Guidance

Taking part in an application to the residential property tribunal about a rent issue

Updated 4 September 2024

About this guide

This guide helps you understand what happens when taking part in an application to the First-tier Tribunal Property Chamber (Residential Property) about a rent dispute or issue.

The guidance explains:

• the 2 types of rent case
• who does what in the tribunal
• what happens once the tribunal receives an application
• what happens at a hearing
• how the rent will be decided
• how to appeal if you disagree

Get help or guidance

For more information and links to application forms, see the guide about how to solve a residential property dispute.

If there is anything about the process that you do not understand, contact the regional tribunal office. They can speak to you about the procedures relating to the application but they cannot give legal advice or interpret the tribunal’s decision.

The tribunal’s procedures are governed by statutory rules called the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013.

Tribunal decisions are published on GOV.UK, unless a party makes a written request with reasons for why this should not be done.

For advice on how to present your case, or if you need to understand more about the law, you may wish to consult a solicitor or Citizens Advice.

Citizens Advice

A charity and network of local charities, offering free, confidential advice online, over the phone, and in person. They offer advice on housing issues, such as tenants’ rights and responsibilities.

www.citizensadvice.org.uk

Rent case types

There are 2 types of rent cases, depending on the tenancy involved.

Fair rent cases

This is when a rent officer from the Valuation Office Agency fixes a fair rent for a property under the Rent Act 1977.

Either the landlord or the tenant can lodge an objection with the rent officer, who then refers the matter to the tribunal.

Market rent cases

Market rent cases are referred to the tribunal in one of 4 ways.

1. In an assured, assured shorthold or periodic tenancy, a landlord must serve notice on their tenant that they will increase the rent from a date stated in the notice (section 13 of the Housing Act 1998). The tenant can apply to the tribunal for assessment. The tribunal must receive the application for assessment before the date the rent is due to increase.
2. In an assured shorthold tenancy, if the tenant is dissatisfied with the rent they are paying, they can apply to the tribunal. They must do this within the first 6 months of the tenancy agreement (section 22 of the Housing Act 1988). If the tribunal agrees the rent is too high, it will set a new market-based rent for that tenancy.
3. When a fixed term assured or assured shorthold tenancy ends, the landlord or tenant can propose new terms for the statutory periodic tenancy that will automatically start (section 6 of the Housing Act 1988). Either the landlord or tenant can apply to the tribunal to decide the new terms, including rent.
4. Where either the tenant or the landlord has applied to the tribunal when a long lease at a low rent has expired (under the Local Government and Housing Act 1989).

About the tribunal

Tribunal members are appointed by the Lord Chancellor. There are 2 types of member:

1. The chair, who is usually a lawyer or surveyor, is responsible for the case and writes the reasons for the tribunal’s decision.
2. Other members who may be lawyers, surveyors, other professional people or non-professionals.

When a tribunal is set up to consider the case, there will usually be 2 or 3 members including the chair.

Case officers

Case officers are the administrative staff who manage the process and deal with correspondence. It is the case officer who will register the case and deal with the paperwork and correspondence until you have received the final decision.

Case officers can speak to you about the procedures relating to the application but they cannot give legal advice or interpret the tribunal’s decision.

Apply to the tribunal

You must complete an application form in almost all cases. You can:

• find the appropriate form online
• contact your region’s tribunal office to ask for a form to be sent to you

Once your application is received at the tribunal office, it will be checked by a case officer and you will be sent an acknowledgement.

A copy will also be sent to:

• the other party in the case (sometimes called the ‘respondent’)
• anyone the tribunal thinks is likely to be significantly affected by the application
• anyone else the tribunal think should receive a copy

Unless either you or the respondent asks for a hearing, the tribunal will arrange for the matter to be dealt with based on submitted documents and other evidence the parties are invited to provide. This is referred to as a ‘paper determination’.

The hearing

If a hearing goes ahead, it will be held in person. In London, hearings are held at the London tribunal office. In other regions, the hearing can take place in a hearing room at the regional office but will often take place at a venue as near to the property as possible. In special cases the hearing venue may be the property itself.

