Government claims tribunal rent system protects tenants from arrears

Government claims tribunal rent system protects tenants from arrears

Cracked rental property protected by a shield with a rent arrears notice, symbolising tenant rent dispute protections
8:01 AM, 29th June 2026, 3 weeks ago 10

The government has claimed that tribunal-determined rents will protect tenants from falling into rent arrears.

In a Parliamentary written question, Independent MP Iqbal Mohamed asked whether landlords should be required to notify councils and the Department for Work and Pensions when a First-tier Tribunal finds a tenant has been overcharged rent.

The government has announced a £47 fee for tenants challenging a rent increase through the first-tier property tribunal.

Protect tenants from falling into rent arrears

In response to Mr Mohamed’s question, housing minister Matthew Pennycook claimed mechanisms are in place to support tenants.

He said: “Where a tenant challenges a proposed rent increase at the Tribunal, any rent increase will be payable only from the start of the next rent period following the date of the Tribunal’s determination.

“This means that, in such circumstances, if the Tribunal determines a rent level below what the landlord proposed, the landlord will not have received any rent above the level determined by the Tribunal. This is intended to protect tenants from falling into rent arrears.”

Landlords left in limbo

However, as previously reported by Property118, critics argue the same mechanism could encourage tenants to challenge rent increases simply to delay higher payments.

The mechanism would mean 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”.


Share This Article

Comments

  • Member Since November 2025 - Comments: 11

    8:45 AM, 29th June 2026, About 3 weeks ago

    Unfortunately, this is going to incentivise me to set the rents as high as I legally can to offset the losses arising from this farce.

  • Member Since June 2019 - Comments: 894

    8:47 AM, 29th June 2026, About 3 weeks ago

    The tribunal was designed to protect tenants from excessive rents – the message here is that they want to suppress rents to a mythical ‘affordable’ level and not market rent.

  • Member Since October 2020 - Comments: 1267

    9:40 AM, 29th June 2026, About 3 weeks ago

    Reply to the comment left by Simon Kinzley at 29/06/2026 – 08:45
    …or use the same rules to the landlords advantage. Set the initial rent above open market level on the basis that if and when the tenant challenges it at the Tribunal, it will take months to get a determination and any lower rent will only apply from that point. I’m not aware of any penalty or costs to the landlord of doing this. Of course if landlords start gaming the system en-masse, Gov’t will be quick to close the loophole.

  • Member Since January 2023 - Comments: 166

    10:18 AM, 29th June 2026, About 3 weeks ago

    there are so many variables in determining what is the true market value of a seemingly homogenous item. one two bed flat in a post code can be worth a lot more or less than another. Parking for example is a plus, more efficient heating, decor of common parts, decor of flat. How will tribunal cope with visiting so many flats?

  • Member Since January 2023 - Comments: 166

    10:40 AM, 29th June 2026, About 3 weeks ago

    Reply to the comment left by Simon Kinzley at 29/06/2026 – 08:45
    It is very much a case of re-introduction of the Rent Act by the back door. Its not surprising that smaller landlords are cashing out. This, of itself will result in more competition for the remaining rentals and higher asking rents Once again it would seem teh Government has achieved the exact opposite of what they intended

  • Member Since February 2024 - Comments: 87

    10:43 AM, 29th June 2026, About 3 weeks ago

    Oh silly me !!!! I used to think the best way for tenants to stop getting into arrears was to pay their correctly Agreed rent at the correctly agreed time? I know, if I mess up on my mortgage payments I will be in trouble from a very large organisation called a building society, who have the legal department, funds and know how to ‘take me to the cleaners’ and guess what, I will lose my property and be homeless.
    Where does this line of everyday logic break down for the government ministers??

  • Member Since April 2024 - Comments: 6

    11:40 AM, 29th June 2026, About 3 weeks ago

    On a similar post last week I made the following points.
    1. This is the most outrageous of all the perverse incentives bought in by the RRA (other than councils being incentivised to use landlords as cash cows via an equally outrageous fining regime)
    2. Tenant charities (and i daresay councils aswell if they pay HB) are encouraging all tenants to challenge as a way to bring MRs down
    3. Let’s assume it will take the Tribunal potentially a year to adjudicate and part of the tenant delay game is not to challenge until the day before the new rent would take effect!). At that point the landlords proposed new rent (unless the Tribunal reduces it having received a quiet word from those in power) is no longer at MR anyway, it is a year behind. As the rent only applies from their decision will they be looking at the MR at that point or will they have the audacity to look back at the MR which existed at the date form 4 was served?
    3. If it takes the Tribunal a year, we would already be into the next annual rent review, except we are not are we?! New form 4 requires me to put in the date when the last rent increase TOOK EFFECT, not the date I flippin asked for it which but for the perverse incentive would have increased a year ago! I can not do another rent review for 12 months from when the new rent took effect.
    4. Rent increases will be once every two years, not annually and will always be one year behind the correct MR and may indeed be reduced further by the Tribunal!

    I am lucky to have intelligent, respectful tenants, all in gainful employment. I have an excellent relationship will all 6 in my hmo (my only property). Long may it continue that way. I am sorry to say that these changes will not assist those at the lower end of society where the risk that they will (and may be advised to) game the system, lead to them now being an even greater risk than they were before.

    I am going through a rent review with one of my guys now, having explained these changes to all of them and asked that they be as respectful of my needs as a landlord as I have always been of their needs as tenants. I have explained to my tenant that I will be putting into form 4 the maximum possible rent that I feel could be justifiable. I have said that this should not be seen as an indication of mistrust and that it is just a new policy that I will be applying across the board. Isn’t it just shameful that the government should introduce such an unfair regime but also one that introduces a level of potential mistrust within the landlord/tenant relationship?

    My tenant and I have already discussed a figure that she and I would be happy to agree, so she is invited to come back to me with a counter offer, in writing, alot less than that which will be in the form.

    Could this be any more ridiculous and unfair?

  • Member Since June 2015 - Comments: 345

    1:29 PM, 29th June 2026, About 3 weeks ago

    Social Housing providers increase rent every April in line with a government formula of September’s CPI plus 1%. Surely the PRS should be able to use the same formula without any tenant recourse to a tribunal. Fair enough to have a tribunal for blatantly excessive rent increases but there should be an expectation of some kind of annual increase.
    Our costs increase every year without fail. Insurance, boiler servicing, safety checks, etc. Most of us regard being a landlord as a job, so surely we should expect an annual pay rise, just as workers and benefit claimants expect.

  • Member Since October 2023 - Comments: 44

    4:37 PM, 29th June 2026, About 3 weeks ago

    Oh funny me and I thought we would have a level playing field, must the socialist try to destroy UK plc, and any hope of making a living for you old age. And with land tax they have us by the so and so, another industry destroyed by so called honourable MPs for votes. Short term gains and long them problems for UK. Getting too old for this nonsense.

  • Member Since April 2018 - Comments: 508

    6:34 PM, 29th June 2026, About 3 weeks ago

    Reply to the comment left by Jo Westlake at 13:29
    The difference being is that social housing providers can rely on the council tax to dig them out of a hole so they can use that formula and if they go in to debt as so many have, no worries., rather like the government.The private sector landlord has to run it as a business.

Have Your Say

Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.

Not a member yet? Join In Seconds


Login with

or

Related Articles