Steve Richmond, General Manager of proptech company Reapit, has raised concerns that the Renters’ Rights Bill (RRB), expected to become law in spring 2024, will lead to a significant surge in rent rise challenges, straining an already overwhelmed tribunal system. Under the new bill, Section 13 will be the sole mechanism landlords can use to increase rents, limiting these changes to once a year. Tenants will have the right to challenge any rent hikes through the tribunal process, which Richmond believes could result in millions of new cases each year.

Reapit’s research shows that the number of fair or market rent cases brought before England’s Residential Property Tribunals has already risen by nearly 89% over the past four years, even before the RRB has been implemented. Richmond warned that this trend will likely accelerate once the law changes, potentially creating delays in an already strained court system that is undergoing a problematic digitisation process.

Richmond called for more investment and reform to expand the court’s capacity, emphasizing that without adequate funding, the system could become overwhelmed. He noted that no impact assessment has been published by the government, making it unclear whether the courts and tribunals will be able to handle the expected influx of cases.

This situation could have broader implications for both landlords and tenants. Richmond pointed out that if landlords lose confidence in the tribunal system’s ability to manage rent appeals and evictions efficiently, they may choose to exit the rental sector. This, in turn, could lead to a decline in available homes in the Private Rented Sector (PRS) at a time when more rental properties are urgently needed. He also warned of the potential drop in tenant satisfaction if delays and uncertainty persist due to the tribunal backlog.