Tenants facing exorbitant rent hikes may soon be required to pay fees to challenge them, as raised by the Renter’s Reform Coalition (RCC), a collective of 18 prominent housing and renters’ groups. The RCC expressed apprehensions to Housing Minister Matthew Pennycook regarding proposals to institute a charge for accessing rent tribunals.
According to the RCC, rent tribunals could become the sole avenue for tenants to contest substantial rent increases, potentially exploited by landlords to coerce tenants out or exert pressure on them.
With the abolition of section 21 no-fault evictions on May 1, advocates are worried that obstacles to challenging rent hikes might allow landlords to use such increments as a covert means of eviction. Rents in England have surged by more than 32% in the last five years, averaging £1,423 per month, affecting 4.4 million private renters living in poverty.
Research conducted by Generation Rent among tenants suggests that the imposition of fees could dissuade renters from contesting a £200 monthly rent increase, equivalent to a 14% rise from the average rent in England. While 90% of respondents indicated they would challenge the increase if tribunals were free, only half expressed willingness to do so if a £200 fee was mandated.
Clara Collingwood, Director at the Renters’ Reform Coalition, cautioned that introducing fees for accessing rent tribunals could empower unscrupulous landlords to leverage steep rent hikes against tenants, potentially leading to evictions or rent burdens beyond affordability, particularly for low-income renters.
In response, a Government spokesperson mentioned ongoing evaluation of court and tribunal fees, aligning with practices in the judicial system.
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