In line with the government’s manifesto, we will empower private rented sector tenants to challenge unreasonable rent increases. This will prevent unscrupulous landlords using rent increases as a backdoor means of eviction, while ensuring rents can be increased to reflect market rates.
In future, all rent increases in the private rented sector will be made using the same process. Landlords will be able to increase rents once per year to the market rate – the price that would be achieved if the property was newly advertised to let. To do this, they will need to serve a simple ‘section 13’ notice, setting out the new rent and giving at least 2 months’ notice of it taking effect.
If a tenant believes the proposed rent increase exceeds market rate, they can then challenge this at the First-tier Tribunal, who will determine what the market rent should be.
We will reform how the Tribunal works to ensure tenants feel confident in challenging poor practice and enforcing their rights. Currently, tenants face the risk that the Tribunal may increase rent beyond what the landlord initially proposed – we will end this, so tenants never pay more than what the landlord asked for. We will also end the practice of backdating rent increases – with the new rent instead applying from the date of the Tribunal determination – to ensure tenants are not unexpectedly thrust into debt. And, in cases of undue hardship, we will give the Tribunal the power to defer rent increases by up to a further 2 months.
To ensure tenants always have a right of appeal, and prevent backdoor evictions, rent increases by any other means – such as rent review clauses – will not be permitted. This will also ensure all parties are clearer on their rights and responsibilities.
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