Warnings as rent appeal upheld – with new level set below initial charge
A Manchester landlord has seen a property tribunal not only overturn a proposed £50 rent increase, but set a new rent £200 below the amount they were originally charging.
We are now reminding you how vital it is to do your due diligence before proposing increased rents to ensure they are in line with local market values.
If you don’t – as this case shows – tenants can and will challenge proposals at tribunal, even for relatively small amounts.
Housing minister Matthew Pennycook shared details of the case on social media platform X as proof ‘reforms are working’.
How did the issue come about?
The landlord had planned to increase the rent of a two-bedroomed sixth floor flat in central Manchester by £50 a month from £1,650 to £1,700.
His tenant used new powers introduced under the Renters’ Rights Act to challenge the proposal at the First-Tier Tribunal, which went on to rule the new rent should be £1,450 a month - £200 lower than the original figure.
What did the tenant say?
The tenant argued the market rent for properties in the building was around £1,400pcm and that she had been forced to pay accept £1650 back in 2025 as she was ‘desperate for housing’.
She said furnishings were basic and dated, and there had been maintenance issues including problems with a dishwasher and extractor fan, and a temporary mouse issue. She also told the tribunal she couldn’t afford to pay more.
What did the landlord say?
The landlord said the proposed rent increase reflected the open market value for similar properties in central Manchester. He also made the point his property is largest apartment in the building and, as it is on the top floor of the development, benefits from natural light and views in a way that other flats don’t.
He also argued the flat was furnished and equipped with all essentials and the proposed new rent comparable with similar properties in central Manchester.
He had asked for an oral hearing and a property inspection – both of which were refused.
What did the tribunal rule – and why?
The tribunal found that the property was attractive, and of a high specification. Despite this, they still sided with the tenant, reducing the rent.
This was primarily because they took the view that 'achieved rents' in the same, or nearby buildings of similar age, were the best comparison, preferring the tenant's evidence as a result and setting the new rent at the reduced figure of £1,450.
This new rent was introduced from the day after the hearing, 18th September.
What do I need to do when planning to increase the rent?
For assured tenancies in England you can legally increase your rent a minimum of 12 months after the last rent increase, or from the start date of the tenancy.
Rent increases must also reflect the open market rent for a comparable property in similar condition and location, so the first thing to do is research these figures.
The closer this property is to your own, the more compelling the evidence.
Take note of the issue of ‘condition’ as the standard of the property, and its fixtures and fittings will be taken into account by a tribunal.
Before proposing anything in writing you should:
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Gather comparable local market evidence.
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Check and address any disrepair, damp or mould.
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Consider how the tenant is likely to respond, and whether they can afford it.
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Weigh the cost of a potential void period against the value of the increase.
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Prepare the correct notice or form for the tenancy type.
After doing this, if you believe the increase you are proposing is fair, you must then serve a Section 13 notice, giving at least two month’s notice.
If the proposed rent increase is challenged, the Tribunal will assess whether the figure is above market rates and – as in this case – reduce it if they believe it is.
Our head of compliance James Wood said: “The Manchester case is a cautionary tale for any landlord planning to increase rents. A dispute over an additional £50 a month will now see the landlord lose out on £2,400 a year.
“If you decide to propose a rent increase you must ensure your due diligence is comprehensive and robust.
"This includes checking out achieved rather than advertised rents for similar properties in the local area, and making sure there are no issues when it comes to the condition of your property.”
More information
