A tenant’s challenge to a £40 monthly rent increase has become one of the first published tests of the rent-setting rules introduced under the Renters’ Rights Act.
The dispute concerned a modern three-bedroom semi-detached property in Salford, where the landlord proposed increasing the monthly rent from £1,495 to £1,535.
A rent-increase notice was served on 22 May 2026, three weeks after the new tenancy reforms took effect. The tenant referred the proposal to the First-tier Tribunal four days later.
The tribunal concluded that the property’s open-market rent was £1,550 – £15 more than the landlord had requested. However, the Act prevents tribunals from setting a rent above the figure proposed by the landlord, meaning the increase was limited to £1,535.
EVIDENCE FALLS SHORT ON BOTH SIDES
Neither party provided the tribunal with strong evidence supporting their assessment of the property’s rental value.
The tenant referred to a neighbouring property reportedly rented for £1,000 per month, but supplied no supporting evidence. Three other Salford properties were put forward at rents of £1,350, £1,450 and £1,550.
The landlord referred to properties available for approximately £1,550 and another property in its portfolio renting for £1,600. However, the tribunal records that no evidence of those rents was provided.
Panel members Mr N Swain MRICS and Mr P Harbottle therefore reached their valuation using the submitted documents together with their own knowledge and specialist expertise.
The decision underlines the importance of agents and landlords providing properly evidenced comparables covering location, property type, size and condition when defending a rent increase.
HARDSHIP APPLICATION REJECTED
The tenant also asked for the increase to be postponed on the grounds of undue hardship.
The panel was not satisfied that an additional £40 per month would cause undue hardship and declined to delay its introduction. The new rent is due to take effect on 30 August 2026.
Under the revised rules, landlords must use Form 4A, provide at least two months’ notice and cannot increase the rent more than once a year. Tenants may challenge a proposed increase they believe exceeds the open-market rent. Government guidance confirms that tribunals cannot award more than the landlord proposed.
COST AND CAPACITY QUESTIONS
The case also raises questions about the resources required to determine comparatively small disputes. The tenant’s application cost £47, while the hearing fee for a rent challenge is waived under the Property Chamber’s revised fee structure.
The decision, Ndifor v Wise Living – reference MAN/00BR/MRA/2026/0009 – was issued on 10 July, around six weeks after the application. Published residential property rulings can be searched through the official tribunal decisions service.
