New Research Finds Renters Save Over £1,000 Per Year by Challenging Rent Increases

Renters who challenge their landlord’s rent increases through the tribunal system are on average £1,140 a year better off, according to new research published today by anti-poverty charity Z2K.

The report, based on analysis of tribunal decision across England, finds that 71% of renters who challenge a proposed rent increase successfully secure a lower rent than that set by their landlord. Despite this, just over 1,000 cases have been dealt with in the last two years, compared to the more than four million households currently in the private rented sector.

The findings highlight a stark gap between the effectiveness of the tribunal system and its use. Renters have historically been deterred from challenging increases due to justified fears of retaliatory evictions, low awareness of their rights, and the risk of the tribunal setting an even higher rent than that proposed by the landlord.

The research also shows that poor property conditions are widespread across the private rented sector and play a decisive role in tribunal outcomes. In 77% of cases, rents were reduced due to issues such as damp, mould, disrepair or poor energy efficiency, with an average deduction equivalent to £2,160 a year. 

Samuel Thomas, senior policy adviser at the anti-poverty charity Z2K, said:

“The Renters’ Rights Act makes welcome changes to how renters can challenge unfair rent increases. Z2K’s new research shows that when renters are able to make use of these protections, the benefits can be significant, putting hundreds of pounds a year back into household budgets and making homes more secure.

We are calling on the government to give clear and consistent backing to these reforms, and to ensure renters are supported and confident in using their new rights to challenge unreasonable increases.”

Clara Collingwood, Director at the Renters’ Reform Coalition, said:

"The fact that rent tribunals, which are mandated to set a 'market rent', so often award lower rents to tenants shows how unrealistic rent demands are. For years landlords have relied on the implicit threat of eviction to push tenants to accept numbers plucked from thin air. While the tribunal system has its flaws, it will become much more important once section 21 is abolished and renters have more security in their homes. Every tenant who is faced with an unfair rent hike should challenge it if they can. "Ideally however, renters wouldn't need to go to a tribunal to challenge unfair rent hikes - the simplest way to give all tenants security from economic evictions would be to cap on in-tenancy rent increases so rent can't rise faster than wage growth or inflation."

The report comes at a pivotal moment, as the Renters’ Rights Act introduces major reforms to the private rented sector, coming into force today. The abolition of section 21 ‘no-fault’ evictions and changes to rent challenge rules are expected to make tribunals a central safeguard for renters facing unaffordable increases. Since the COVID-19 pandemic, private renters’ annual housing costs have gone up by £4,000 a year.

However, Z2K warns the £47 tribunal fee and the possibility of reintroducing the practice of backdating rent increases, risk restraining the Act’s positive impact just as demand for rent challenges is likely to grow.

The report calls for further reform to protect renters from unscrupulous landlords, and for the gov makes good on the promises of the Renters’ Rights. Recommendations include improving awareness of rights, preventing widespread rent increases through proactive enforcement, strengthening protections against hardship, and ensuring property conditions are consistently assessed.

About Z2K (Zacchaeus 2000 Trust) 

Z2K is an anti-poverty charity working to end UK poverty and promote social justice for people surviving on low incomes and through high costs. It provides frontline advice and representation to people navigating the benefits and housing systems, while using evidence from its casework to influence policy and drive systemic change.

Media enquiries: communications@z2k.org

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