A landlord company has failed in its bid to increase a tenant’s rent by 25% after a First Tier Property Tribunal heard that poor standards would lower the market rent.

Propshire Ltd served the Section 13 on tenant Charmaine Powell in September 2024, telling her the rent would go up from £2,000 to £2,500 a month in October.

Powell had lived at the three-bedroom mid-terraced house in Nags Head Road, Enfield, for 14 years.

Poor standards

She told the tribunal that it suffered from mould and water ingress in the bedrooms, tiles had fallen off the kitchen wall, and the central heating system was not working properly.

She supplied the letting details for a similar property in the same road with an asking rent of £2,100 per calendar month.

Propshire Ltd, represented by agent Akiva Grunhut of Greenview Estates, did not accept that the heating system was faulty and said damp and mould was due to the tenant not heating or ventilating the property properly.

He said the similar property had been advertised on an online portal for private landlords which explained the lower rent of £2,100, submitting that private landlords were not aware of current market conditions.

He had recently let a three-bedroom property in the road at £2,500 a month.

However, the tribunal ruled that £2,300 was the rent achievable for Powell’s property if it was let in good condition with all modern amenities. The judge said: “The tribunal does not accept Mr Grunhut’s assertion that the poor condition of the property was entirely due to the tenant’s lifestyle.”

He added that a 10% reduction was justified to reflect the deficiencies, to produce a market rent of £2,070 per calendar month, taking effect from 12th March.

Tribunals are expected to hear many more similar challenges once the Renters’ Reform Bill kicks in and Section 13 becomes the only way landlords can increase rent for existing tenants.

‍