You can speak for yourself or through a representative. This can be a legal professional, such as a solicitor, or it could be a friend or family member. Each party will be able to put relevant questions to the other party.

The members of the tribunal will try to put people at ease and will also ask some questions. If anything is unclear during the hearing, you can ask the tribunal for clarification.

Inspections

The tribunal may inspect the property if you or the other party requests it, or if the tribunal considers it necessary. An inspection will usually be on the day of the hearing.

If there is a dispute of fact, or the tribunal needs to consider the physical condition of a property, an inspection may be necessary. If this happens, you will be told the date and time they want to carry out the inspection.

The tribunal will only inspect inside a property if the tenant has given their permission. A landlord may be allowed to join the tribunal at the inspection but again only if the tenant has given permission.

Either party can draw attention to any physical aspect of the property or its surroundings but will not be allowed to say anything further. For example, a damp patch on a wall can be pointed out but any suggestion as to why it appeared should not be given. Arguments and evidence (sometimes called ‘representations’) will either have been made in writing already or will be made at the hearing, if one has been requested.

If the members of the tribunal are unable to gain access at the appointed time, they may decide to make another appointment or they may decide that they have sufficient information to make a decision.

How the rent will be decided

How the rent will be decided depends on the type of rent case. Other costs and considerations will also be considered.

Market rent

The tribunal will look at the market or rents of similar properties in the local area. Both parties can provide evidence of comparable rents.

The tribunal will ignore any improvements to the property made by the tenant to avoid inflating the rent.

Fair rent

The tribunal will first look at the market rent for the property, ignoring any improvements to the property by the tenant. It will then consider whether there is a shortage of similar properties in the area. If there is a shortage, a deduction will be made to reflect this.

Where a fair rent is already registered and an application is made to increase the rent, there’s a limit on any increase. This is sometimes called the ‘rent cap’ or the ‘capped rent’.

The rent cap is calculated using a formula from the Rent Acts (Maximum Fair Rent) Order 1999. This allows only for an increase in a fair rent linked to the retail prices index (RPI).

Where a landlord has improved the property in a way that would increase the rent by at least 15%, the cap will not apply.

Council tax

This is normally paid by the tenant directly and is not considered in the assessment. However, if the property is a flat in a house in multiple occupation, the landlord will be responsible for the council tax and part of that will be included in the rent.

Service charges

These are sometimes charged by landlords as part of, or in addition to, the rent. They include charges for things like gardening, cleaning or electricity in common areas of the building the property is in.

In fair rent cases, the tribunal will include the value of such services to the tenant in the rent. However, some tenancy agreements say that service charges may be changed from time to time (for example, every 12 months) as the costs of providing the services change. If that’s the case, the rent officer or the tribunal may register the fair rent as ‘variable’. The landlord will then be able to increase the service charge before the next application for a new fair rent without asking the rent officer.

In market rent cases, where the tenancy agreement includes a variable service charge, the rent decided by the tribunal will not include those charges. So, the tenant must pay the service charge in addition to the rent decided by the tribunal.

In all cases (fair rent or market rent) where there is a variable service charge, you can apply to the tribunal to assess the reasonableness of the charges at any time under the Landlord and Tenant Act 1985. In fair rent cases, this only applies where the rent has been registered as variable.

Supporting people charges

‘Supporting people’ is a scheme run by local councils to help fund services for vulnerable people. If the tenancy includes supporting people charges, the tenant must usually pay these in addition to the rent and service charges. However, the tribunal may decide that some or all these charges should be included within the service charge.

Shared ownership

Where a tenant has bought a share of the property, the rent will only be payable for the landlord’s share.

The decision

The tribunal will make its decision after the hearing and send it to you and the other party in writing as soon as possible and usually within 6 weeks. You can ask them to also provide the reasons for the decision.

If the tribunal realises that an administrative mistake has been made (such as misspelling a name or address), then it can issue a correction certificate.

Appeal the decision

If you do not agree with the decision, you have a right of appeal to the Upper Tribunal (Lands Chamber) on a point of law.

You must ask the tribunal for permission to appeal within 28 days of the hearing’s decision.