New data reveals that 80% of recorded rent appeals were taking more than 10 weeks to decide before the implementation of the Renters’ Rights Act.

Real Estate:UK says the findings cast serious doubts on the ability of the tribunal system to be able to deal effectively with the additional burdens placed on it, now that every private renter is able to challenge a proposed rent increase from their landlord which is above local market rates.

The property group made Freedom of Information Act requests to the five tribunal property chambers, asking for the number of rent appeal cases brought by tenants each year over the past three full years, and the average time to consider, process, and rule on these appeals. Four responded to the request although one said it did not hold the information.

Total

Real Estate:UK found 2,944 cases were brought across the three tribunals, while only 21% of appeals were currently being decided within 10 weeks before the Act took effect.

A Freedom of Information request last year by property lawyer David Smith revealed that the government had no idea how the Act will impact the tribunal that considers rent appeal cases, as the Ministry of Justice doesn’t hold data on the average time it takes for the tribunal to consider, process and rule upon rent increase appeals.

Backdating

Alongside its commitment to introducing backdating where the tribunal is ‘overwhelmed’, the government has vowed to conduct a viability assessment of an alternative or filtering body to make initial rent determinations before the tribunal, to relieve pressure on the Tribunal. No further details have been released and nor has the government published its Justice Impact Test which assesses the Act’s impact on the process, according to Kate Butler (pictured) assistant director at Real Estate:UK.

She says its findings are deeply concerning. “Expanding the use of the s13 process to all tenancies will dramatically increase the number of appeals the tribunal hears, and there is no evidence to suggest that it will be able to effectively deal with this, or that the government will be able to undertake its commitment to measure ‘overwhelm’,” adds Butler. “This not only undermines the attractiveness of the PRS for new investors, but it will negatively impact existing landlords and incentivise their exit.”

Minister

Justice Minister Sarah Sackman has previously insisted that the system can cope. She says the government has recruited additional administrative staff, set up a centralised operational hub, and updated operational processes to improve efficiency. “We are also ensuring the availability of suitable estates capacity for hearings and enhancing our technology systems to support the increased workload,” explains Sackman. “We expect these measures to be in place in time for implementation of the Renters’ Rights Act.”

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