England to get its own 'rent service' says housing minister

The government has agreed to establish a body to help decide rents in a bid to prevent over-loading the tribunal service with rent disputes.

After peers raised concerns about tribunals' ability to cope with potentially thousands of challenges to rent hikes from tenants, it looks likely to emulate Rent Service Scotland, which makes an initial decision on the appropriate rent to charge, and the tenant can then refer this to the tribunal if they don’t agree.

Compelling

Speaking in the House of Lords debate on the Renters’ Rights Bill, Housing Minister, Baroness Taylor of Stevenage, said it had reviewed the experience of similar reforms in Scotland. “We have concluded that there is a compelling case for the use of an alternative body or mechanism to make initial rent determinations. This would ensure the long-term sustainability of the system, relieving pressure on the tribunal, and has the potential to deliver longer-term savings, contributing to more efficient state delivery.”

She said it was important that “some judicial function” would continue to be necessary in relation to a small proportion of challenges, to ensure landlords and tenants had appropriate access to justice. “We therefore intend to establish such an alternative body or mechanism as quickly as possible, subject to completing a full viability assessment of this, and we will confirm final details of this in due course.”

Overwhelmed

Taylor added that a “proportionate safeguard” would be put in to use where it became clear that the tribunal system was on course to be overwhelmed.

A new power would enable the government to make regulations to enable backdating rent increases following a tribunal ruling.

“The Secretary of State will specify by regulation the date from which the new rent should be paid, provided that this is no earlier than the date first proposed by the landlord in the Section 13 notice given by the landlord.”

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