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Record Court Cases Against Landlords Over Rent Hikes

 ·  By Wardah Zainudin
Record Court Cases Against Landlords Over Rent Hikes - rent hike lawsuits
Record Court Cases Against Landlords Over Rent Hikes

Record numbers of landlords are now facing court over rent rises, a trend linked to the Renters’ Rights Act that took effect in May.

Rent disputes surge after new renters’ rights law

Property panels recorded 166 market‑rent decisions in July, almost four times the 44 rulings issued for the same month last year. The monthly average for the 12‑month period ending May 2026 was 42 decisions, climbing to 109 in May and 129 in June.

Tenants launched roughly 60% of the July applications, with the remainder filed before the legislation took hold.

Tenants are increasingly confident.

The legislation removed the Section 21 “no‑fault” eviction notice and altered the financial risk for challengers. If a panel upholds a landlord’s request, the tenant now pays the higher rent from the decision date, rather than the earlier application date. This change eliminates the back‑dating of rent liabilities that once discouraged disputes.

Paul Rooke, partner at Mayo Wynne Baxter, said the data “is a clear indication that the Renters’ Rights Act has shifted the balance of power towards tenants.” He added that removing the threat of retaliatory evictions and the risk of backdated rent “reduces the downside for tenants who wish to contest rent increases.” Rooke warned landlords that any increase must be backed by solid market evidence, not just cost assumptions.

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The average time from filing to decision fell to 80 days in July, down from 113 days in May and 172 days in April. The Ministry of Justice plans to recruit over 1,000 judges and panel members each year, flagging property disputes as a priority.

If the current trajectory holds, tribunals could see their caseload double within a year, stretching resources that are already stretched thin.

They may need to adapt their rent‑review processes to avoid frequent challenges. The shift also suggests tenants are becoming more confident in using the system that was once theoretical.

David Fell, analyst at Hamptons, noted that it “has upped the panel’s profile” and that “as awareness grows, we will continue to see these numbers increase.”

Kristine Ng, partner at Morr & Co, observed that the surge is “not particularly surprising” given the owners’ attempts to align rents with market conditions while tenants face affordability pressures. She emphasized that they focus on market rent, not merely a landlord’s cost increases, and that evidence of comparable local lettings is now essential.

The recruitment drive highlights the pressure on the system, which already handles service‑charge disputes, lease extensions and rent‑repayment orders alongside market‑rent challenges.

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