Bryan Rylands v Ian Hopkins & Anor

When determining market rent, a tribunal must take into account material evidence relevant to the property’s condition and explain how that evidence affects the determination. An electrical hazard is not necessarily covered by a general finding of disrepair. Failure to address such evidence, or to explain its treatment, is an error of law. On appeal, the Upper Tribunal may set aside the determination and remit the matter where factual findings remain necessary.

The tenant appealed against the First-tier Tribunal’s determination of the market rent for his flat under sections 13 and 14 of the Housing Act 1988. The First-tier Tribunal assessed the rent at £1,050 per month after making deductions for missing white goods, a dated bathroom and general disrepair.

The tenant had provided evidence that the electrical installations were dangerous. The First-tier Tribunal did not mention that evidence or explain whether it had been taken into account. The central issue was whether that omission amounted to an error of law.

1. The appeal was allowed and the First-tier Tribunal’s decision was set aside.
2. The First-tier Tribunal had received evidence concerning a potentially dangerous condition of the electrical installations. It neither took that matter into account in determining the market rent nor explained what it made of it. That was an error of law.
3. The electrical hazard could not plausibly be treated as covered by the Tribunal’s reference to general disrepair, because that description was not apt to identify an electrical danger.
4. The Upper Tribunal could not make the necessary findings of fact on the appeal. The matter was therefore remitted to the First-tier Tribunal for a fresh determination.
5. The First-tier Tribunal was directed to determine the state of the electrical installations before the start date for the new rent and then consider what effect, if any, that condition had on the market rent at that date.

• Upper Tribunal (Lands Chamber): appeal allowed; the First-tier Tribunal’s determination was set aside and the matter remitted for a fresh determination.
• First-tier Tribunal (Property Chamber): determined the market rent at £1,050 per month under reference CHI/29UL/MNR/2024/0066.