But most people in England are in assured shorthold tenancies of a fixed term, usually six or 12 months, or with no end date (referred to as ‘rolling’). Most renters in Wales have standard occupation contracts.
In those circumstances, your landlord can propose a rent increase at any time. This would involve them giving you a new fixed term tenancy, with higher rent included in the agreement.
However, without your agreement, they can’t enforce a rent increase until the term of your tenancy ends, or unless there is a rent review clause in your contract. They could also go through the section 13 process to increase your rent. In Wales, this is a section 123 notice.
The notice you’re entitled to depends on the length of your tenancy: for example, if it’s for a fixed term of a year, your landlord must give you six months’ notice. If you have a rolling tenancy, it can generally only go up once a year with at least a month’s notice or two month’s notice if you are in Wales. Your notice period for rent increases will often be the same as the notice you must give if you decide to end the tenancy agreement.
In Scotland, you might have an assured shorthold tenancy or a private residential tenancy. The notice period landlords must give is longer at three months.
Under the latter, your landlord can up your rent at any point during the first year of your tenancy. After that it can only be increased every 12 months, using the correct rent increase form.
In an assured shorthold tenancy, and if there was no agreement for rent increases when you first signed your tenancy agreement, your landlord has to give you an AT2 form if they want to increase your payments. This is similar to a section 13 notice and can only happen once a year.
Scotland also uses Rent Pressure Zones, which limits the amount rent can increase in some areas.
When giving you this notice in writing, your landlord should also explain your rights to challenge the increase.
Be wary of landlords or letting agents trying to force or coerce you into agreeing to a rent increase when you’re not legally obliged to. If you’re worried your rights as a tenant are being breached, speak to a housing adviser as soon as possible.
Rent review clauses
Your landlord can’t increase your rent during a fixed term without your agreement, unless a rent review clause was part of the contract.
This clause will set out when and how your rent is assessed and changed. It might state a general time for your rent to be changed and the notice you’ll receive, or it might explain how the landlord will decide how much to increase your rent by.
Section 13 rent increases
A section 13 notice is the process a landlord has to follow if they want to increase rent. They can only do this once every 12 months.
Your landlord can give you a section 13 notice before the end of your fixed term tenancy but any associated rent increase will only apply once that fixed term has ended (and after the notice period you’re entitled to has passed).
They can’t issue a section 13 notice during a fixed term agreement if there is a rent review clause in your contract.
AT2 forms and section 123 notices function in a similar way, but seek advice if you’re not sure how they apply in your region.
How much can my landlord increase my rent by?
There is no strict cap on rent increases in England and Wales, but the government says landlords must only propose “fair and realistic” figures.
This usually means the increase should be in line with local market rates and not significantly more than other similar properties charge in the area.
If your landlord proposes a rent increase and you are unhappy with it but pay it anyway, that could be interpreted as agreement with the rise. This will make it much more difficult for you to go through the challenging process.
In Scotland, the most your landlord can increase rent is 12% – but in most cases a hike as steep as this wouldn’t be considered fair if you challenged it legally.
Use the Scottish Government’s rent increase calculator to get an idea of how much your landlord could increase your rent.
How to negotiate a rent increase
If your landlord wants to increase rent, propose a compromise between what you currently pay and the new rate they want you to pay. Some landlords will prefer to hold onto a tenant by opting for the slightly lower increase rather than going through the hassle of moving someone new in.
But make sure you only suggest a figure you know you can afford, and do your research on rent prices for similar properties nearby. It will be easier to negotiate with your landlord if you can demonstrate that market rates are lower than what they want you to pay.
If you receive housing benefit or the housing element of universal credit, don’t forget to check if you can claim extra money to help with a rent increase. Make sure you arrange this before the increase comes into force.
Challenging a rent increase
If your landlord tries to enforce a rent increase but you disagree with the amount or don’t believe the increase is legally sound, you can challenge it within 21 days of being notified.
You should speak to your landlord first. But if they’re not willing to compromise, you should begin collecting evidence to support your case. That could include recent rental prices for similar properties in your area, information about the condition of the home you rent, and evidence of any issues that might affect the property’s value.
You can then apply to a tribunal via a form, either online or by post, alongside your supporting evidence.
You and your landlord will then go to a hearing, where the tribunal will consider both sides and decide whether the rent increase is fair.
If they agree with your challenge, they could set a lower rent or deny the increase altogether. If they side with your landlord, you will have to pay the proposed increase or find somewhere else to live.
Be aware, the tribunal could set the rent at a higher rate than the landlord originally proposed. This has been criticised by pro-renter groups who have called for rent increases to consider tenants’ salaries rather than just prices in the local area.
Support organisations were concerned about the rights of private tenants when heading into the recent election. Speaking ahead of the general election result, StepChange’s Simon Trevethick told the Big Issue: “Our asks on housing are clear and simple. We want to see the next government commit to a Tenancy Support Duty to support tenants with signposting to support and to help them get back on their feet, as people fall into debt or financial difficulty often through no fault of their own.
“We also want to see all parties commit to ending no fault evictions to prevent people losing their home unnecessarily.”
If you don’t pay your rent increase
If you don’t reach an agreed compromise with your landlord and don’t successfully challenge the increase, non-payment of the new rent rate will push you into rent arrears and can result in eviction.
Speak to a local housing adviser if you can’t pay newly increased rent or feel you’re at risk of eviction.
“Your landlord can’t serve you with an eviction notice if it’s less than four months since the tenancy started,” Trevethick added, “if you live in a house in multiple occupation [HMO] without a licence, or if your deposit isn’t protected by the deposit protection scheme.
“Your landlord must give you two months’ notice to vacate the property if they serve you with a Section 21 or Section 8 eviction notice.”
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