Record number of landlords taken to court over rent rises – legal experts react

The number of rental disputes reaching property tribunals has climbed to a record high following changes under the Renters’ Rights Act.

Analysis by Hamptons shows that property tribunals made 166 market rent decisions in July. That was almost four times the 44 decisions made during the same month last year.

Tenants initiated 60% of the July cases after the Renters’ Rights Act came into force at the beginning of May. They had lodged the remaining cases before the legislation took effect.

The figures mark a significant increase in tribunal activity. The monthly average stood at 42 decisions during the 12 months to May 2026. This rose to 109 in May and 129 in June.

The Renters’ Rights Act abolished Section 21 ‘no-fault’ evictions. Previously, landlords could use Section 21 to regain possession without establishing specific grounds.

Some tenants had been reluctant to challenge proposed rent increases because they feared receiving a Section 21 notice in response.

Changes to the tribunal process have also reduced the potential financial consequences for tenants who challenge an increase.

If a tribunal approves the landlord’s proposed rent, the tenant now pays the higher amount from the date of the decision. Previously, tribunals could backdate the increase to the application date.

Paul Rooke, partner at Mayo Wynne Baxter, said: “The latest tribunal data is a clear indication that the Renters’ Rights Act has shifted the balance of power towards tenants.

“By removing the threat of retaliatory section 21 ‘no-fault’ eviction and eliminating the risk of backdated rent liability if a challenge is unsuccessful, the Act has reduced the downside for tenants who wish to contest rent increases.

“The sharp rise in tribunal applications can be seen as a reflection of tenants feeling empowered to exercise rights that previously existed in theory but were often underused in practice.

“It is important for landlords to note that rent increases can no longer be justified simply by reference to rising costs.

“Any proposed increase must be supported by robust evidence of market rent, including comparable local lettings, property condition, location, amenities and recent rental transactions.

“A clear audit trail showing how the figure was reached and ensure strict compliance with the statutory section 13 process will need to be kept.

“Evidence, rather than assumption, will increasingly determine outcomes.

“It is expected that rent challenges will become a significant new category of landlord and tenant dispute.

“Current figures suggest tribunals are coping and processing times have improved, but sustained growth in applications may place pressure on a system already dealing with service charge, leasehold and other property disputes.

“As awareness of tenants’ rights increases, landlords should expect greater scrutiny of rent review decisions and they should treat evidence gathering and procedural compliance as essential risk management tools.”

The NRLA has previously raised concerns about the additional pressure the Renters’ Rights Act could place on courts and tribunals.

David Fell, analyst at Hamptons, commented: “The changes that have been introduced through the Renters’ Rights Act have upped the tribunal’s profile and we are definitely seeing significantly more tenants using it as a route to challenge rent increases.

“I think as awareness grows, we will continue to see these numbers increase.”

Despite the sharp rise in cases, tribunals are reaching decisions more quickly.

The average period between an application and decision fell to 80 days in July. That compares with 113 days in May and 172 days in April.

The Ministry of Justice aims to recruit more than 1,000 judges and tribunal members each year. It has identified property tribunals as a priority area.

Property tribunals also handle service charge disputes, lease extensions and rent repayment orders, alongside challenges to market rents.

Kristine Ng, partner at Morr & Co, commented: “The increase in tribunal challenges is not particularly surprising.

“Many landlords are seeking to increase rents to reflect current market conditions, while tenants remain under significant affordability pressures and are increasingly willing to question whether those increases are justified.

“The right to challenge a rent increase is not new.

“What has changed is that the Renters’ Rights Act has made disputes about rent increases much more prominent in practice.

“Tenants appear increasingly willing to use the tribunal to test whether a proposed increase genuinely reflects the market rent for the property.

“The abolition of section 21 ‘no fault’ evictions and changes to the financial consequences of bringing a challenge have also reduced some of the factors that may previously have discouraged tenants from doing so.

“For landlords, the key point is that the tribunal is concerned with market rent, rather than simply whether a landlord has experienced increased costs.

“A landlord may have perfectly legitimate reasons for seeking a higher rent, but if a challenge is brought the question will ultimately be what rent the property could reasonably achieve on the open market.

“Landlords should therefore ensure that any proposed increase is supported by evidence of comparable local lettings and prevailing market conditions.

“As awareness of these rights grows, rent determination cases are likely to become a much more prominent feature of the residential landlord and tenant landscape, placing increasing demands on tribunal resources.”