:29
Those ONS figures provide the local rent prices, not the general market. It varies considerably according to which area you are in.
Maybe NI on property income will be introduced, or maybe it won’t. Either way it is highly likely that Landlords are going to be singled out for extra tax. Additonally the Landlord Database, and the Landlords Ombudsman are both going to be funded by additional fees on Landlords, so our costs are about to jump spectacularly.
Member Since May 2015 - Comments: 2187 - Articles: 2
4:24 PM, 4th October 2025, About 6 months ago
Reply to the comment left by Jessie Jones at 04/10/2025 – 15:47
Surely you mean “proportionately” rather than spectacularly, just as £40,000 fines are “proportionate” not spectacular?
Member Since January 2020 - Comments: 559
4:34 PM, 4th October 2025, About 6 months ago
Reply to the comment left by Jessie Jones at 04/10/2025 – 15:47
Yes, the databse provides average area rents, but a landlord will still have to justify the rent for their particular property. This will reflect the actual condition and very local factors such as the qualityn of the street. In our area there are some massive rents achieved (thousands of pounds per month), which push the average up; however, there are still properties available for less than £1,000 a month.