Tribunal turns landlord’s £50 rent rise into a £200 cut

A landlord seeking an extra £50 a month has instead had the existing rent cut by £200 by the First-tier Tribunal after a tenant challenged the increase.

A landlord’s proposed £50 monthly rent rise has ended with the First-tier Tribunal cutting the existing payment by £200.

The Manchester flat had two bathrooms and a balcony, and the tribunal considered the accommodation attractive.

However, it found that the market evidence did not support the amount being sought.

The landlord wanted to increase the rent from £1,650 to £1,700 but after the tenant challenged the increase, the tribunal settled on £1,450.

Now the landlord will receive £2,400 less per year and not the extra £600 they expected.

Comparable flats carried weight

Propertymark included the furnished two-bedroom flat at The Foundry in its review of four tribunal decisions.

The landlord pointed to the flat’s size and top-floor position, along with its light and views, to justify the proposed rent.

The tenant’s evidence told a different story with details of flats in the same building and nearby developments being advertised for between £1,400 and £1,500 a month.

The tribunal gave most weight to comparisons close by that were similar in age, character and specification.

There were no ongoing maintenance problems identified.

The accommodation was attractive, it found, while the furniture was basic but in good condition.

The ruling was made on 17 September, with the new rent payable from the following day.

Existing rent is also at risk

Property118 has previously reported a London case in which a landlord’s proposed increase resulted in a cut to the existing rent.

That article covered property lawyer David Smith’s review of 25 published decisions.

Half of the 24 cases where a rent was determined resulted in the full requested increase, underlining the mixed outcomes in that early sample.

Propertymark says the starting point for landlords and agents should be whether the rent itself matches the market.

Asking for only a little more does not settle that question.

Landlords and agents also need to look closely at the properties used as evidence, checking their size, layout and condition, as well as which services the rent covers.

Condition and layout matter

Propertymark also looked at a case in Leeds, where drainage problems prompted a £75 monthly deduction from the £1,000 assessed value of a house that was in good order.

The resulting £925 rent was below the £950 sought.

Meanwhile, a west London flat described as having two bedrooms measured just 39.6 sq m and lacked a conventional lounge.

The tribunal considered its size more consistent with a small one-bedroom home.

In Ashton-under-Lyne, evidence from other rooms in the same building helped determine a £700 monthly rent, halfway between the existing £675 and proposed £725.

Propertymark advises checking the applicable procedure and individual ruling before adjusting payments.