Rent Review Arbitration

Where a review clause provides for arbitration and the parties cannot agree, either side can apply to the RICS President for the appointment of an arbitrator. The arbitrator decides on the evidence and submissions put before them, under the Arbitration Act 1996, and the award is binding with only narrow rights of appeal.

The process

  • Application to the RICS Dispute Resolution Service and appointment of an arbitrator
  • Preliminary meeting or written directions setting the timetable
  • Statements of case, comparable evidence and expert reports exchanged
  • Counter-submissions, and a hearing only where the sums justify it
  • Reasoned award, usually within weeks of the final submission

Costs risk

The arbitrator's fee and the parties' costs generally follow the event, so a poorly judged position is expensive. Calderbank offers are the standard protection: a well-pitched sealed offer made early shifts costs risk decisively onto the other side.

Arbitration or settlement

Most reviews should settle. Arbitration makes sense where the gap is wide, the evidence genuinely supports your figure, or a point of principle will affect several units in a portfolio. I give a candid view of the range before anyone applies for an appointment.

Common questions

How long does rent review arbitration take?
Typically four to nine months from appointment to award on documents only; longer where there is a hearing.
Can I appeal an arbitrator's award?
Only on limited grounds under the Arbitration Act 1996 — serious irregularity or a point of law. Disagreement with the valuation is not a ground.

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Ask anything about this topic and get an immediate answer drawn from this page. General guidance only — specific advice depends on your lease.

Talk it through

Initial advice is free — tenant side only.

Chris McGarrigle MRICS, chartered since 1989, acting for occupiers across England, Scotland, Northern Ireland and Ireland.

chris@mcgarrigle.com

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