Tenant ‘fair rent’ tribunal cases backfire with big rises
Renters often end up with even larger rent increases after a tribunal hearing than the landlord wanted, it has been reported.
Tenants who challenge rent increases at tribunals are often facing even bigger rises, new research shows.
In some cases, renters are ending up with figures that are hundreds higher than the landlord suggested.
Analysis by the i newspaper of 30 property tribunal hearings in the last three months reveals that more than a quarter, or eight cases, ended with higher increases than the landlord proposed.
In 10 cases, the tribunal decided the rent should stay the same, and in 11 it could be raised, but not as much as the landlord wanted.
The tribunal lowered the rent in one case to below the original monthly amount.
Dated condition
In one example, a landlord who owned a property in Surrey had asked to increase the rent from £1,260 to £1,300 per month, but the tribunal initially said a figure of £2,200 per month was reasonable.
It concluded with a figure of £1,540 once evidence about the dated condition of the property was considered.
A landlord with a flat in south east London wanted a rent increase from £86 per week to nearly £93 per week (from about £375 to £402 per month), but the tribunal initially said the property could command £1,050 per month in good condition.
But it said: “Given the issues regarding damp this is reduced to £800 per month [equivalent to around £185 per week].”
Freedom
A Department for Levelling Up, Housing and Communities spokesperson said: “We have listened to concerns and think it’s fair that a tribunal is not limited when determining market rent rates.
“This will mean the tribunal has the freedom to make full and fair decisions, and can continue to determine the market rent of a property.”
So, as Tenant support groups have claimed – landlords are not ‘Milking the most out of tenants ‘ but rent rises are often BELOW market value !