The simple definition
Open-market rent is the rent a willing tenant and a willing landlord would agree on the open market for a similar property in the same area, on the same terms.
It's the legal standard the First-tier Tribunal uses when a Section 13 rent increase notice is challenged.
What “similar property” usually means
- Same general area or postcode.
- Same number of bedrooms.
- Same property type (flat, house, studio, room).
- Comparable size and layout.
- Comparable furnishing arrangement.
- Comparable condition.
How the tribunal arrives at a figure
The tribunal members typically have surveying experience. They will:
- Look at evidence of recent comparable lettings in the area.
- Adjust for differences (size, condition, services, furniture).
- Land on a figure that reflects the open-market rate.
RRA 2024: the tribunal cannot exceed the proposed rent
This is the most important change for tenants since the Renters' Rights Act 2024 came into force. Previously, a tribunal could substitute a higher figure than the landlord proposed — which meant challenging a rent increase carried real downside risk. Many tenants were advised against it for that reason.
Under the RRA 2024, the tribunal can now only:
- Confirm the proposed rent, or
- Set a lower rent based on the evidence.
In addition, the new rent is no longer backdated, and the tribunal can defer the start of the new rent by up to 2 months if paying it immediately would cause undue hardship. Together, these changes have materially shifted the risk/reward of bringing a tribunal challenge.
Evidence that helps
- Recent online listings for similar local properties.
- Letting agent valuations or market reports for the area.
- Photographs and dated notes of any disrepair or sub-standard fittings.
- Council tax band and any bills included or excluded.
How RentCharter helps
Our market rent checker compares your figures to the lower quartile, median and upper quartile of typical local rents. That gives you a quick read on where your proposed rent sits in the range — and the evidence pack assembles the supporting material in a printable format.
Frequently asked questions
Is open-market rent the same as average rent?
Not exactly. Open-market rent is what a willing tenant and willing landlord would agree for a similar property in the same area. It's usually expressed as a single figure, but the tribunal arrives at it by looking at a range of comparable rents.
Does the condition of the property affect the open-market rent?
Yes. A property in poor condition is worth less to a willing tenant. The tribunal can adjust downward to reflect disrepair, missing services or unusually old fittings.
What about utility bills or service charges?
If the rent normally includes a service that yours doesn't (or vice versa), the tribunal will adjust to compare like with like.
Can the tribunal end up with a higher rent than the landlord proposed?
No. Under the Renters' Rights Act 2024 the tribunal can only confirm the proposed rent or set a lower figure. It cannot exceed what the landlord asked for. This is a major reform from the pre-2024 regime, where a higher determination was possible.