Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 25
25
Rejected
Paragraph: 128
The Government should assess whether the data held by the VOA could be used to...
Recommendation
The Government should assess whether the data held by the VOA could be used to determine justified rent increases in the PRS. If it concludes that it could, we recommend either that this information be made public so that landlords and tenants can easily see what a justified rent increase would be or, if it cannot be, that the VOA be given initial responsibility for determining whether an increase is justified, with the tribunal serving as an appeals court. If the Government determines that the data is not suitable for this purpose, it should consider ways of collecting it. One way might be for it to require landlords to declare rent levels through the property portal. Whatever the Government chooses to do, it should explore alternative mechanisms to those currently used for establishing justified rent increases with a view to removing some of the burden from landlords and tenants themselves.
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:
128
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.