by Tim Wallace, Alexandra Goss, Ben Beadle, Liz Rowlinson, Alexa Phillips, Ruby Hinchliffe, telegraph.co.uk
July 17, 2023
Landlords who are being taken to court over rent increases are being told they can charge even more, as tenants’ efforts backfire.
Tenants can challenge section 13 notices of a rent increase at a First-tier Tribunal if they do not think the rent is in line with market rates in the area.
The tribunal considers whether the cost is comparable with similar properties in the locality, but can also decide to set a maximum rent that is higher than what the landlord has proposed.
An analysis of 30 tribunal cases in the second quarter of this year by the i newspaper found that in eight cases – more than a quarter – the tribunal decided the landlord could raise the rent by an even bigger amount.
In 10 cases (33pc), the tribunal found the rent should stay the same, and in 11 (37pc) it could be raised but not as much as the landlord wanted.
In one case, the tribunal lowered the rent to below the original monthly cost.
In many cases, the tribunal said landlords could add hundreds of pounds to the rent they had asked for.
Landlords do not have to raise the rent by the maximum suggested by the tribunal, but the decision does mean they are free to do so without consequence.
In one example in May, 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 a submission about the “dated” condition of the property was taken into account.
The tribunal said: “The kitchen and bathroom fittings were said to be the original and as in-situ when the applicant’s mother took up occupation in 1964.”
In an April hearing, a landlord with a flat in south east London wanted a rent increase from £86.42 per week to £92.75 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.
It said: “Given the issues regarding damp this is reduced to £800 per month [equivalent to around £185 per week].”
A spokesman for the Department for Levelling Up, Housing and Communities said: “The Renters’ (Reform) Bill currently going through Parliament will prevent large rent increases being used as a backdoor method of eviction, whilst protecting landlords’ ability to increase rent each year in line with market levels.
“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.”
I don’t understand the benefit to a tenant here. Surely if the tribunal blocks the section 13, it’ll just head to a section 21 or some sort of section 8 (?)
What I can’t see happening is the tenant staying put for long on the previous rental amount.
If you are lucky enough to win your appeal, or even if the landlord dislikes that you dared to be a bad peasant, it’s usually possible for him to immediately issue an S21 eviction notice (i.e. in England on most tenancies).
Haha imagine your rent going up by £40 a month, challenging it at tribunal and being told by the tribunal that the landlord can raise it even higher!
Imagine going to tribunal over a £40 increase 🤡 that’s called fucking around and subsequently, finding out.
The actual headline should be “Tenants who challenge unfair rent increases usually win in court”…
Anyone starting to think the system has been set up entirely to make landlords the most money? How many Tory MPs are also landlords do we know?
Our rent (London) went up by £700 a month. We said thank you very much, here’s our 1 months notice and so far the flat has been sitting empty for 2 months.
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Landlord lost a tenant who paid on time, was tidy and left the place immaculate just for greed…
8 comments
by Tim Wallace, Alexandra Goss, Ben Beadle, Liz Rowlinson, Alexa Phillips, Ruby Hinchliffe, telegraph.co.uk
July 17, 2023
Landlords who are being taken to court over rent increases are being told they can charge even more, as tenants’ efforts backfire.
Tenants can challenge section 13 notices of a rent increase at a First-tier Tribunal if they do not think the rent is in line with market rates in the area.
The tribunal considers whether the cost is comparable with similar properties in the locality, but can also decide to set a maximum rent that is higher than what the landlord has proposed.
An analysis of 30 tribunal cases in the second quarter of this year by the i newspaper found that in eight cases – more than a quarter – the tribunal decided the landlord could raise the rent by an even bigger amount.
In 10 cases (33pc), the tribunal found the rent should stay the same, and in 11 (37pc) it could be raised but not as much as the landlord wanted.
In one case, the tribunal lowered the rent to below the original monthly cost.
In many cases, the tribunal said landlords could add hundreds of pounds to the rent they had asked for.
Landlords do not have to raise the rent by the maximum suggested by the tribunal, but the decision does mean they are free to do so without consequence.
In one example in May, 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 a submission about the “dated” condition of the property was taken into account.
The tribunal said: “The kitchen and bathroom fittings were said to be the original and as in-situ when the applicant’s mother took up occupation in 1964.”
In an April hearing, a landlord with a flat in south east London wanted a rent increase from £86.42 per week to £92.75 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.
It said: “Given the issues regarding damp this is reduced to £800 per month [equivalent to around £185 per week].”
A spokesman for the Department for Levelling Up, Housing and Communities said: “The Renters’ (Reform) Bill currently going through Parliament will prevent large rent increases being used as a backdoor method of eviction, whilst protecting landlords’ ability to increase rent each year in line with market levels.
“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.”
I don’t understand the benefit to a tenant here. Surely if the tribunal blocks the section 13, it’ll just head to a section 21 or some sort of section 8 (?)
What I can’t see happening is the tenant staying put for long on the previous rental amount.
If you are lucky enough to win your appeal, or even if the landlord dislikes that you dared to be a bad peasant, it’s usually possible for him to immediately issue an S21 eviction notice (i.e. in England on most tenancies).
Haha imagine your rent going up by £40 a month, challenging it at tribunal and being told by the tribunal that the landlord can raise it even higher!
Imagine going to tribunal over a £40 increase 🤡 that’s called fucking around and subsequently, finding out.
The actual headline should be “Tenants who challenge unfair rent increases usually win in court”…
Anyone starting to think the system has been set up entirely to make landlords the most money? How many Tory MPs are also landlords do we know?
Our rent (London) went up by £700 a month. We said thank you very much, here’s our 1 months notice and so far the flat has been sitting empty for 2 months.
​
Landlord lost a tenant who paid on time, was tidy and left the place immaculate just for greed…