Rent rises of up to 88% still approved in England despite renters' reform
Since the Renters' Reform Act took effect in May, tenants in England have been challenging rent increases in record numbers, yet rises of up to 88% are still being approved. Both tenant and landlord groups say the tribunal system is not working properly.
Rent tribunals in England continue to approve very large rent increases, even though the Labour government pledged to curb unfair rises and the Renters' Reform Act has been in force since May. Tenant and landlord representatives alike say the system is “not working for anyone”. The issue matters because the reform was meant to protect renters from unjustified rent hikes.
Since the law took effect, tenants have been challenging increases in record numbers, as the process has become easier and less risky. The tribunal can no longer set rent higher than the landlord requested, and increases cannot be backdated to before its decision. The ban on “no fault” evictions has also reduced the risk of landlord retaliation. Applying costs £47.
What the data shows
An analysis by London Renters Union, a tenants' organisation, covering May to October found that 80% of tenants who went through the tribunal saw their rent rise, by an average of £1,200 a year, though in most cases by less than the landlord proposed. In 36% of cases the landlord's increase was approved in full, in 42% it was reduced, in 16% it was cancelled and in 6% the rent was lowered.
In one Dagenham case, a tribunal approved an 88% increase. The tenant, who pays rent with housing benefit, saw his monthly rent go from £1,200 to £2,250. In another case, a tenant who challenged a £17 monthly increase received a £200 reduction after the tribunal found the rent was too high.
Delays and criticism
Jae Vail of London Renters Union said the system is not delivering what Labour promised, particularly in areas where rents are rising rapidly. He noted long delays, with London tenants asked to attend hearings in the Midlands.
Chris Norris, chief policy officer at the National Residential Landlords Association, said only just over 30 full-time judges are working on these cases and some judgments rely almost entirely on listing websites. He also criticised tenant unions for urging members to challenge all increases. Renters' groups say there is no evidence of the system being flooded. Nye Jones of Generation Rent said the tribunals have worked well since the reforms but further change is needed.
Renters' groups are calling for nationwide rent controls. The Ministry of Housing, Communities and Local Government said the changes are working, citing cases where tribunals cut above-market rents by hundreds of pounds a month.
