The Government is being accused of introducing rent controls by the back door after a landlord was forced by a tribunal to charge their tenants £200 less each month.

Since the Renters' Rights Act came into force on 1 May, tenants are finding they can successfully challenge rent increases they deem to be above the market rate.

In the tribunal case, the tenant successfully challenged a £50 rent increase for rent from £1,650 per month to £1,700. 

But after listening to their arguments the judge went even further and ruled the market rent was £1,450 a month, forcing the landlord to drop it by £200. 

The housing minister, Matthew Pennycook, took to X yesterday to highlight the case as an example of how Labour is 'standing up for renters'. 

However, property experts have called it 'rent control by the back door'. 

While renters could challenge unfair rent increases prior to the Renters' Rights Act, they had to prove the rent was significantly higher than what the landlord could expect for a comparable property.

Renters were also at greater risk of being evicted were they to try their luck given that prior to the new rules, landlords could respond with a now-banned section 20 'no-fault' eviction notice. 

Landlords now need a valid reason to evict. This includes needing to sell the property or if a tenant is in more than three months of rental arrears. 

In the recent case, the Manchester tenant said they agreed to sign up to the initial £1,650 a month because they were desperate for housing when they took on the tenancy in August 2025. 

They said that the flat had basic and dated furnishings and gave examples of comparable properties within the same building and nearby developments which are advertised at between £1,400 to £1,500 per month.

They also complained of past maintenance issues, including a problem with the dishwasher, extractor fan, as well as a mouse issue. They also said the rent increase would put them in financial difficulty.

The landlord argued that the proposed rent of £1,700 a month was based on similar properties in central Manchester as well as it benefiting from being the largest in the building and situated on the top floor with lots of natural light.

The tribunal decided to side with the tenant and ruled the market rent at £1,450 a month.

When can landlords raise rents? 

Under the new rules, a rent increase must be issued with a two month written notice period if the landlord wants to raise their rent. 

It must be in line with local market rents and the landlord must issue the tenant with a document known as form 4A.

Landlords are restricted to one rent increase a year and cannot raise rents in the first 12 months of a new tenancy. 

If a tenant thinks the proposed increase is above market rate, they can challenge it at the first-tier tribunal. 

Renters can also challenge their rent, regardless of any increase, at the tribunal within six months of moving into a property. 

Tenants have to pay £47 application fee to challenge a rent increase, but the tribunal can order the landlord to reimburse it if they win.

Tenants have little to lose  

Some from across the property industry have accused the Government of introducing rent controls in all but name.

Ashley Osborne of Lexit, a service that helps analyse buy-to-let properties for landlords says of the recent case: 'The landlord asked for £50 more and the tribunal cut the rent by £200, below what both sides agreed at the start.

'The tribunal called the flat attractive and high specification. It still set the rent £200 below the rent agreed at the start of the tenancy, and £250 below the proposed rent, on its own reading of the comparables. The agreed rent is no longer the floor.'

He added: 'I warned a year ago the Renters' Rights Act was rent control by the back door. Its defenders said this wouldn't happen.

'But when a third party's view of market rent can override a rent two people freely agreed, that's rent control in substance, whatever the act calls it.'

James Blackler, managing director at mortgage broker Oakstead Finance says more renters are challenging their landlords at the tribunal because they have little to lose by doing so, and potentially hundreds of pounds a month to gain. 

He says: 'More renters will challenge rent rises, and the numbers already show it: Ministry of Justice figures put the Property Tribunal's caseload up 56 per cent on a year ago, and a £47 fee is a low bar for anyone who suspects they're being overcharged. 

'With so little to lose at the outset, even tenants who are only mildly unsure about an increase have reason to test it.'

The Government has also announced plans for HMRC's Valuation Office Agency to take over rent appeals.

The VOA will handle initial claims using rental valuation data to help speed up decisions and stop as many cases going to the tribunal. 

This could potentially make it even more straightforward for tenants to launch a challenge.  

Mark Alexander, founder at landlord forum Property118 says: 'The planned move to HMRC's Valuation Office could reduce delays, but both sides need transparent valuations and a meaningful route to challenge errors. 

'These are market-rent assessments, not a fixed percentage cap. If valuations drift away from genuine market evidence, however, landlords will understandably see rent control by the back door. 

'An unpredictable system could damage confidence in providing rental homes.'

Michelle Lawson, director at Fareham-based Lawson Financial advises landlords to ensure any repairs are up to date, to avoid giving tenants an excuse to challenge rent increases. 

She says: 'Some tenants will be unhappy with rent increases if works are outstanding so again, landlords should ensure that they are keeping on top of the property's condition if they are wanting to charge and evidence top market rent.'