Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 24
24
Rejected
Paragraph: 127
Tenants and landlords need access to reliable data on local market rents in comparable properties.
Conclusion
Tenants and landlords need access to reliable data on local market rents in comparable properties. The closest available data appears to be that held by the Valuation Office Agency (VOA), which is used to determined local housing allowance rates for broad market rental areas. If sufficiently accurate and granular, this data could form the basis of a much more efficient system for ensuring justified rent increases. Either the data could be made publicly available or the VOA could be given initial responsibility for determining whether a rent increase is justified. Its decision could then be appealed to the tribunal.
Government Response Summary
The government rejects intervening in rent setting and states the First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support engagement with the Tribunal.
Paragraph Reference:
127
Government Response
Rejected
HM Government
Rejected
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.