Landlords don’t enjoy asking for them, and tenants aren’t thrilled to hear one is on the way. Yes, we’re discussing rent increases today. We’ll look at how much landlords can raise the rent by and give you an idea of what a typical rent rise in the UK looks like. Let’s get started.
When may a landlord request a rent increase?
Before we get into how much a landlord can raise your rent, we must first consider when they can request an increase and how much notice they must give. This seemingly simple question has two distinct responses, depending on the type of tenancy you now hold: periodic or fixed-term. The government defines the ‘when’ question as follows.
For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement.
For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree. If you do not agree, the rent can only be increased when the fixed term ends.
How much notice does a landlord have to give?
The vast majority of assured shorthold tenancies will begin as fixed-term arrangements, although some may evolve into periodic tenancies. It’s critical to understand the sort of tenancy you currently have.
Landlords cannot demand a rent increase during a fixed-term tenancy unless your tenancy agreement includes a rent review clause. Without a rent review clause in your tenancy agreement, landlords cannot demand a rent rise during a fixed-term tenancy. If one is in place, your landlord has the ability to raise your rent during the lease. It must, however, indicate exactly how and when rental increases will occur.
On a 12-month fixed-term tenancy, you should expect to receive six months’ notice if there is no rent review clause. The landlord must offer a minimum of one month’s notice to individuals on a periodic tenancy.
Rent rises in the United Kingdom
Private rental prices paid by tenants in the United Kingdom increased by 2.4 percent in the year leading up to March 2022, according to the Office for National Statistics:
Can tenants reject a rent increase?
Yes. If a tenant believes that the increase proposed by their landlord is not fair and realistic, they can oppose it.
Having said that, it’s usually a good idea to consult with your landlord before going down the legal route of requesting a tribunal. Many landlords will be willing to listen and reach an agreement with you, especially if you are considered a “good tenant.” If you are unable to reach an agreement, you should file a tribunal application.
Keep in mind that you must continue to pay your current rent in the interim. Failure to make your rental payments may place you in arrears, which your landlord may use against you and may eventually result in you being evicted if they follow the proper procedure.
Citizens Advice and Shelter have thorough guidelines to the process if you want to challenge a rental increase. If you’re interested, we also have a piece on free legal advice while renting.
Give us a call today if you’re looking to rent in or around the capital. Our courteous lettings experts will assist you in finding the ideal home and ensuring that your relocation goes as smoothly as possible.