Justice Impact Test

Rent rise appeals will overwhelm tribunals under Renters’ Rights Act, warns top judge

Critics say free challenges and delayed rent uplifts will encourage speculative claims and lead to huge backlogs at First-tier Tribunals.

Reforms designed to protect private renters from excessive rent rises could overwhelm England’s housing tribunal system with tenants routinely challenging increases, senior judges, lawyers and landlord groups have warned.

The Renters’ Rights Act, due to come into force on May 1, will overhaul section 13 of the Housing Act 1988, the mechanism used to raise rents. Under the new regime, tenants will be able to challenge any proposed increase at the First-tier Tribunal at no cost.

Crucially, the tribunal will not be able to set a higher rent than the landlord proposed, even if it concludes the market rent is higher. Critics argue that this therefore removes the downside of appealing, encouraging tenants to challenge rises if only to delay paying more.

“An incentive for tenants to apply to the tribunal in respect of every increase to delay its implementation”.

In a speech to the Housing Law Practitioners’ Association, Geoffrey Vos, Master of the Rolls (pictured), said the reforms could create “an incentive for tenants to apply to the tribunal in respect of every increase to delay its implementation”.

In addition, any increase that is upheld will only take effect from the date of the tribunal’s decision, potentially postponing higher payments for months.

“The tribunal is unlikely to cope with such an influx of cases once the act comes into force.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, told the Times: “With just 34 judges sitting on it, the tribunal is unlikely to cope with such an influx of cases once the act comes into force.”

He adds: “It is one of many aspects of the act where warm words are not being matched by any evidence of the detailed work needed to ensure it works in practice.”

Ministers have powers to allow rent increases to be backdated if the tribunal is judged to be “overwhelmed”, while the Government says work is underway to increase capacity.

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