What happens when a tenant challenges their rent increase.

What happens when a tenant challenges their rent increase

From 1 May 2026, every rent increase on a private assured tenancy in England must go through the Section 13 process. Landlords complete Form 4A, give at least two months' written notice, and may only increase rent once in any twelve-month period. The process is clear and structured. What is less well understood among landlords is what happens when a tenant uses their right to refer that notice to the First-tier Tribunal, and what the practical consequences are on both sides.

The tenant's right and how they use it

The gov.uk guide to the Renters' Rights Act is explicit: if a tenant considers the proposed rent increase to be above the open market rate, they can refer the notice to the First-tier Tribunal before the proposed start date specified in the notice. The application is made using form MR1 and carries a fee of £47. The application must be submitted before the start date in the notice. If the tenant misses that deadline, the new rent takes effect automatically.

The important point for landlords to understand is that a referral is not a refusal. The tenant is not refusing to pay an increased rent. They are asking the tribunal to determine what the correct market rent is for the property. The tribunal will then make that determination, which may be the same as the landlord proposed, or it may be lower. There is no scenario in which the tribunal sets a rent higher than the landlord's original notice figure.

What happens to the rent while the tribunal considers the case

Once a referral is made, the proposed increase is suspended and the current rent continues to be paid until the tribunal reaches a decision. When and from what date the new rent applies depends on the timing of the tribunal's decision relative to the original proposed start date in the landlord's notice.

If the tribunal reaches its decision before the proposed start date in the notice, the new rent takes effect from that original proposed date, meaning there is no delay to the landlord's income at all. If the tribunal's decision comes after the proposed start date has already passed, the new rent takes effect from the next rent payment date after the tribunal's decision. In that scenario, the period during which the tribunal was considering the case does not generate arrears: the tenant is not required to pay the higher rent retrospectively for the time that has elapsed.

For tenancies that are less than six months old at the point of referral, the tribunal sets its own start date for the new rent, which cannot be earlier than the date of the tenant's application.

What the tribunal considers

The tribunal assesses the open market rent for the property. This means looking at what comparable properties in the same area are currently letting for, taking into account the size, location, condition, and features of the property under consideration. Evidence that both parties can submit is therefore relevant: current asking rents for similar properties locally, recently agreed rents, and any factors specific to the property that affect its market value.

Landlords who have based their proposed increase on genuine comparable market evidence are in a sound position if a referral is made. The tribunal is assessing whether the proposed rent reflects the market. A landlord who can demonstrate that it does is likely to see their proposed figure upheld. A landlord who cannot demonstrate that grounding is in a weaker position.

The practical implication for how landlords approach rent reviews

The existence of the tribunal route does not mean that every Section 13 notice will be challenged. The majority of rent increases that reflect genuine local market conditions will not be referred, because a tenant who understands the process will recognise that an increase at or below market rate is unlikely to be reduced by the tribunal. Where referrals are most likely is where the proposed increase is significantly above what comparable properties are achieving, or where the relationship between landlord and tenant has broken down.

The straightforward protection against a successful tribunal challenge is accurate, evidence-based pricing. A proposed rent grounded in what the market will actually pay is defensible. One that is not cannot be made more defensible by the form it is served on.

Talk to our lettings team about managing rent reviews