invalid rent increases

I’m lazy welfing but that’s what comes of working with housing solicitors that keep asking me complicated questions…

When a tenant is challenging the validity of a rent increase by a private landlord does it prejudice their position if they notify the change of circs to HB or UC, given that it can take several months for the issue to come before the rent tribunal?

Obvs the rent goes above the LHA once the increase is imposed so that might fetter matters.

I can’t see how it can possibly prejudice the tenant’s position in relation to the rent tribunal. All they are doing by informing UC or the LA is protecting their financial position against the possibility of running up rent arrears in the meantime or losing the case before the rent tribunal. They would obviously need to tell UC/LA the full details and presumably undertake to pay any extra HB/HCE back if successful before the rent tribunal.

Where rent is increased under the section 13 procedure, referring the increase to the Tribunal is suspensive of the effect of the increase under s13(4) Housing Act 1988. As HB/HCE can only meet a rental liability which actually exists, the proper action on receipt of this information would be to do nothing. When the Tribunal makes its decision, the rent increase can be backdated - see s14(7) - at which point it could be reported as a change in circs.

I think what your housing solicitor colleagues are concerned about is that a rent increase can proceed by agreement. There is a concern that by paying the increased rent, a tenant may be construed as having impliedly agreed to it. There is a scenario where if the DWP were to pay the increased rent to the landlord by way of an APA, the landlord might say “aha, you have agreed to pay the new rent”. Whether that would actually work is another question.

This is all probably academic though, as the rent increase is not going to be of any interest to the DWP except to the extent that the actual rent is below LHA which is very much a rarity.

Elliot Kent - 21 March 2023 04:31 PM

Those colleagues are very grateful.

Thanks Elliot