To summarise the below information:
– Your tenancy type will affect a landlords ability to increase rent
– The amount of notice that needs to be given is also affected by the tenancy type
– Tenants have the right to refuse an uplift in rent
Does the type of tenancy affect a Landlord’s ability to increase rent?
Yes it does, and there are two main types of tenancies. These are fixed-term tenancies, which last for a predetermined amount of time, and Statutory Periodic tenancies, sometimes known as periodic tenancies since they occur on a weekly or monthly basis.
As stated by the Government “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.” and “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 can a landlord increase rent per year?
There is no set cap on how much a landlord can increase rent by. Landlords are able to increase rent as long as it is considered reasonable. Rent hikes must, according to government regulations, be reasonable and fair, which essentially means they must follow regional averages.
For example, if a tenant is paying £1,000 a month to rent a two-bedroom semi and similar houses in the area are going for £1,200, your landlord is allowed to request a £200 monthly price increase.
However, if the same landlord suggested a new £1,800 rental fee, that increase wouldn’t meet the standard of “fair and realistic,” and the tenant would be justified in objecting to such a demand.
Notice of rent increases
If a tenant pays rent weekly or monthly, a landlord must provide a minimum of one month’s notice. For yearly tenancies, a landlord must give the tenants 6 months’ notice of any rental increases.
How often can a landlord raise the rent?
No more than once a year if the tenants are under a periodic tenancy. For fixed term tenancies, a landlord can propose a rent increase at any time. For example, they might offer a new fixed term tenancy at a higher rent.
If a tenant declines an increase, the landlord may only increase rent in the following circumstances:
- Your contract has a rent review clause.
- Utilising the section 13 process
Tenant’s Rights Regarding Rent increases
Tenants do not have to agree to an increase. But a landlord can take steps to end a tenancy if a tenant does not agree. For example, by serving a section 21 notice.
Tenants can also go to a gair rent tribunal where they can go to dispute a rent increase. It is worth noting that the tribunal only has powers to act if the landlord is seeking to increase the rent significantly above the present market value.
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