Rent Review Risk – Landlords beware

The First-tier Tribunal Property Chamber (Residential Property) (“FTT”) has issued one of the earliest and most significant decisions to date under the new Renters’ Rights Act 2025 (“RRA 2025”).

In Tribecca Square (Mawes House) 175 Co. Limited v Davide Martinelli, the FFT was asked to determine the market rent of a residential property following a tenant’s challenge to a proposed rent increase made under sections 13 and 14 of the Housing Act 1988 (“HA 1988”), as amended by the RRA 2025.

Background

The landlord served a notice proposing an increase in rent from £2,560 per month to £2,577.92 per month. The tenant did not agree to the proposed increase and exercised their right to refer the matter to the FTT for determination.

Following its assessment, the FTT concluded that the appropriate market rent was £2,350 per month. Not only was this significantly lower than the landlord’s proposed figure, but it was also below the rent the tenant was already paying.

The Importance of Evidence

One of the most interesting aspects of the decision was the apparent absence of supporting evidence from the landlord. According to the FTT’s findings, no evidence was provided to justify the proposed increase.

As a result, the FTT relied only on the evidence submitted by the tenant, when assessing the property’s market rent.

Lessons for Landlords

The case highlights the importance of careful preparation before seeking a rent increase under the new regime. Landlords should ensure that any proposed increase is supported by robust evidence, including:

1. Comparable local rental properties;
2. Recent letting data for similar accommodation;
3. Evidence of improvements or upgrades to the property (if applicable); and
4. Any other factors that support the proposed market rent.

Absent such evidence, landlords run the risk of the FTT determining a lower market rent than anticipated, potentially resulting in a reduction rather than an increase in rental income.

Conclusion

The decision in Tribecca Square (Mawes House) 175 Co. Limited v Davide Martinelli serves as a warning for landlords navigating tenancies post-RRA 2025. While the new framework was expected to give tenants greater scope to challenge rent increases, this case demonstrates the practical consequences of those reforms and the importance of presenting compelling evidence before the FTT.

For landlords, the message is clear: a proposed rent increase should never be viewed as a formality. In a contested case, evidence will be critical, and failing to provide it may ultimately result in a rent determination that is less favourable than the current rent.

Key Takeaway

The new rent review regime does not guarantee that rents will move in only one direction. Where a matter is referred to the FTT, the FTT’s role is to determine the market rent objectively. Landlords who cannot substantiate their proposed increase with appropriate market evidence may find themselves facing an unexpected reduction in rent instead.