Renters’ Rights Bill 8: Rent Review

As the Renters’ Rights Bill proceeds through Parliament, this is the eighth of ten articles we are publishing looking at the proposed changes.  The article addresses reform of the English private rented sector only.  Links to the articles already published are at the end of this article. The next article will address regulation and landlord registration.

The stated intention of the Bill’s rent review provisions is to 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. 

What changes does the Bill make? 

• the existing statutory rent review process for assured tenancies will be the default position and cannot be opted-out
• the rent review is to the open market rate and can be upwards or downwards.
• there can only be one rent review a year
• the rent review will be determined by the First Tier Tribunal if not agreed between landlord and tenant
• the First Tier Tribunal will never award an open market rent in excess of the rent sought by the landlord
• rent reviews will only apply from the date of the First Tier Tribunal determination.

What practical difference would the Bill make? 

The Bill makes it significantly more likely that tenants will challenge proposed increases.  This is because tenants will no longer risk no fault eviction if they refuse to agree to proposed rental increases and will no longer risk the Tribunal imposing a rent that is higher than the rent the landlord has sought.

The provisions to apply the reviewed rent only from the date of its determination, and never to order a rent in excess of the amount asked for by the landlord could have a material impact, particularly if there are delays in the First Tier Tribunal’s determination of the rent as a result of the number of rent reviews being instigated.    

More of the fine detail around this is awaited and will be important given that tenancy term lengths are expected to increase with the abolition of no fault eviction, so rent reviews will have a higher profile. 

Items in this series:

Renters' Rights Bill 1: Residential tenancy changes proposed by the Bill, Maddie Dunn

Renters' Rights Bill 2: How to obtain possession if section 21 notices are abolished? Maddie Dunn

Renters’ Rights Bill 3: Children, Benefits and Pets, Maddie Dunn

Renters’ Rights Bill 4: Enforcement, Maddie Dunn

Renters' Rights Bill 5: Succession, Maddie Dunn

Renters' Rights Bill 6: Employee Accommodation, Maddie Dunn

Renters' Rights Bill 7: Agricultural workers' housing, Maddie Dunn

Up next: Regulation and Registration