With the price of essentials skyrocketing in the face of an ongoing cost of living crisis, the dream of owning a home seems increasingly out of reach for many individuals. In such circumstances, renting provides a more flexible option, offering certain rights and protections, especially when it comes to the rent you pay your landlord. If you find yourself facing a potential rent increase, it is essential to know the proper procedures and processes involved, and whether negotiation is possible. Read on to learn more about your rights as a tenant.
When can a landlord increase rent?
For periodic tenancies, which are paid on a rolling week-by-week or month-by-month basis, landlords cannot raise the rent more than once a year without the tenant’s agreement.
For fixed-term tenancies, where the rent is paid for a predetermined duration, such as a year, the landlord can only increase the rent if the tenant agrees. If no agreement is reached, the rent can only be increased once the fixed term comes to an end.
Additionally, there are specific steps landlords must follow before raising the rent. If any rent increases are stipulated in the tenancy agreement, the outlined procedure must be adhered to. In the absence of such a provision, landlords can take the following routes:
- Renew the tenancy agreement at the end of the fixed term, but with an increased rent.
- Agree to a rent increase with the tenant and produce a written record of the agreement signed by both parties.
- Utilize a ‘Landlord’s Notice Proposing a New Rent’ form, which raises the rent after the fixed term concludes.
For tenants paying rent weekly or monthly, landlords must provide one month’s notice before implementing the price increase. However, if the rent is paid yearly, the notice period extends to six months.
How much can a landlord increase rent?
There is no specific limit on the amount by which a private landlord can raise the rent. The government mandates that rent increases must be deemed ‘fair and realistic.’ While the definition of fairness may be open to interpretation, most people tend to gauge the proposed price against the average rent in the area to determine its reasonableness.
What if you disagree with a rent increase?
Tenants have the right to negotiate with their landlords and attempt to reach a compromise that both parties find acceptable. However, if negotiations fail to yield a lower rent, tenants can appeal to a tribunal for rent complaints.
This tribunal typically consists of two or three professionals, such as solicitors or surveyors. They assess the rental costs of comparable properties in the area and evaluate what the landlord could charge if a new tenant were to rent the property. Based on their analysis, the tribunal determines whether the rent increase is fair.
It is crucial to note that tenants must continue paying their rent during this process. Failure to do so may result in rent arrears, which could lead to eviction if the landlord follows the appropriate legal procedures.
Rules for regulated tenancies
Regulated tenancies, which entail paying rent to a private landlord and commencing before January 15, 1989, have slightly different rules. In regulated tenancies, tenants pay a fair rent that is lower than the market rate. A rent officer at the Valuation Office Agency (VOA) determines this fair rent, and it represents the maximum amount the landlord can charge under the tenancy.
Either the tenant or the landlord can request a review of the rent by the VOA every two years to ensure it remains fair.
For tenants with questions or concerns about their rent or landlord, Citizens Advice offers free advice and support.