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Majority of Tenants Poised to Challenge Rent Hikes Under New Bill

More than half of tenants are prepared to contest rent increases under the forthcoming Renters’ Rights Bill, according to new research from property group Leaders Romans Group (LRG). The finding comes as Parliament continues to debate sweeping reforms to the private rented sector, including the introduction of a tribunal system to review rent hikes deemed excessive.

LRG’s Q1 2025 Lettings Report reveals that 53% of tenants say they would likely challenge a rent increase once the bill becomes law, with 28% describing themselves as “very likely” to take action. However, the report also highlights that 47% of tenants would be unlikely to pursue a challenge — a figure LRG says reflects the fair pricing practices already used by many professional landlords.

The Renters’ Rights Bill, currently progressing through Parliament, aims to enhance tenant protections by giving them the ability to appeal above-market rent rises via an independent tribunal. While the bill has sparked concern in some quarters about a potential rise in disputes, LRG maintains that the trend reflects growing tenant awareness rather than increasing tension.

“These findings are not an indication of rising conflict,” the report states. “Rather, they show that tenants are becoming more informed about their rights and expect transparency — something that responsible landlords are already providing.”

The experience north of the border offers a cautionary tale. In Scotland, the number of rent challenge applications spiked following the introduction of temporary rent caps. Between April 2024 and March 2025, 899 applications were submitted — a dramatic rise from just 106 the year before, according to Generation Rent. Although those controls have now ended, the Scottish Government has announced plans to implement long-term rent regulation by 2027, potentially tying increases to inflation plus 1%.

Across England, pressure on the tribunal system is mounting. The Ministry of Justice reports that rent-related cases nearly doubled between 2019 and 2023, climbing from 483 to 921. Nationwide, a total of 702,000 tribunal cases remained unresolved by the end of 2024, with housing among the fastest-growing categories. Scotland’s Housing and Property Chamber also saw a sharp rise, from 2,760 cases in 2021–22 to 4,271 in 2023–24 — prompting calls for additional resources.

Despite these challenges, the LRG report underscores landlord optimism, particularly among those who adopt a proactive and professional approach. A majority already set rents in line with market values, and 62% of landlords surveyed believe the reforms could lead to a more transparent and manageable system.

Tenants, too, see potential benefits. Three-quarters say that caps on rent increases and the ability to appeal will improve affordability — a significant concern amid continued upward pressure on rents. Across England, average rents rose by 5.5% over the past year, with sharp increases recorded in the North and South West.

Confidence in the new ombudsman remains tentative, however. Just 4% of landlords and 15% of tenants express strong confidence that the dispute resolution process will be fair — a sign, LRG suggests, that robust guidance and consistent rulings will be key to the system’s success.

Allison Thompson, LRG’s National Lettings Managing Director, welcomed the bill but warned of unintended consequences without appropriate safeguards.

“The Renters’ Rights Bill represents a significant change for the private rented sector,” she said. “But it’s important to recognise that not all tenants will challenge rent increases — many trust the process when landlords take a fair, evidence-based approach.”

Thompson added that the lessons from Scotland should serve as a warning: “Without clear and consistent safeguards, we risk seeing backlogs, rising disputes, and reduced supply. We support the House of Lords’ proposed amendment to link rent increases to recognised indices. It would provide much-needed clarity for all parties.”

As the bill moves closer to becoming law, stakeholders across the rental market will be watching closely — not just to see how tenants respond, but whether the system can handle the surge in activity expected to follow.

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