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ARTICLE · 28 SEPTEMBER 2026

What Is “Rack-Rent”?

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The Upper Tribunal (“UT”) clarifies the meaning of “rack-rent” and offers clarity for Rent-to-Rent superior landlords in Khiljee v Waltham Forest LBC [2026] UKUT 171 (LC)

United KingdomReal Estate and Construction
Neli Borisova
Neli Borisova

The Upper Tribunal (“UT”) clarifies the meaning of “rack-rent” and offers clarity for Rent-to-Rent superior landlords in Khiljee v Waltham Forest LBC [2026] UKUT 171 (LC)

Local Authorities may prosecute or levy substantial fines upon landlords who are found to be “a person having control” or “a person managing” an unlicensed House in Multiple Occupation (“HMO”). Moreover, the Renters’ Rights Act 2025 (“RRA”) overturned the Court of Appeal decision in Rakusen v Jepsen making a superior landlord potentially liable for a Rent Repayment Order (“RRO”) where a relevant housing offence has been committed by them. The RRA regime brings increased penalties and liability for both direct and superior landlords, which is a substantial change to the risk profile in Rent-to-Rent arrangements.

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