What Is Market Rent?

The definition

Market rent is the rent a property could reasonably be expected to achieve if it were let today on the open market — to a new, willing tenant — on the same terms as the existing tenancy. It reflects what a landlord could actually get, not what they would like to charge.

Crucially, market rent is property-specific. It is not the same as:

• The average rent in the area
• The current rent plus inflation (CPI or otherwise)
• The rent a neighbour pays for a different property
• The figure a property portal algorithm suggests
• What a landlord needs to cover their mortgage or costs

The test is always: what would a well-informed landlord and a well-informed tenant agree as the rent for this specific property, at this specific time?

What are comparables?

Comparables (sometimes called "comps") are similar properties that have recently been let, or are currently advertised for let, at known rents. They are the primary evidence used to determine market rent — both for landlords proposing an increase and for tenants or tribunals assessing whether a proposed rent is fair.

A good comparable is a property that is similar to the subject property in the factors that affect rent:

• Size — number of bedrooms, floor area in square metres
• Type — flat, terraced house, detached house, etc.
• Location — same street, same neighbourhood, or a comparable nearby area
• Condition and specification — recently refurbished vs. dated, quality of fittings
• Included features — furnished/unfurnished, parking, garden, outdoor space
• Date — how recently the rent was agreed (older data carries less weight)

No two properties are identical, so comparables are always adjusted for the differences between them and the subject property. A property with a private garden will typically command a premium over an otherwise identical property without one; an upper-floor flat with a lift may be priced differently from a ground-floor flat.

Asking rents vs. agreed rents

There is an important distinction between asking rents (the figure advertised on Rightmove, Zoopla, etc.) and agreed rents (what a landlord and tenant actually agreed). In active markets, asking rents and agreed rents are often similar, but they are not always the same — some properties let above their asking price in very high-demand areas, and some let below after negotiation.

The tribunal generally gives more weight to evidence of agreed rents — particularly letting agent records, tenancy agreements, or comparable reports compiled from verified data — than to portal asking prices alone. However, asking prices from reputable portals for current listings are still useful evidence, especially where agreed rent data is limited.

How the First-tier Tribunal uses comparables

When a tenant refers a Section 13 notice to the First-tier Tribunal, the tribunal's task is to determine the market rent for the property — the rent a willing landlord and willing tenant would agree on the open market today, on the same terms.

The tribunal considers all the comparable evidence submitted by both sides. It will assess:

• How similar each comparable is to the subject property
• How recent the comparable rents are
• Whether any adjustments are needed to make the comparison fair
• The weight to give to asking prices vs. agreed rents
• Whether there are enough comparables to draw a reliable conclusion

The tribunal then sets a figure it considers to be the market rent, subject to one key constraint: it cannot set a rent higher than the figure the landlord proposed in the Section 13 notice.

Why strong evidence matters

The outcome of a tribunal case often hinges on the quality and quantity of comparable evidence. A landlord who can point to multiple recent lettings of similar properties at or above the proposed rent is in a strong position. A tenant who can demonstrate that comparable properties are letting significantly below the proposed figure is equally well-placed to challenge it.

Broad averages and area-level data rarely carry the same weight as specific, property-level comparables. The more closely a comparable matches the subject property — in size, type, location, condition and date — the more persuasive it is.

Presenting evidence clearly and professionally also matters. A well-structured comparable analysis report, with clear adjustments and transparent methodology, is easier for a tribunal to evaluate than a collection of portal screenshots.

What Rent Report provides

Rent Report generates property-specific market rent estimates based on current comparable listings data. The Rental Assessment and Tribunal Evidence Pack products both include comparable analysis tailored to the property in question — with adjustments for the factors that affect rent — rather than broad area averages.

For a full explanation of our data sources, comparable selection methodology, and confidence scoring, see how Rent Report works →