Minister denies rent controls are back as Tribunals slash landlords’ rents

A government minister has rejected claims that rent controls are being introduced in England through the back door via rent tribunals.

Posting on social media, housing minister Matthew Pennycook dismissed suggestions that rent controls had returned, describing them as “nonsense”.

His comments come after a recent rent tribunal case in Manchester saw a landlord who had proposed a £50 monthly rent increase instead have their existing rent cut by £200 by the First-tier Tribunal, following a challenge by the tenant.

No rent control in England

The Manchester flat had two bathrooms and a balcony, and was described by the tribunal as attractive accommodation.

However, it found that the market evidence did not support the rent being charged.

The landlord had sought to increase the monthly rent from £1,650 to £1,700, but after the tenant challenged the proposed increase, the tribunal instead set the rent at £1,450.

As a result, the landlord will now receive £2,400 less a year than previously, rather than the additional £600 they had hoped to secure.

Mr Pennycook argued that the ability for tenants to challenge rent increases at tribunal is nothing new.

Mr Pennycook said on X: “I see the nonsense “rent controls are back” takes keep coming. There is no rent control in England.

“The legal right to challenge rent increases at tribunal was introduced by the Thatcher Government in its 1988 Housing Act.

“It was rarely used in practice only because it inevitably resulted in a landlord serving a Section 21 notice.

“Labour’s Renters’ Rights Act abolished Section 21 ‘no fault’ evictions and renters are now rightly empowered to challenge unfair or above-market rent increases.

“In both the recent cases that have been the cause of so much debate, the tribunal has been operating exactly as it should, determining that the landlords in question were charging rents that simply did not reflect local market values for comparable properties.”

Criticism from landlords

However,  social media users disputed Mr Pennycook’s claims, arguing that the tribunal system amounts to a form of rent control, particularly now that tenants can challenge increases without the threat of a Section 21 eviction.

One commenter on X said: “If it is now easier or made more likely that tenants can challenge rent increases via tribunal, and that a judge can actually reduce the original rent agreed via a binding contract between both parties at the start of the tenancy. That is rent control.”

Another landlord warned that the changes could push more landlords out of the rental market, commenting: “70% of cases find in favour of the tenant! Looks like rent controls. I may not be able to serve a Section 21, but if a tenant of mine takes me to tribunal over what I consider to be a reasonable rent increase, i.e. one that covers the extra costs government has imposed, I will evict and sell.”

The government has previously said they have no plans to introduce rent controls in England.