How to Determine Market Rent for a Section 13 Increase in England

Market Rent Is Not What You Hope to Charge

When you propose a new rent on Form 4A, the figure should reflect the open market rental value of your property. There is no statutory cap on the increase amount — England has no percentage limit or rent control zones for private tenancies — but the tenant can challenge any figure they consider above market by applying to the First-tier Tribunal.

If the tribunal gets involved, it determines the rent at which the property might reasonably be expected to let on the open market under an assured periodic tenancy. Your proposed figure is the ceiling — the tribunal cannot set a higher rent — but it can reduce it. Getting the figure right from the start avoids this outcome entirely.

Agreed Rents vs. Asking Prices

The First-tier Tribunal has made clear — notably in the Skylark Point decision — that agreed rents carry significantly more weight than advertised asking prices. An asking price on Rightmove or Zoopla tells you what a landlord hoped to achieve. An agreed rent tells you what a tenant actually committed to pay.

This distinction matters because asking prices are often aspirational. A two-bedroom flat listed at £1,400/month may have let for £1,300 after a week of no enquiries, or £1,350 with a longer void period factored in. If your proposed rent is based on listing prices alone, the tribunal may adjust it downward to reflect actual transaction evidence.

How to Gather Comparable Evidence

Start with properties that match yours as closely as possible:

Location. Within roughly half a mile of your property, or within the same neighbourhood. Rents can vary street by street in urban areas, so closer is better.

Property type and size. Same number of bedrooms, similar floor area, comparable layout. A two-bedroom purpose-built flat is not a valid comparable for a two-bedroom Victorian conversion with a private garden.

Condition. A recently refurbished property with a new kitchen and double glazing will command a higher rent than an identical property with dated fittings. The tribunal values the property in its current condition — your improvements count, but so does any outstanding disrepair.

Tenancy start date. Recent lettings (within the last 6 to 12 months) are more relevant than transactions from two years ago. The rental market moves, and the tribunal wants to see what the market looks like now.

Sources for agreed rent data:

• Local letting agents. Call two or three agents who operate in your area and ask what comparable properties have let for recently. Many will give you figures informally, especially if you are a potential future client.
• Tenancy deposit scheme data. The three authorised schemes hold records of actual rent amounts tied to deposit registrations.
• Rightmove/Zoopla "let agreed" listings. Filter for properties marked as let (not available) to see what was listed — the agreed figure may be lower, but the listing price is a starting point.
• Your own records. If you manage multiple properties in the same area, your own agreed rents are evidence.

What the Tribunal Disregards

Two statutory disregards under Section 14 of the Housing Act 1988 affect the tribunal's valuation:

Tenant improvements. If the tenant installed a new bathroom or laid a garden at their own expense (not under a tenancy obligation), the increased rental value from those improvements is disregarded. You cannot claim a higher rent because of work the tenant paid for.

Tenant disrepair. If the tenant has damaged the property or failed to maintain it as required by the tenancy agreement, the reduced rental value from that disrepair is disregarded. The tribunal values the property as if it were in the condition required by the terms.

Setting a Defensible Figure

A proposed rent that is supported by three or four comparable agreed lettings in the immediate area is difficult for a tribunal to challenge. A proposed rent that is based on a hunch, a yield target, or the most expensive listing on a property portal is easy to knock down.

If the comparable evidence suggests your property's market rent is £1,100/month and your current rent is £950, a proposal of £1,100 is defensible. A proposal of £1,250 — based on a newly refurbished penthouse two streets away — is not.

Gather the evidence before you complete Form 4A. If a tenant does refer the increase, your evidence pack is already assembled. If they accept without a challenge, you know the figure was fair.

Assemble Your Evidence Properly

Our Section 13 rent increase guide for landlords in England includes a market evidence collection grid — a structured format for recording comparable properties, agreed rents, property details, and tenancy dates — so your evidence is organised and tribunal-ready from day one.

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