The rent tribunal system is ânot working for anyoneâ, tenants and landlords have said, as rent increases of up to 88% continue to be approved despite Labourâs pledge to curb unfair rises.Tenants are challenging rent increases in record numbers since the Rentersâ Reform Act came into effect in May, making the process easier and less risky for renters.But tenants and landlords have said people are facing increasingly long delays for hearings, and thereâs a lack of consistency in how âfair market rentâ is being decided.Analysis of data from May to October by London Renters Union (LRU) showed 80% of tenants who went through the tribunal process saw their rent go up, by an average of ÂŁ1,200 a year, although in most cases it was less than the landlordâs proposed increase.In 36% of cases, the landlordâs proposed increase was approved in full, and in 42% of cases the rent increase was reduced.In 16% of cases the rent increase was cancelled, and in 6% rent was lowered.In one case, a rent tribunal approved an 88% rent increase on a property in Dagenham. The tenant, who paid rent via housing benefit, argued the increase would lead to undue hardship but still saw his monthly rent go up from ÂŁ1,200 to ÂŁ2,250.In another case, a tenant who challenged a ÂŁ17 a month rent increase, received a ÂŁ200 rent decrease after the tribunal ruled the rent was actually too high.Tenant unions have expressed concern over rent increases of 30% or more being regularly approved.Jae Vail from LRU said: âThe system is just clearly not doing what Labour said it would do in their manifesto, which was helping people challenge unreasonable rent increases.
What could be a better definition of an unreasonable rent increase than 40% or 80%?âAnd in places where rents in an entire area are rising really rapidly, this doesnât protect you because itâs quite hard to evidence this is actually out of character.âHe added that renters were starting to face long delays to have their cases heard, and tenants in London have been asked to attend hearings in the Midlands due to backlogs.The reforms, which took effect in May, mean the tribunal can no longer increase rent higher than the landlordâs application, and rent increases can no longer be backdated to before the tribunal decision. The abolition of âno faultâ evictions also reduced the risk of landlords retaliating against tenants.
The cost of applying is ÂŁ47.Chris Norris, chief policy officer at the National Residential Landlords Association, said the system âwasnât working for anyoneâ and there were concerns inaccurate decisions were being made by an overstretched workforce.âItâs very difficult for landlords to trust and have faith in the system,â he said. âThere hasnât been any more capacity or resource put into the tribunal system by the government to make sure this works, and only just over 30 [full-time] judges across the country are working on this.ââWeâve seen judgments based pretty much exclusively on a trawl of RightMove or similar sites which is not that helpful.âHe also said there were concerns tenants unions were encouraging members to challenge all rent increases, which he described as an âabuse of the systemâ.Oxford Renters Union has asked its members to pledge to say no to rent increases by taking them to tribunal, with the goal of âfreezing rents and lowering the market rate for all Oxford rentersâ.âWe need to make sure bad landlords donât try to replicate no-fault evictions by using rent increases. Itâs absolutely essential,â Norris said. âBut unfortunately, it stops serving that purpose if you deliberately try to gum up the system.âBut renters unions pushed back on this, saying there was no evidence to suggest renters were âflooding the systemâ.Nye Jones from Generation Rent said the tribunal system had been working well since the May reforms but further change was needed.âIt is based on whatâs deemed a fair market rent in the current market.
But we know that in many places, renters are already paying way, way more than they can afford on rent. We need to look at how we can reduce the relative cost of rent over time,â he said.Renters groups are calling on the government to set controls on rent increases across the country to make renting more affordable while housing stock steadily increases.âWhat weâre seeing right now is a really inefficient case-by-case form of rent control.
So why not have the version that would actually protect everyone?â Vail said.A spokesperson for the Ministry of Housing, Communities and Local Government said: âOur Rentersâ Rights Act empowers tenants to challenge above-market rent increases through the tribunal â stopping private landlords from using increases as a backdoor means of eviction.âWeâre already seeing evidence that our changes are working â with cases across the country where tribunals have reduced above-market rents by hundreds of pounds a month or ruled there should be no increase.â

