Rent tribunal cases surge following Renters’ Rights Act

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Rent tribunal cases surge following Renters’ Rights Act

Industry experts have warned that the Renters’ Rights Act has shifted the balance of power towards tenants, as new data shows a surge in landlords being taken to tribunal over rent increases.

Data from Hamptons, reported by The Times, shows that property tribunals made 166 market rent decisions in July, almost four times the 44 decisions recorded during the same month in 2025.

Since 1 May, landlords seeking to increase the rent on a periodic tenancy must use a Section 13 notice, giving at least two months’ notice and proposing no more than the open market rent.

A tenant can challenge the notice at the First-tier Tribunal for a £47 fee, while the resulting rent cannot exceed the landlord’s figure or be backdated.

Tenants feeling empowered to exercise rights

According to Hamptons data reported by The Times, the monthly average was 42 decisions in the year to late April 2026. This rose to 109 in May and 129 in June, with tenants initiating around 60% of the most recent cases.

Paul Rooke, partner at Mayo Wynne Baxter, warns: “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”.

Greater scrutiny of rent review decisions

Mr Rooke adds: “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”.

Landlords seeking to increase rents

Kristine Ng, partner at Morr & Co, said landlords seeking to increase rents should have evidence to support the proposed increase.

She said: “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.

“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”.

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Guarantor reliance surges as renters face growing affordability pressures

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Guarantor reliance surges as renters face growing affordability pressures

Guarantor reliance for tenants has doubled in the last 18 months as landlords look for greater financial security.

Data from HomeLet reveals the share of accepted applications requiring a guarantor has risen from around 9% in January 2025 to 18.4% in July 2026, with almost one in five lets now agreed with a guarantor in place.

Under the Renters’ Rights Act, landlords and agents can no longer require several months’ rent upfront. Once a tenancy agreement has been signed they may require no more than the initial month’s rent before occupation, although a tenant can voluntarily choose to pay rent early once the tenancy has begun.

Guarantor usage has been climbing

According to the data, guarantor usage has been climbing more rapidly in 2026, rising from 11.4% of applications in January 2026 to 18.4% by July 2026.

The proportion of accepted applications with a guarantor has also risen from 16.7% in June 2026 to 18.4% in July 2026.

The data also reveals affordability pressures for tenants, with renters now typically spending around a third of their income on rent when starting a new tenancy.

Rents also continue to rise, with average UK rents reaching £1,369 in July 2026.

Mike Dawson, head of sales at Barbon Insurance Group, explains: “What we are seeing is that guarantors are no longer the exception and the story behind that shift is affordability. In many parts of the country, including London, a typical tenant is now committing a very substantial share of their income to rent when a tenancy begins.

“While Renters Rights and the ban on rent in advance have added a further dimension, our data shows this is on top of the longer term trend. As these pressures build, it’s clear that headline income and headline rent only tell part of the story about whether a tenancy is sustainable.

“Understanding how much headroom there is in a tenant’s overall finances over the life of the tenancy is becoming just as important. For agents and landlords, that goes to the heart of how you assess tenants and choose between applicants in a way that is fair, evidence based and gives each tenancy the best chance of succeeding.”

Overseas tenants struggling to provide a guarantor

The news comes as overseas tenants are struggling to provide a UK-based guarantor despite being able to afford the rent.

According to data from Zero Deposit, London rents have increased by almost 10% (9.9%) in the two years since May 2024, rising from an average of £2,088 to £2,294.

Data from Foxtons reveals that almost two-thirds (63%) of its tenants come from overseas, meaning many international renters may struggle to provide a UK-based guarantor despite being able to afford the rent.

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