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The Government has announced plans to change the way challenges to rent increases are dealt with in England, with HMRC’s Valuation Office Agency (VOA) set to take over responsibility for initial rent determinations from the First-tier Tribunal.
Under the proposed changes, where a tenant challenges a proposed rent increase, the VOA will initially determine the appropriate rent rather than the case going directly to the First-tier Tribunal.
Housing Minister Matthew Pennycook said the change is intended to ensure that rent challenges are dealt with more quickly, while also reducing pressure on the tribunal system.
The Government says the new dedicated service should provide landlords and tenants with faster decisions and help free up tribunal capacity.
What does this mean for landlords now?
For the time being, there is no change to the current process. Tenants wishing to challenge a proposed rent increase must still apply to the First-tier Tribunal.
The transfer to the Valuation Office will require further legislation and implementation before the new system becomes operational.
According to the National Residential Landlords Association (NRLA), the new system is expected to take around two years to introduce, although the Government has not yet confirmed when the implementation process will begin.
Landlords should therefore continue to follow the existing rules and procedures for rent increases until the Government confirms that the new VOA system has come into force.
We will provide further updates as more details and an implementation timetable are announced.