London tenant wins rent reduction after challenging landlord increase

Davide Martinelli successfully challenged a rent increase from a buy-to-let company in London, resulting in a monthly rent reduction of £210 ($283).

A first-tier tribunal ruled in August that Martinelli should pay £2,350 ($3,168.40) per month instead of the £2,560 ($3,451.53) previously set. The tribunal found that the rent already exceeded market value before the landlord requested an additional increase of £17.92 ($24.16) per month. This ruling saves the tenant £2,520 over a full year.

The tribunal also noted that a rent review clause in the contract, which tied future rises to inflation, became invalid under the Renters' Rights Act. This legislation makes it easier for tenants to challenge rent hikes and prohibits no-fault evictions. This case is the eighth ruling since the act took effect in May where a tribunal cut a landlord's requested rent increase. Other landlords have faced similar setbacks.

In Manchester, a tribunal ordered a landlord to reduce rent by £200 each month after they sought a £50 increase for a two-bedroom flat. The National Residential Landlords Association advised its members to perform more due diligence before proposing rent increases under the new laws.