Since 1 May 2026, the rules regarding the rent that landlords can charge under assured tenancies have changed substantially.
- A rent increase can only be made using the statutory rent increase procedure using Form 4A
- This can be challenged by tenants requesting the tribunal determine an open market rent for the property, so long as the application is made before the new rent is due to start
- Tenants of new tenancies can also apply for an open market rent determination during the first six months of their tenancy
We discussed this in my previous post here.
The new rules mean that landlords must be prepared to justify rents set and be in a position to support them by providing details of comparable properties.
If an application for an open market rent is made, landlords must then be sure to comply with the rules. This is illustrated by a useful First Tier Tribunal decision. The property was 8 Pierhead Lock.
What happened in the case?
The existing rent was £2,700, and the landlord served notice proposing to increase this to £3,100 per month. The tenants applied for an open market rent determination, arguing that the rent should remain at £2,700.
- The landlord failed to submit their form MR2 (which is the form landlords should use to respond to the tenant’s claim and present their arguments).
- The tenants referred to comparable properties but provided the details by links. The Tribunal said that it would not follow links and required parties to provide the full details in their representations.
- On the morning of the hearing, the Tribunal also received a document entitled “Additional Hearing Bundle”. Although it opened the email, the Tribunal declined to open or consider the material within it because it had been received too late.
- The Tribunal determined a market rent of £2,700.
There are a number of important lessons to be learned from this case. Not so much about the assessment of the rent, but about tribunal procedure.
Lessons to be learned:
Lesson 1 – do not ignore tribunal paperwork
In this case, the landlord failed to submit their Form MR2. If you are looking to increase a tenant’s rent, then if this is challenged to tribunal, you should be able to produce evidence to support this. The proper place to do this is in Form MR2.
Lesson 2 – send evidence, not just links
In this case, the decision expressly says
The Tribunal does not follow links and requires each party to provide the full details in their representations.
In practice, this means that if you are looking to rely on a listing in Rightmove or another portal, you should download or take screenshots of the full particulars of the listing, including address, asking or achieved rent, date, size, accommodation, floorplan, condition and furnishings. Listings can be changed or removed before the Tribunal considers the case.
Include the date when the information was obtained and explain why you consider it is comparable.
The Pierhead case makes it clear that the Tribunal will not follow links.
There may be security reasons why Tribunal members will not follow external links. However, the more fundamental problem is that links can expire, change or lead to material which is different by the time the case is considered.
Lesson 3 – asking rents are not necessarily market evidence
The fact that a property is advertised at £X does not mean that will be the rent which is ultimately agreed. If possible, evidence of recently achieved rents will be more useful.
If you have only asking-rent evidence, make this clear and do not describe the property as having been “let” at that rent.
Lesson 4 – explain the differences between properties
In the Pierhead case, the tribunal considered that newer developments close by were better properties and offered better facilities.
Properties with the same number of bedrooms are not necessarily comparable. Differences in size, condition, age, location, parking, balconies, views, furnishings and services such as a concierge or gym may substantially affect the rent.
Do not leave the Tribunal to identify these differences. Explain whether each comparable is better or worse than your property and how this affects the weight which should be given to it.
Lesson 5 – provide evidence about your own property
In the Pierhead case, the tribunal did not inspect the property. So it was reliant on evidence provided by the tenants, Google Street View and its own expertise.
If you do not provide details of the property yourself, the tribunal may make its decision without knowing about features which support your proposed rent.
Lesson 6 – Submit your evidence on time
An Additional Hearing Bundle was received on the morning of the hearing, but the Tribunal refused to consider it because it had been provided too late.
Time limits will be given by the tribunal in its notifications to parties. It is important that you comply with these.
Lesson 7 – if you don’t support your rent, you cannot expect the tribunal to help you
Tribunal members do have their own experience and valuation expertise. However, you should not expect them to make your case for you. If you are unable to support your rent, why should the tribunal?
Use this checklist before submitting your response:
- Have I complied with all the tribunal’s directions?
- Will my paperwork and evidence reach the tribunal before the deadline set?
- Have I provided documents and screenshots rather than links?
- Have I distinguished asking rents from achieved rents?
- Are my comparable properties genuinely similar?
- Have I explained all material differences?
- Have I provided proper information about my own property?
- Have I explained to the tribunal how the evidence I have submitted supports the rent I am asking for?
- (If you are required to provide a bundle) Is my bundle properly indexed and paginated?
And finally
The landlord in the Pierhead Lock case wanted to increase the rent by £400 per month but provided no evidence (or evidence which the tribunal could take into account) to support the increase.
We can’t know if the tribunal would have reached a different conclusion with proper evidence, but without it they had little reason to accept the increase.
If you do provide evidence, make sure you comply with the tribunal’s directions otherwise, it may not be allowed. Submit it on time, include the actual documents and explain why they support your proposed rent.
You will find the Pierhead decision here.
Note that detailed guidance on setting rents for your property and dealing with tribunal challenges can be found in the Landlord Law Market Rent and Tribunal Kit.
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