Recent tribunal rulings highlight the importance of actual rental transactions over advertised asking rents when landlords seek to justify rent increases. In a London case involving Get Living London, the First-tier Tribunal upheld a proposed rent rise from £3,102 to £3,180 per month for a two-bedroom flat. The tenant’s argument rested on lower advertised rents, but the tribunal gave greater credence to evidence of completed lettings at the higher level.
For investors, this outcome emphasises the value of robust data on achieved rents rather than relying solely on advertised prices, which can be misleading or out of date. Our analysis of tribunal decisions over the past year shows a consistent pattern: tribunals favour concrete evidence of market transactions when assessing rent fairness. This means landlords should document lettings carefully, especially when seeking above-inflation increases.
London’s rental market remains tight, with demand sustaining rents at or above advertised levels in many areas. The tribunal’s decision reflects this reality rather than theoretical asking prices. For investors, focusing on actual rental performance data can strengthen their position in disputes and support more accurate rent setting.
In short, evidence of achieved rents is becoming the benchmark for rent reviews and tribunal challenges. Landlords and investors ignoring this risk weaker cases and potential losses on rent recovery. Collecting and presenting clear data on completed lettings should be a standard practice in London’s competitive rental market.
Source: Property118
