Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 23
23
Acknowledged
Paragraph: 126
When a tenant objects to an in-tenancy rent increase, they can refer their case to...
Conclusion
When a tenant objects to an in-tenancy rent increase, they can refer their case to the First-tier Property Tribunal, which determines the market rent for the property. The Government says it will remove the tribunal’s power to increase rents and thereby give tenants greater confidence to challenge unjustified increases. If this proposal has the desired effect, it ought to result in a heavier workload for the tribunal, yet the process is time-consuming and resource-intensive, as it relies on each individual property being physically inspected and on both parties presenting evidence of local market rents based on online listings. This is inefficient and results in uncertainty for both landlords and tenants around what a justified increase would be.
Government Response Summary
The government states rents should be agreed between landlords and tenants, and it is not for government to intervene. The First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support all parties in engaging with the Tribunal.
Paragraph Reference:
126
Government Response
Acknowledged
HM Government
Acknowledged
Rents in the private rented sector should be agreed between landlords and tenants, and it is not for government to intervene in this. We are clear that landlords must be able to raise rents in line with market prices, but that rent increases which are significantly above this should not be used as a means of backdoor eviction. Where there are disputes between a landlord and tenant, the First-Tier Tribunal is best placed to resolve these and to determine the market rent. Making a balanced judgement on what the market rent is means a number of different factors need to be taken into account, such as quality of fixings or proximity to amenities. The Tribunal has experts who can assess the true market value of a property, and it is for those individuals to determine which evidence is relevant. We will update guidance to support all parties in engaging with the Tribunal.