The Renters' Rights Act significantly changes how landlords can increase rent. The new procedure is more restrictive than the current rules, and getting it wrong can result in the rent increase being challenged at a tribunal.
The New Rent Increase Rules
Under the Renters' Rights Act, landlords can only increase rent:
The Section 13 Notice Procedure
To increase rent, landlords must serve a Section 13 notice on the tenant. The notice must:
Tenant's Right to Challenge
Tenants have the right to refer a Section 13 notice to the First-tier Tribunal (Property Chamber) for a determination of the market rent. The tribunal will set the rent at the market rate — it cannot set rent above the market rate, even if the landlord requests a higher amount.
If the tenant refers the notice to the tribunal, the rent increase is suspended until the tribunal makes its determination.
Common Mistakes to Avoid
Mistake 1: Using informal rent increase agreements. These are not valid under the new Act. You must use the Section 13 notice procedure.
Mistake 2: Increasing rent more than once per year. This is not permitted. Even if both parties agree, a second increase within 12 months is not valid.
Mistake 3: Using the wrong notice period. The notice period depends on the payment frequency. Monthly tenancies require one month's notice; weekly tenancies require one week's notice.
Mistake 4: Not explaining the tenant's right to challenge. The notice must include information about the tenant's right to refer the increase to a tribunal.
RentersComply's Rent Increase Procedure Manager guides you through every step of the correct procedure and generates the Section 13 notice automatically.