Rent rises of up to 88% still passing in England despite Renters’ Rights Act
Exclusive: While tenants are challenging increases in record numbers, renters and landlords say system is ‘not working for anyone’ The rent tribunal system is “not working for anyo
By The Guardian
Rent rises of up to 88% have been approved in England despite changes intended to give tenants greater protection under the Renters’ Rights Act.
The rent tribunal system is “not working for anyone”, tenants and landlords told the Guardian, as increasing numbers of renters challenge proposed rises.
Analysis by the London Renters Union found that 80% of tenants who used the tribunal process between May and October ended up paying more rent. Their payments increased by an average of £1,200 a year.
In one case, a tribunal approved an 88% increase for a tenant in Dagenham. The tenant, who paid rent through housing benefit, argued that the rise would cause financial hardship.
The monthly rent nevertheless increased from £1,200 to £2,250.
The figures follow the introduction of the Renters’ Rights Act in May, which made it easier and less risky for tenants to challenge proposed increases.
Separate analysis of First-tier Tribunal decisions found that landlords typically requested rises of about 14%, while the median increase allowed was 7.7%. Tribunals set rents below the amount requested in around 70% of cases.
Only about a quarter of proposed increases were approved in full, while some tenants had their rent kept at the existing level or reduced.
Under the new rules, landlords in England can generally increase rent once a year using a Section 13 notice. Tenants can challenge a rise if they believe it is above the open-market rent for the property.
The tribunal cannot set a rent higher than the amount requested by the landlord, and the new rent takes effect from the date of the decision rather than being backdated.
Tenants can challenge a proposed increase for a £47 fee, with their existing rent frozen while the tribunal considers the case.