Government admits no data exists on rent rise cases

The Ministry of Justice (MoJ) has confessed it doesn’t have any records on the volume and nature of rent rise disputes adjudicated by the First-tier Tribunal (Property Chamber).

That lack of information leaves a gaping hole in preparations for the upcoming Renters’ Rights Bill, one firm says.

The MoJ admission came in response to a Freedom of Information (FOI) enquiry lodged by proptech firm Reapit seeking clarity on tribunal workloads as the Bill nears its committee stage in the House of Lords.

Overhaul tenancy agreements

The Renters’ Rights Bill aims to overhaul tenancy agreements in England, mandating that all yearly rent rises be issued via a Section 13 notice.

It will also scrap fixed term assured tenancies in favour of periodic contracts.

Reapit’s FOI sought details on how many rent disputes the tribunal had settled in the past year, the number of property inspections conducted, and the decisions reached.

However, the MoJ dismissed the request, stating it ‘does not hold any information in the scope’ and sees ‘no legal or business requirement’ to monitor such data.

Market rent cases

Reapit’s commercial director, Neil Cobbold, said: “It is worrying that the Ministry of Justice has not been keeping track of the number of market rent cases to assess demand before the Renters’ Rights Bill becomes law.

“And it is most concerning that it feels there is no business requirement to do so since the Bill has the potential to significantly increase the demand for First-tier Tribunal hearings.”

The firm highlights that Scotland’s 2019 shift to open-ended tenancies offers a cautionary tale.

Research from the Nationwide Foundation and Indigo House reveals that tenants facing annual rent rises jumped from 23% in 2019 to 28% by 2024, hinting at unintended consequences.

With England boasting 4.7 million private renters, according to the Office for National Statistics (ONS), a parallel surge could swamp tribunals with as many as 1.3 million cases annually.

Incentive to challenge a rent rise

Mr Cobbold said: “Under the Renters’ Rights Bill, there is every incentive for tenants to challenge an increase.

“The rent increase can either be discounted if ruled above market rates or delayed until there is a ruling from the tribunal.

“This could leave landlords, tenants and agents in limbo and England’s tribunal system log-jammed with pending cases.”

He added: “That is why we’ve written to peers suggesting an amendment to the Bill – tenants should not be able to challenge rent increases at tribunal if the increase matches the rent increases published by the ONS or is no higher than CPI inflation +2%.

“This would help manage demand for tribunal hearings, reduce the number of cases that have no merit and provide certainty for tenants, landlords and agents.”

Boost tribunal capacity

Reapit says that without action to curb demand or boost tribunal capacity, case delays could ripple beyond rent disputes.

It could stall resolutions for leasehold issues, park homes, HMOs, land registry updates, agricultural drainage and Building Safety Act applications.

Such bottlenecks might hinder housing projects and property transactions nationwide.

Mr Cobbold said: “Section 13 rent increases notices will be a new process for many landlords and therefore represents a significant opportunity for agents to demonstrate their market knowledge in advising landlords on what a fair market rate for their property is.

“Avoiding a tribunal case is in everyone’s interest.”

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