New rent dispute system will be more proportionate claims government

The government claims the new way to challenge rent increases will be “quicker and more proportionate”.

The government has announced that HMRC’s Valuation Office will be responsible for making initial rent determinations when tenants challenge rent increases, replacing the First-tier Tribunal as the first stage of the process.

However, it is not yet clear when the new scheme is expected to begin.

Quicker and more proportionate route

In a written parliamentary question, Independent MP James McMurdock asked: “What assessment has the government made of the potential impact of the new rent determination service on landlords’ ability to increase rents to reflect changes in costs?”

In response, Labour MP James Murray said: “The role of the new rent determination function will be to determine the current market rent.

“It provides a quicker and more proportionate route for resolving disputes and does not change a landlord’s ability to propose rents that reflect market conditions.”

Give landlords and tenants confidence

As previously reported by Property118, the government claim allowing HMRC Valuation Office to rule on rent disputes will give tenants and landlords confidence.

Housing Minister Matthew Pennycook explains: “By transferring responsibility for making initial rent determinations to HMRC’s Valuation Office, we will ensure that challenges to proposed rent increases are determined faster and pressure on the tribunal system is reduced, giving tenants and landlords confidence that rent disputes will continue to be resolved efficiently and effectively.”

Minister for courts and legal services, Sarah Sackman, said: “I am on a mission to continue to modernise our courts and tribunals, from digital improvements to better efficiency, so those using the system can get justice sooner.”

“This change is another step in that plan. By ensuring rental disputes can be resolved through a new dedicated service, this will provide quicker decisions for renters and landlords while relieving future pressure on tribunals.”

For the moment, the government say renters who want to challenge a rent increase must still apply to the First-tier Tribunal.

According to the National Residential Landlords Association (NRLA), the scheme is expected to take two years to be introduced, although it is not yet clear when this process will begin.