Tribunal

Rent setting tribunals raise the stakes for landlords

Since the introduction of the Renters’ Rights Act, landlords who want to raise rents must follow a formal procedure.

To examine how tribunals are assessing proposed rent increases, industry body Propertymark has reviewed a number of recent decisions and uncovered some common issues.

How the new rent rules work

Since 1 May, landlords in England have been restricted to one rent rise per year, with no increases allowed during the first 12 months of a new tenancy.

They must also give tenants at least two months’ notice using the government’s Form 4A, even if the increase has already been agreed.

Tenants can challenge it at the First-tier Tribunal, which assesses the property’s open market rental value.

The tribunal can then approve the increase or set a lower figure, which can potentially be below the existing rent. However, it cannot set a higher rent than the landlord has requested.

Rent increases need to be justified

One of the big lessons from Propertymark’s investigations was that landlords need evidence to justify the full market rent, not just the proposed increase itself, or they could even have their existing rent reduced.

In Manchester, the landlord of a furnished two-bedroom flat proposed raising the monthly rent from £1,650 to £1,700.

The tribunal examined similar properties in the same building and neighbouring developments and concluded that the true market rent was £1,450.

As a result, instead of gaining an extra £50 a month, the landlord had to accept a £200 reduction.

What evidence carries the most weight?

Another key finding was that the closer the comparison, the more persuasive the argument. And those comparisons need to account for differences in size, layout, furnishings, condition and any services included in the rent.

In Ashton-under-Lyne, a landlord proposed increasing the monthly rent on an en-suite room in a shared house from £675 to £725.

However, the tribunal gave greater weight to rents for other rooms in the same building than properties elsewhere in the area and set the rent at £700.

In addition, rents actually agreed carry more weight than advertised asking prices.

In a separate tribunal decision involving Skylark Point, a build-to-rent development in London, the landlord proposed increasing the rent from £3,102.82 to £3,180, but the tenant argued it should be £3,040.

The tenant supplied details of four nearby advertised flats, whereas the landlord provided nine examples of rents actually agreed for similar properties between April and June.

All nine of the landlord’s examples exceeded the proposed rent, and so the tribunal approved the full increase.

Size and condition matter

A property’s rental value is not just determined by the number of bedrooms. Its overall size, room dimensions, condition and usable living space are equally important.

In West London, a landlord wanted to increase the monthly rent on a flat from £1,200 to £1,750.

Although described as having two bedrooms, the tribunal considered its 39.6-square-metre floor area more consistent with a small one-bedroom property and noted it also lacked a conventional lounge.

In support of the proposed increase, the landlord submitted an agent’s valuation of £2,201. However, the tribunal discounted it because it found the supporting comparisons lacked sufficient detail and there was no evidence that the agent had ever inspected the flat.

Instead, it assessed its value at £1,650, then deducted 15% for poor fittings, workmanship, glazing and other shortcomings, and set the rent at £1,402.50.

Those kinds of maintenance issues arose on more than one occasion, even where the landlord did not cause them.

In Leeds, a tribunal assessed the market rent of a two-bedroom house at £1,000 but deducted £75 because of unresolved drainage problems.

The letting agent claimed the landlord had first become aware of the drainage problems in February 2026. However, text messages showed the tenant had been discussing them directly with the landlord since August 2025.

Preparing for a rent review

Overall, the evidence from the tribunals shows that landlords who fail to prepare properly risk unexpected outcomes, including having their rents reduced rather than increased.

Propertymark therefore recommends:

Establishing a realistic market rent, supported by evidence of recently agreed rents for comparable properties.

Keeping accurate property details, including photographs, floor plans, room measurements and information about furnishings and condition.

Supporting agents’ valuations with evidence of comparable properties, details of whether an inspection took place and an explanation of how the valuation was calculated.

Maintaining proper repair records, including when problems were reported, what work was completed and whether any problems remain unresolved.

Discussing proposed increases with tenants before issuing formal notices, giving them an opportunity to raise concerns.

Landlords should also be aware that, under the new rules, if a tribunal reaches its decision after the proposed increase date, the new rent normally takes effect from the next rent payment date rather than being backdated.

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