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Simplified Arbitration Service - Rural Rent Review Disputes

Simplified Arbitration Service - Rural Rent Review Disputes

RICS has developed a low-cost, quick and easy arbitration procedure to help rural landlords and tenants resolve rent review disputes. The service can also be used for other rural sector disputes.

When it is time for a landlord and tenant to review the rent on a holding or tenancy, they can agree the new rental figure without having to go to arbitration. However, if the new rent has not been agreed by the date it is meant to take effect, an arbitrator (or independent expert) must be appointed.

The arbitrator will take evidence and inspect the property. He or she may also hold a hearing with the landlord, tenant and their representatives before deciding what the new rent will be. This can frequently mean that the amount of time and money parties will need to spend on the arbitration will be unclear. The process can be expensive and very slow.

The RICS Simplified Arbitration Service takes into account the fact that rural disputes need a different species of arbitration, which often requires a level of informality and conciseness that are not usually seen in commercial and construction arbitrations.

Why use the RICS Simplified Arbitration Service (SAS)?

The RICS Simplified Arbitration Service is: 

  • A much more informal and relaxed procedure for dealing with disputes compared to courts and traditional approaches to arbitration. 
  • An uncomplicated and straightforward process, which still allows both parties a reasonable opportunity to have their say. 
  • Speedy and low-priced. The parties will know how long it is going to take to get a decision, and how much they will have to pay.

Appointing an Arbitrator

Where a landlord and tenant cannot agree on the appointment of an arbitrator, either party can apply to the President of the Royal Institution of Chartered Surveyors (RICS) to make an appointment.

When appointing arbitrators, we undertake robust checks to ensure that those we appoint are:

  • suitably qualified in the subject matter which is in dispute
  • independent of the parties and have no conflicts of interest
  • knowledgeable on the law and practice of arbitration

If both parties agree to use SAS, arbitrators will sign up to a fixed timetable and costs regime, with aims to reach a decision within 28 days, at a maximum cost to each party of £2,000.

As long as parties abide by the SAS procedural rules, the arbitrator will only charge for 3 days work at £1000 per day (plus VAT). If the parties choose to have a hearing/meeting, the arbitrator may charge an additional fee up to £1000.

These costs will be shared equally by the parties, and each party will pay their own costs regardless of the outcome.

Contact the DRS team

  • RICS Dispute Resolution Service
    55 Colmore Row
    Birmingham
    B3 2AA
  • Call: +44 (0) 24 7334 3806
  • Email us