A landlord who sought to increase the monthly rent on a Manchester flat by £50 has instead seen the existing payment reduced by £200 following a First-tier Tribunal decision.
The furnished two-bedroom property, located at The Foundry, features two bathrooms and a balcony. Although the tribunal considered it an attractive home, it concluded that the evidence provided did not justify the proposed rental figure.
The landlord had requested an increase from £1,650 to £1,700 per month. After the tenant challenged the rise, the tribunal set the rent at £1,450 instead.
This leaves the landlord £2,400 worse off annually compared with the original rental income, rather than securing the additional £600 a year they had hoped for.
Comparable Properties Influence the Decision
Propertymark included the Manchester flat in its review of four tribunal decisions, highlighting the importance of comparable rental evidence when disputes arise.
To support the increase, the landlord referred to the property’s size, top-floor location, natural light and views.
However, the tenant presented examples of similar flats in the same building and nearby developments advertised for between £1,400 and £1,500 per month.
The tribunal placed greater emphasis on properties with similar ages, characteristics and specifications in the surrounding area.
Although no outstanding maintenance issues were identified, the furniture was described as basic but well maintained. The tribunal acknowledged the property’s appeal but determined that the evidence did not support the higher rent.
The decision was issued on 17 September, with the revised rent taking effect the following day.
Rent Increases Can Lead to Reductions
This is not the first case in which a landlord has ended up receiving less rent after seeking an increase.
Property118 previously reported on a London dispute in which a landlord’s application for a higher rent resulted in a reduction to the existing payment. Property lawyer David Smith reviewed 25 published decisions in his analysis of these cases.
Of the 24 cases in which the tribunal determined a rent, half resulted in the full increase requested by the landlord. This demonstrates how outcomes can vary depending on the circumstances and supporting evidence.
Propertymark stresses that landlords and letting agents should first establish whether the existing rent reflects current market conditions. Even a relatively small proposed increase does not guarantee that a tribunal will consider the current rent appropriate.
When preparing evidence, landlords should compare properties carefully, taking into account their size, layout, condition and the services included in the rental price.
Property Condition and Layout Affect Rental Values
Other tribunal decisions demonstrate how a property’s condition and usable space can influence the rent ultimately awarded.
In Leeds, drainage issues led to a £75 monthly reduction from the £1,000 rental value assessed for an otherwise well-maintained house. The final rent was therefore set at £925, below the landlord’s requested £950.
A separate case involving a west London flat also highlighted the importance of accurate property descriptions. Although advertised as having two bedrooms, the property measured just 39.6 square metres and did not have a conventional living room. The tribunal considered its size more comparable to a small one-bedroom property.
In Ashton-under-Lyne, evidence relating to other rooms in the same building helped establish a monthly rent of £700. This figure fell between the existing rent of £675 and the landlord’s proposed £725.
These decisions illustrate why rental assessments depend on more than the amount a landlord hopes to achieve. Property characteristics, comparable local rents and the condition of the accommodation can all affect the outcome.
Landlords and letting agents should review the relevant tribunal procedures and individual decisions before making changes to rental payments, ensuring that any proposed increase is supported by reliable market evidence.
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