Rent tribunals cut 73% of landlord increases

Nearly three-quarters of challenged rent increases were set below the landlord’s proposed figure in a sample of tribunal decisions.

LonRes examined 200 market rent determinations, including 169 with published reasons and 108 that stated both the proposed and final rent.

Among those 108 cases, 73% ended with a lower figure, with a median reduction of 7.5% among those cut.

A further 18% confirmed the proposed rent, while 9% were set above it under rules that no longer apply.

Comparable evidence matters

The report said: “With evidence of achieved rents for genuinely comparable properties: what similar homes in the same market actually let for, when, and in what condition, with adjustments explained.

“Tribunals give little weight to asking prices.”

It added: “A landlord who arrives at the tribunal with weak evidence now runs a one-way risk: the rent can only be confirmed or reduced.

“The party that does bring credible market evidence is the only one still influencing the outcome.”

Evidence gaps exposed

Of the 169 decisions with published reasons, 47% disclosed missing or limited evidence, a party submitting nothing or the tribunal relying on its own market knowledge.

Panels drew on their knowledge and experience of the local market in 39% of those cases.

At least one party supplied no evidence or representations in 21%, while 13% contained phrases such as ‘no comparable evidence’, ‘limited market evidence’ or ‘insufficient evidence’.

In one North West case where neither party submitted evidence, the tribunal reduced a proposed £1,100 monthly rent to £900.

Landlords face delays

Since 1 May, landlords seeking to increase the rent on a periodic tenancy must use a Section 13 notice, giving at least two months’ notice and proposing no more than the open market rent.

A tenant can challenge the notice at the First-tier Tribunal for a £47 fee, while the resulting rent cannot exceed the landlord’s figure or be backdated.

The median wait between an application and decision was 96 days, rising to 142 days among the London cases examined.

A £200 monthly increase delayed for five months would leave the landlord unable to recover £1,000, while a quarter of sampled cases took more than 24 weeks.