How the First-tier Tribunal Decides What the Market Rent Is

The legal definition of market rent

The tribunal does not decide what rent is fair, reasonable, or affordable. It determines the open market rent — the rent that a willing landlord and a willing tenant would freely agree at arm’s length in the open market at the date of the hearing.

This definition comes from Section 14 of the Housing Act 1988, which sets out how market rent is to be assessed for Section 13 challenges on assured tenancies. Under the Renters’ Rights Act 2025, the same methodology applies to all periodic assured tenancies in England.

The key implication: if the market genuinely supports the landlord’s proposed rent, the tribunal will confirm it — even if the tenant cannot comfortably afford it. The tribunal’s role is not to set an affordable rent, but an accurate one.

The tribunal’s evidence hierarchy

The tribunal weighs different types of rental evidence in a rough hierarchy, from strongest to weakest:

1. Agreed market rents for recently let comparable properties

Actual rents agreed between landlords and tenants on arm’s-length lettings of similar properties nearby. These are the gold standard because they represent genuine market transactions. Letting agents, landlords, or agents’ written confirmation of agreed rents are the most persuasive evidence a party can submit.

2. Previous First-tier Tribunal determinations

Published rent decisions for comparable properties in the same area. These carry significant weight because they represent an independent, judicially assessed view of market rent at a specific point in time. The tribunal will look at both the determined rent and the comparables the earlier panel accepted.

3. Current portal asking rents

Live or recently closed listings on Rightmove, Zoopla, OpenRent, and similar portals. These establish the upper bound of market expectation but are treated with caution because asking prices may not reflect what landlords actually accept.

4. Statistical and index data

ONS private rental market statistics, Valuation Office Agency data, and similar indices may provide market trend context but are rarely determinative on their own. The tribunal prefers specific comparables over broad statistical averages.

How comparables are selected and weighted

A comparable is most persuasive when it is:

• Close in location — same postcode or immediately adjacent streets. The tribunal will discount comparables from significantly different areas, even within the same borough.
• Similar in property type — a two-bedroom flat is not directly comparable to a two-bedroom house. Period conversion flats are treated differently from purpose-built blocks.
• Similar in size — floor area matters. A 60 sqm flat and an 80 sqm flat with the same bedroom count are not equivalent, and the tribunal will expect size adjustments to be explained.
• Recent — rents agreed or determined within the past 12–18 months carry the most weight. Older evidence is discounted proportionally to how much the market may have moved.
• Verified — comparables with documentary support (confirmed letting, agent confirmation, court document) carry more weight than assertions or screenshots.

Adjustments the tribunal applies

Once the tribunal has selected its comparables, it adjusts them for differences between the comparable property and the subject property. Common adjustments include:

Floor area

The most common adjustment. Rents are frequently adjusted on a per-square-metre basis to account for size differences between the comparable and the subject property.

Condition and specification

A recently refurbished comparable will be adjusted downward when compared to an unrenovated property — and vice versa. Modern kitchen, bathrooms, and finish level are all factors.

Floor level and aspect

Higher floors with good views typically command a premium in urban markets. Ground-floor flats may be adjusted downward, top-floor flats with roof terraces upward.

Furnished vs unfurnished

Furnished lettings typically achieve a modest premium over unfurnished equivalents. The tribunal will adjust when one is furnished and the other is not.

Parking and outside space

Off-street parking and private garden or terrace access can attract meaningful premiums in suburban markets. The tribunal will adjust where one property has these features and the comparable does not.

Date of letting or determination

An older comparable rent will be adjusted using an index or the tribunal’s own judgment of local market movement to bring it to a current-equivalent figure.

Factors the tribunal does not consider

The tribunal’s determination is strictly about market rent. The following are explicitly not factors in its decision:

• Tenant affordability — whether the tenant can afford the proposed rent is irrelevant to the tribunal’s assessment of market rent.
• Landlord costs — mortgage payments, service charges, insurance, or maintenance costs do not bear on what the market would pay for the property.
• Rent-to-income ratios — the tribunal does not apply affordability tests or income multiples.
• The history of the tenancy — how long the tenant has been in the property, or whether the landlord has previously been a “good” or “bad” landlord, plays no part in the rent determination.
• The landlord’s motivation — whether the landlord wants to raise rent to fund a renovation or to increase profitability is irrelevant to what the market would pay.

How to influence the tribunal’s assessment

Given the methodology above, parties who prepare strong comparable evidence have the best chance of influencing the outcome. Practically, this means:

• Submit three to five well-matched comparables with clear documentation (letting confirmation, agent letter, or tribunal decision reference)
• Explicitly explain any adjustments you are making for differences in size, condition, or location — don’t leave the tribunal to guess
• Include any relevant published tribunal decisions for similar properties in your area — these are free to access on GOV.UK and carry significant weight
• If your property has features that differ materially from comparable lettings (e.g. poor condition, no outdoor space, ground floor), make these differences explicit and estimate a percentage or pound adjustment

Rent Report’s Rental Assessment and RICS Expert Report services use the same evidence hierarchy as the tribunal — matching listed rents, previous tribunal determinations, and property features to produce a calibrated market rent estimate with explicit adjustments.