By Sohaib Shams
Rent increases of up to 88% are still being approved by tribunals in England despite the Renters' Rights Act, which aimed to curb unfair rises, according to analysis by the London Renters Union.
Data from May to October shows 80% of tenants who challenged increases through the tribunal process saw their rent go up, by an average of £1,200 a year. In 36% of cases the landlord's proposed increase was approved in full, while 42% saw a reduced increase. Only 16% had increases cancelled and 6% received a rent decrease.
Key changes under the Act
The changes, which took effect in May, mean the tribunal can no longer increase rent higher than the landlord's application, and rent increases can no longer be backdated to before the tribunal decision. The abolition of "no fault" evictions also reduced the risk of landlords retaliating against tenants. The cost of applying is £47.
Tribunal system under strain
Tenants and landlords say the system is "not working for anyone," citing long delays for hearings and inconsistent decisions on "fair market rent." The London Renters Union reported tenants in London being asked to attend hearings in the Midlands due to backlogs, with only about 30 full-time judges nationwide handling cases.
Notable cases
In one case, a tribunal approved an 88% increase on a Dagenham property, raising a housing benefit tenant's rent from £1,200 to £2,250 a month despite arguments of undue hardship. In another, a tenant challenging a £17 monthly increase received a £200 decrease after the tribunal ruled the rent was too high.
Stakeholder views
Jae Vail of the London Renters Union said the system fails to protect tenants from unreasonable increases of 30% or more, and that rapid area-wide rent rises make it hard to prove an increase is out of character. Chris Norris of the National Residential Landlords Association said inaccurate decisions are being made by an overstretched workforce, with judgments relying heavily on Rightmove listings. He also warned that tenants' unions encouraging challenges to all increases could amount to "abuse of the system."
Nye Jones of Generation Rent said the tribunal had worked well since May but further change is needed to reduce the relative cost of rent over time. The Oxford Renters Union has urged members to challenge all increases to freeze rents and lower market rates.
Government response
A Ministry of Housing, Communities and Local Government spokesperson said the Act empowers tenants to challenge above-market increases and pointed to cases where tribunals reduced rents by hundreds of pounds or ruled no increase. The government maintains the changes are working.
