With the cost of living increasing and private rents reaching historic highs, many individuals across the UK find themselves with barely a penny left after covering their basic needs.
The surge in private rent costs since the pandemic has deepened the nation’s housing crisis, raising the pressing question: what can tenants do if their landlord decides to raise the rent further?
Can My Landlord Increase My Rent?
Yes, landlords can increase rent, but there are specific protocols they must follow, which vary depending on the type of tenancy and the region of the UK.
Check Your Tenancy Agreement
Reviewing your tenancy agreement is crucial. Most UK private renters have assured shorthold tenancies, though you might have a different type, such as a licence or lodger agreement. Understanding your agreement ensures you know your rights.
Frequency of Rent Increases
The frequency of permissible rent increases depends on your tenancy type. Generally, most renters in England have assured shorthold tenancies of either fixed terms (six or 12 months) or rolling terms. In Wales, standard occupation contracts are common.
Landlords can propose a rent increase at any time, typically by offering a new fixed term tenancy with the increased rent. However, without tenant agreement, they cannot enforce an increase until the tenancy term ends, unless there is a rent review clause in the contract. They might also use the section 13 process, or section 123 in Wales, to propose an increase.
In Scotland, rent increases have different stipulations depending on whether you have an assured shorthold tenancy or a private residential tenancy. Rent can only be increased once a year after the first year of tenancy, following the correct procedures.
Rent Review Clauses
A rent review clause in your contract allows landlords to increase rent during a fixed term, detailing how and when this can occur.
Section 13 Rent Increases
A section 13 notice is used by landlords to increase rent once every 12 months, applicable after the fixed term ends. Similar notices (AT2 forms and section 123 notices) are used in Scotland and Wales, respectively.
Limitations on Rent Increases
There are no strict caps on rent increases in England and Wales, but they must be “fair and realistic,” generally aligning with local market rates. In Scotland, the increase is capped at 12%, though such a high rise would likely be contested.
Negotiating a Rent Increase
If faced with a rent increase, negotiating a compromise between your current and proposed rent may be beneficial. Ensure your counteroffer is affordable and supported by local market research.
Challenging a Rent Increase
Tenants can challenge an unjustified rent increase within 21 days of notification. Evidence supporting your case, such as comparable rental prices and property conditions, is essential. A tribunal will then decide on the fairness of the proposed increase.
Consequences of Not Paying Increased Rent
Failure to agree on or successfully challenge a rent increase can lead to arrears and potential eviction. Immediate consultation with a housing adviser is recommended if you are unable to pay the increased rent or fear eviction.
Tenant rights and protections remain a significant issue, highlighted during the recent election. Simon Trevethick of StepChange emphasized the need for a Tenancy Support Duty and the end of no-fault evictions to protect renters from losing their homes unnecessarily.
For those struggling with rent hikes or eviction threats, seeking advice and support from local housing advisers and organizations is crucial.