Property professionals have warned that new rules allowing tenants to challenge rent increases could place significant strain on the courts and tribunal system once the Renters’ Rights Act comes into force.
A report published by The Times explains that under the proposed legislation, tenants will be given the right to dispute any rent rise by referring the matter to the First-tier Tribunal (FTT). This marks a major change to how rent increases are handled in the private rented sector.
New limits on tribunal decisions
Under the reforms, the tribunal will no longer be permitted to set a rent level that is higher than the amount originally requested by the landlord, even if it concludes that the open market rent should be higher. This is designed to protect tenants from facing larger increases after bringing a case forward.
In addition, the tribunal will be granted powers to delay rent increases by up to two months in situations where tenants can demonstrate financial difficulty. Supporters of the policy say this will provide renters with greater security, but critics believe it may unintentionally encourage widespread challenges.
Risk of automatic challenges
Senior legal figures have expressed concern that the new system could lead to tenants contesting almost every rent increase, not necessarily because it is unfair, but simply to delay paying the higher amount.
Geoffrey Vos, Master of the Rolls and head of civil justice in England and Wales, warned the Housing Law Practitioners’ Association that the Renters’ Rights Act could create strong incentives for tenants to apply to the tribunal whenever a rent increase is proposed. He suggested that this could significantly slow down the process and create further pressure on an already stretched legal system.
Landlords left in uncertainty
Another key issue highlighted in The Times is that any rent increase approved by the tribunal would only take effect from the date of the tribunal’s final decision. This differs from the current approach, where rent increases usually apply from the date the landlord serves formal notice.
As a result, even where a tenant’s challenge is unsuccessful, the case could still delay the start of higher rent payments by several months. Industry leaders argue that this would leave many landlords in a prolonged state of uncertainty over their rental income, particularly at a time when operating costs are already rising.
This delay could be especially difficult for small landlords who rely on rental income to cover mortgage payments, maintenance costs and other essential expenses.
Tribunal capacity under pressure
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), has also voiced serious concerns about whether the tribunal system has the resources to cope with a surge in applications.
He told The Times that the First-tier Tribunal currently has only 34 judges, which he believes is insufficient to manage the expected increase in cases once tenants begin exercising their new rights.
Beadle warned that this is just one example of where the government’s positive statements about reform have not been matched by practical preparation. He said there is little evidence that the detailed operational work needed to support the changes has been completed.
Court system already facing delays
The NRLA has previously raised concerns about existing backlogs in the court system. Landlords are already experiencing lengthy waits when applying for possession hearings, often facing weeks or even months of delay before their cases are heard.
The organisation fears that allowing large numbers of tenants to challenge rent increases will place additional pressure on a system that is already struggling to keep up with demand.
In a letter sent to the Justice Select Committee, the NRLA warned that court capacity could be overwhelmed if the Renters’ Rights Act is introduced without significant improvements to staffing and resources.
Questions over court readiness
During the Report Stage of the Renters’ Rights Act, the Housing Minister told Parliament that ensuring the courts are prepared is essential for the success of the new framework. The NRLA said it agreed with this statement but argued that the government has yet to explain what being “ready” actually means in practice.
The association questioned how the planned digitisation of possession cases will work and what outcomes it is expected to achieve. It also raised concerns about how success will be measured and whether there are clear benchmarks for reducing delays and improving efficiency.
Without firm definitions and transparent planning, the NRLA believes there is a risk that the reforms could create more problems than they solve, particularly for landlords trying to manage properties in an increasingly regulated environment.
Balancing tenant protection and system capacity
While the Renters’ Rights Act aims to provide tenants with stronger safeguards against unfair rent increases, industry experts say the policy must be supported by a tribunal and court system that can handle the additional workload.
They warn that without adequate preparation, the reforms could lead to widespread delays, uncertainty for landlords and tenants alike, and further pressure on housing courts that are already operating close to capacity.
As the legislation moves closer to implementation, calls are growing for clearer guidance from the government on how tribunals will be resourced and how the new dispute process will function in practice.
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