Recent research conducted by the i newspaper has shed light on a concerning trend where tenants challenging rent increases at property tribunals end up facing even larger hikes than initially proposed by their landlords. The study, which analyzed 30 property tribunal hearings over the past three months, discovered that in over a quarter of the cases (eight instances), renters were slapped with significantly higher rent increases than those originally suggested by their landlords.
The investigation unveiled a diverse range of outcomes from these hearings. In 10 cases, the tribunal upheld the current rent, while in 11 other instances, a raise in rent was deemed acceptable but not to the extent requested by the landlord. Perhaps most surprising was the fact that in one case, the tribunal actually decreed a rent reduction, settling on an amount below the property’s original monthly rent.
The study highlighted specific instances of these rent increase disputes, further emphasizing the complexities faced by tenants. For example, in Surrey, a landlord aimed to raise the rent from £1,260 to £1,300 per month. However, the tribunal, upon considering evidence of the property’s dated condition, found that an even higher rent of £2,200 per month was reasonable, eventually settling on a final figure of £1,540.
Similarly, in south-east London, another landlord sought to increase the weekly rent from £86 to nearly £93 (equivalent to about £375 to £402 per month). Nevertheless, the tribunal acknowledged issues with damp in the property and lowered the rent recommendation substantially to £800 per month (equivalent to around £185 per week).
Responding to the concerning findings, a spokesperson from the Department for Levelling Up, Housing, and Communities asserted that they have taken note of the raised concerns. The spokesperson emphasized the importance of granting property tribunals the freedom to make comprehensive and just decisions while determining market rent rates, rather than being restricted in their judgments. This approach, according to the department, will lead to fairer outcomes for tenants facing such challenges in the rental market.
As the rental market landscape continues to evolve, this research underlines the significance of providing tenants with a robust system to contest rent increases, ensuring that they are not burdened with excessive financial strains in their pursuit of safe and suitable accommodation. With calls for tenant rights and protections gaining momentum, the hope is that a more balanced and equitable rental market will emerge, benefiting both landlords and tenants alike.