Charity claims tribunal fees risk blocking tenants from challenging rent rises

Tackling unfair rent increases is central to the success of the Renters’ Rights Act, while fees to challenge them risk creating a significant barrier for tenants, a charity has claimed.

Anti-poverty charity Z2K says the act will give tenants the chance to challenge unfair rent increases and gain stronger protections.

However, as previously reported by Property118, tenants challenging rent increases under new reforms could overwhelm the courts.

Challenging rent increases

Under the Renters’ Rights Act, renters will be able to challenge rent increases in a Tribunal, and landlords can only raise the rent once a year through a Section 13 notice.

According to the charity’s data, renters who challenge their rent increases are on average £1,140 per year better off than they would have been had they accepted the landlord’s proposed increase.

More than 71% of applications for market rent determinations brought by renters are successful, resulting in the tribunal setting a lower rent than that proposed by the landlord.

The data also reveals the average level of deduction applied by the tribunal equates to £2,160 a year, with 77% of cases seeing the tribunal apply deductions due to property condition, from the baseline market rent.

The charity says: “For many renters, a reduction of this scale can make the difference between a rent increase being manageable or unaffordable, especially given that private renters on low incomes already spend a disproportionately high share of their income on housing costs.”

Fee will create significant barrier for tenants

As previously reported by Property118, the government announced a £47 fee for tenants challenging a rent increase through the first-tier property tribunal.

However, Z2K claims the fee will cause a “significant barrier for tenants” and cause uncertainty.

The charity says: “For renters facing an imminent increase in housing costs, the requirement to pay an upfront fee introduces a significant barrier to using the process.

Those who qualify for a full fee remission must navigate a separate application process, providing detailed financial information about household income and savings. This additional administrative burden may deter more vulnerable renters or those who are already anxious, stressed, or unfamiliar with legal processes.

“For some, the effort, uncertainty and perceived risk involved may outweigh the benefit of challenging the increase. For those who don’t qualify, it also increases the risk and uncertainty at the point of deciding whether to apply.”

Landlords in limbo

As previously reported by Property118, under the Renters’ Rights Act, any rent increase upheld by the tribunal would take effect only from the date of its decision, rather than when the landlord first served notice.

This means that even unsuccessful challenges could delay higher rent payments for months, leaving landlords in limbo.

Geoffrey Vos, Master of the Rolls and head of civil justice in England and Wales, warned the Housing Law Practitioners’ Association that the rules under the Renters’ Rights Act could create “an incentive for tenants to apply to the First Tier Tribunal in respect of every increase in order to delay its implementation”.