What to do when your landlord raises the rent?

Rent increases can be frustrating and put a strain on your budget. However, landlords have the right to raise the rent, but there are laws in place to ensure fairness and prevent excessive increases.
Let's go through the rules and steps you can take to handle a rent increase effectively.

They can increase rent at some point, but the specific terms depend on your rental contract.

1. Fixed-term contract:

• Your landlord can usually raise the rent during a fixed-term tenancy if the rental contract includes a rental review clause. This clause should outline how and when the landlord can increase the rent within the fixed term and provide notice.
• If your landlord proposes a rent increase that isn't specified in your contract, they must obtain your written agreement. You're not obligated to accept a rent increase during the fixed term unless you agree to it.
• If you don't agree, the landlord can only raise the rent once the fixed term ends and you transition to a rolling contract. They must serve you a Section 13 notice to notify you of the increase.

2. If you're on a rolling contract:

• Your contract may or may not include a rent review clause. If there is no such clause, your landlord can serve you a Section 13 notice to inform you of a rent increase. This notice can only be served once a year.

There isn't a fixed number or percentage, but your rent should be in line with similar properties in your local rental market.
The government's guidance states that rent increases must be fair and realistic, aligning with average local rents. For example, if you're renting a two-bedroom flat for £1500, and similar flats in the area rent for £1,750, it would be reasonable for the landlord to request a £250 per month increase.
However, a proposed jump to £1,950 for the same flat would likely not meet the "fair and realistic" standard, and you would have the right to challenge it.
Landlords must obtain your permission if they wish to increase the rent by an amount greater than what was previously agreed upon in the contract.

1. Check your contract:
Review your rental contract to see if it includes a rent review clause, which will outline the process for rent increases. If you're on a fixed-term contract, the rent can only rise in accordance with this clause, unless you agree to it in writing.

2. Look at local rents:
Research rental properties similar to yours in your local area. Compare their rents to determine if the proposed increase aligns with the market. Ensure you're comparing properties of similar size and with the same number of bedrooms and similar features.

3. Speak to your landlord or letting agent:
Have a calm and professional conversation with your letting agent or landlord. Share your concerns if your contract doesn't allow for a rent rise or if you believe the proposed increase is unfair. Present the research you've conducted on local rental properties to support your reasoning.

4. Negotiate if possible:
Respectfully inquire with the letting agent if the landlord is open to negotiation, particularly if you find the increase too high. Explain your situation and the impact of the higher rent on your finances. Suggest a rent amount you consider fair based on your research. Negotiation may prevent the risk of losing you as a tenant, and reaching a fair agreement is beneficial for both parties.

In case all other attempts fail, you have the option to dispute a rent increase and seek a decision from a tribunal to determine its fairness.
You can bring your case to a tribunal to challenge a rent increase if:

• The increase is a result of a section 13 notice, and
• You believe the increase is unreasonable, whether it's significantly above the market rate, the property is in poor condition, or the landlord has not fulfilled their responsibilities.

You cannot approach the tribunal if the rent increase is within the terms specified in your rental contract.

Important things:

• There is no charge for applying to the tribunal
• It's important to note that the tribunal may determine that the proposed rent increase is even fairer than what the landlord has suggested. Therefore, it is typically worthwhile to challenge the increase only if it is evidently too high.
• Continue paying your current rent, not the proposed higher amount.
• Ensure that you submit your application to the tribunal before the commencement date of the new rent. Otherwise, the new rate will automatically become applicable.
• While waiting for the tribunal's decision, continue paying your existing rent amount. Failing to do so could lead to rent arrears and potential eviction.

However, refrain from paying the proposed higher rate until the tribunal issues its decision. Paying the higher amount could be seen as accepting the new rate.

The tribunal consists of two or three professionals, such as solicitors or surveyors, who assess rental prices in your locality. They also consider the amount your landlord would charge if a new tenant were to move in.
Based on this information, they determine the fairness of the rent increase, and their decision is final. They will inform you whether your rent will remain the same or be adjusted.
If the tribunal determines that the increase is fair but you are unwilling to pay it, you will be required to find alternative accommodation.

For individuals residing outside of England, the procedures may vary.