Propertymark calls for clearer guidance as rent tribunal cases surge

An industry body has called for more clarity around the tribunal process under the Renters’ Rights Act.

Propertymark has warned that, with rent tribunal cases surging, there needs to be clearer guidance and understanding of the evidence tribunals consider.

The comments come as the government announces that HMRC’s Valuation Office will become responsible for making initial decisions on challenges to rent increases in England.

The government says the move will help resolve disputes more quickly and reduce pressure on the tribunal system. The changes form part of wider reforms under the Renters’ Rights Act.

Tribunal helpline needs qualified staff

Greg Tsuman, past president of ARLA Propertymark, said: “We need much greater clarity around the tribunal process, including clearer guidance, simpler forms and practical advice for tenants who want to challenge a rent increase before it takes effect.

“There also needs to be a better understanding of the evidence tribunals consider. They are looking at achieved rents rather than simply advertised asking rents, and that distinction is important for both landlords and tenants.”

Mr Tsuman added: “The tribunal helpline needs suitably qualified staff who can give basic but accurate and practical legal guidance. Now, callers are met with a recording making clear that anything discussed is not legal advice, which does little to inspire confidence in the support being provided.

“With constrained supply likely to mean tenants stay in properties for longer, maintaining a positive relationship between landlord and tenant is becoming even more important. It is a relationship that works best when both sides understand each other’s position, and a good agent can play an important role in finding a sensible outcome that protects that relationship for the longer term.”

Have conversations with tenants

Kim Lidbury, ARLA Propertymark President, advised letting agents to begin having conversations with tenants before a Section 13 notice is issued, especially if they are having financial issues.

She said: “A tenant is sometimes using a Section 13 notice as an opportunity to raise concerns for other reasons outside of rent increases, or they are not telling us about their circumstances. Because they are not having those conversations with us, they have gone straight to the tribunal stage, which can make things more difficult.

“Most landlords have costs and responsibilities, and it is a good outcome for them and the tenant if they stay at a property for some time.”

Tenants can negotiate with their landlord

Mr Tsuman added tenants can still negotiate with their landlord as an alternative to a tribunal.

He explains: “Whilst this is still an informal challenge, the two-month notice period can result in a better deal for the tenant, especially if the landlord is confident with the comparables.

“This saves the landlords and tenants time and money. Letting agents are guiding landlords into not asking for unreasonable hikes. There is nothing in the legislation that prevents landlords and tenants from reaching an alternative agreement.”