In the midst of a cost-of-living crisis, British tenants are grappling with the nightmare scenario of steep rent increases, further exacerbating financial struggles caused by soaring energy bills and escalating food prices. For many cash-strapped individuals, the dream of homeownership seems increasingly unattainable, forcing them to navigate the challenges of rented accommodation.
A recent episode of the Martin Lewis Money Show shed light on the distressing situation faced by one man whose son’s landlord proposed an astonishing 71% rent hike, setting the new monthly figure at a staggering £2,400. The landlord also sought to increase the tenant’s deposit, prompting financial expert Martin Lewis and Nadeem Kahn from the housing charity Shelter to denounce the move as ‘outrageous.’
During the show, Kahn emphasized crucial information regarding tenants’ rights when confronted with rent hikes. He clarified that landlords cannot increase the deposit mid-tenancy. Regarding rent increases, he highlighted that during the fixed term of a contract, rent can only be raised if there is a specific rent review clause in the agreement.
Once the fixed term concludes, landlords can legally increase rent, but they must provide proper legal notice. Tenants have the right to appeal such notices to a tribunal, where a fair rent based on market rates for the area will be determined. Kahn advised tenants to research local rental rates before pursuing this avenue.
Shelter provided additional insights, revealing that there is no limit on agreed rent increases for assured shorthold tenants. Although renters are not obligated to agree to a rent hike, refusal could lead to landlords attempting to terminate the tenancy, often through a section 21 notice.
Furthermore, the report clarified that expressing dissatisfaction with an increased rent does not nullify the obligation to pay the higher amount, as it legally becomes the new rental price once paid. Addressing concerns of eviction, both Kahn and Lewis reassured tenants that landlords can issue an eviction without a legal reason but are unable to do so during a fixed-term contract. Vigilance and awareness of tenant rights have become crucial in navigating the challenging landscape of the current rental market.