Landlords demand significant rent hikes – tribunals cut them down to size

Landlords hoping to pass higher tax bills on to tenants could face a reality check, with tribunals cutting seven in ten challenged rent increases.

New research shows landlords typically sought rent rises of 14%. However, tribunals allowed a typical increase of just 7.7%.

The findings come after the chancellor John Healy announced another increase in tax on rental income. Rates will rise to 24%, 44% and 49% from April 2027.

A separate survey by Pegasus Insight found that 64% of landlords would raise rents if their taxes increased.

But the latest tribunal figures suggest that passing on higher costs may prove difficult when tenants challenge proposed increases.

Seven in ten proposed increases reduced

Landlord Sums analysed 667 market rent decisions made by the First-tier Tribunal since 1 May 2026.

Tribunals set rents below the landlord’s proposed amount in 70% of cases. Only 26% of proposed increases were approved in full.

In 10% of cases, tribunals allowed no increase at all.

Another 4% resulted in rents falling below the amount tenants were already paying.

Landlords seeking larger increases were particularly likely to see their proposals reduced.

Tribunals cut proposed rises of between 15% and 25% in 83% of cases.

For proposed increases exceeding 50%, that figure rose to 88%.

Tribunal decisions more than triple

The research also reveals a sharp rise in the number of rent disputes reaching a tribunal decision.

Between January 2025 and April 2026, tribunals decided an average of 48 market rent cases each month.

That figure increased to 165 a month between May and September 2026.

September recorded 194 decisions, the highest monthly total during that period.

The increase follows changes introduced under the Renters’ Rights Act.

Landlords in England can now raise rents only once a year using the statutory notice procedure.

Tenants can challenge proposed increases at the First-tier Tribunal.

Under the new rules, tribunals cannot set rents above the amount landlords originally requested.

The new rent also takes effect from the tribunal’s decision date, rather than retrospectively.

This reduces the financial risk for tenants considering a challenge.

Where are landlords facing the biggest cuts?

The research reveals significant regional differences.

London landlords sought the largest typical increases, at 16.7%. Tribunals allowed a typical rise of 9.5%.

The South recorded the highest proportion of proposed increases being reduced, at 75%.

Warning for landlords and letting agents

A spokesperson for Landlord Sums, which is run by a north London landlord, said: “The Budget has left many landlords looking at rent rises to cover a bigger tax bill. But a tenant can now challenge any rise, and the tribunal is siding with tenants far more often than not.

“Landlords asking for double-digit rises are seeing them roughly halved, and a few end up with less rent than they started with. The safest rise is one you can back up with local rents.”

The findings underline the importance of accurate rental valuations when agents advise landlords on proposed increases.

Evidence of comparable local rents could prove particularly important when tenants dispute an increase.

However, the analysis covers only rent rises challenged by tenants. Most increases never reach a tribunal.

The findings therefore do not reflect the outcome of rent increases across the wider private rented sector.

Some decisions also relate to notices served before the Renters’ Rights Act took effect.

Landlord Sums examined 982 published decisions from January 2025 to October 2026. Of those, 667 were decided on or after 1 May 2026.

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