Rent Assessment
When a landlord or tenant applies to the First-tier Tribunal (Property Chamber) for a rent assessment, the Tribunal follows a structured process to determine the appropriate rent. This guide explains the Tribunal’s procedures, how rents are assessed, and the Tribunal’s expanded powers under the Renters’ Rights Act 2025.
THE TRIBUNAL PROCESS
After receiving a rent assessment application, such as following a Section 13 rent increase notice, the Tribunal will notify both the landlord and tenant of the next steps. The Tribunal will either:
- Schedule a hearing and notify both parties of the hearing date; or
- Propose making a decision without a hearing and provide a deadline for objections.
If either party objects to the matter being determined without a hearing, a public hearing will usually be listed.
At the hearing, both landlord and tenant may:
- Be represented by a solicitor, barrister, or another representative;
- Present evidence;
- Call witnesses; and
- Cross-examine the other party’s witnesses.
Both parties are entitled to see documents relied upon as evidence. The Tribunal may also inspect the property as part of its assessment process.
THE TRIBUNAL’S NEW POWERS UNDER THE RENTERS’ RIGHTS ACT 2025
The Renters’ Rights Act 2025 significantly expands the Tribunal’s jurisdiction in relation to Section 13 rent increase notices.
Prior to the Renters’ Rights Act 2025, the Tribunal generally did not have jurisdiction to determine whether a Section 13 notice itself was legally valid. Questions regarding the validity of a notice were usually matters for the county court.
Under the new regime, the Tribunal now has express power to determine whether a Section 13 notice is valid.
This means the Tribunal can now consider issues such as:
- Whether the correct prescribed form was used;
- Whether the notice contained defects or inaccuracies;
- Whether sufficient notice was provided;
- Whether the notice complied with the statutory requirements under the Housing Act 1988.
Effect of an Invalid Section 13 Notice
Where a tenant challenges a rent increase and the Tribunal determines that the landlord’s Section 13 notice is invalid, the Tribunal can find that the proposed rent increase is unlawful.
In practice, this means:
- The rent increase may fail entirely;
- The proposed increased rent will not take effect; and
- The existing rent will continue unless and until a valid notice is served.
This is an important change introduced by the Renters’ Rights Act 2025, as landlords must now ensure strict compliance with the statutory requirements before serving a Section 13 notice.
PROVIDING INFORMATION TO THE TRIBUNAL
The Tribunal has the authority to require relevant information from both the landlord and tenant [1]. Failure to provide requested information may constitute a criminal offence punishable by a fine.
HOW THE TRIBUNAL ASSESSES RENT
When determining the appropriate rent, the Tribunal must disregard certain factors [2], including:
- The fact that the property is occupied by a tenant;
- Improvements carried out by the tenant [3];
- Any reduction in value caused by the tenant failing to behave in a tenant-like manner [4].
IMPACT OF POSSESSION GROUNDS ON RENT
Where a landlord served notice at the start of the tenancy indicating potential reliance on Grounds 1–5 under Schedule 2 of the Housing Act 1988, the Tribunal may take the tenant’s reduced security of tenure into account when assessing rent [5].
USE OF COMPARABLE EVIDENCE
The Tribunal determines the market rent by considering comparable properties.
Comparable evidence may be adjusted to reflect differences such as:
- Location;
- Property condition;
- Amenities; and
- Services provided.
For example:
- A property with a caretaker service may justify a higher rent than a similar property without one;
- Properties with differing bedroom numbers may still be comparable depending on overall characteristics [6].
Both parties must be given the opportunity to comment on evidence relied upon by the Tribunal before the conclusion of the proceedings [7].
LIMITATION ON RENT DETERMINATIONS
Under the Renters’ Rights Act 2025, the Tribunal can no longer determine a rent higher than the amount proposed in the landlord’s Section 13 notice.
This provides additional protection to tenants who challenge proposed increases, as tenants no longer risk the Tribunal imposing a higher rent than originally proposed by the landlord.
TRIBUNAL DECISIONS
The Tribunal’s determination will usually take effect from the date specified in the landlord’s notice, unless this would cause undue hardship to the tenant [8].
Decision Notices
The Tribunal’s decision will be provided in writing and will usually include:
- The Tribunal’s conclusions;
- Information regarding the right to request written reasons; and
- Details of any appeal rights.
Requests for written reasons must usually be made within one month of the decision notice.
APPEALS AGAINST TRIBUNAL DECISIONS
Appeals against decisions of the First-tier Tribunal are made to the Upper Tribunal (Lands Chamber) [9].
Applications for permission to appeal must generally be made within 28 days of receiving the Tribunal’s written reasons [10].
Further Appeals
Appeals from the Upper Tribunal may only proceed to the Court of Appeal on a point of law.
KEY TAKEAWAYS
- The Tribunal now has express power to determine whether a Section 13 notice is legally valid.
- Invalid Section 13 notices can result in the rent increase being declared unlawful.
- Landlords must ensure strict compliance with statutory notice requirements.
- The Tribunal cannot determine a rent higher than the amount proposed in the Section 13 notice.
- Both landlords and tenants have equal rights to present evidence and challenge the other party’s case.
Understanding the Tribunal process is essential for both landlords and tenants when dealing with rent disputes and Section 13 challenges under the new tenancy regime.
[1] s.41 Housing Act 1988.
[2] s.14(2) Housing Act 1988.
[3] Preston v London Rent Assessment Panel & Area Estates Ltd (interested party) [2014] EWHC 1206 (Admin).
[4] North Lincolnshire Homes Ltd v Bentley [2015] UKUT 451 (LC).
[5] Sch.2 Housing Act 1988.
[6] Chehab v Cadogan Estates Ltd [2018] UKUT 282 (LC).
[7] Irwell Valley Housing Association v O’Grady [2015] UKUT 310 (LC).
[8] s.14(7) Housing Act 1988.
[9] Tribunal Procedure (Amendment No. 3) Rules 2013 SI 2013/1188.
[10] reg.52 Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 SI 2013/1169.
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