What is a fair rent increase?

Periodic tenancies: When can a landlord increase rent?

For periodic tenancies, which roll on a weekly or monthly basis, landlords can only increase the rent once a year unless the tenant agrees to more frequent changes. This ensures tenants are not subjected to sudden, unexpected increases.

Fixed term tenancies: When can a landlord increase rent?

In fixed-term tenancies, which run for a set period (e.g., six months), rent can only be increased with the tenant's consent. If the tenant does not agree, the rent remains unchanged until the fixed term concludes.

Review clauses in tenancy agreements

Including a rent review clause in the tenancy agreement can streamline the process. This clause should specify:

  • When the rent increase will occur
  • The notice period given to the tenant
  • The method used to calculate the rent increase to ensure transparency

Darlows' Property Management services can assist landlords in managing payments and drafting comprehensive tenancy contracts.

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Section 13 notices

If there is no rent review clause, landlords can use a Section 13 notice to propose a rent increase. This notice can only be issued once a year and requires:

  • At least one month’s notice for weekly or monthly tenancies
  • Longer notice periods for tenancies lasting more than a month (typically six months).

A Section 13 notice cannot take effect during the fixed term of a tenancy. For detailed guidelines, visit gov.uk.

What is a reasonable rent increase?

Landlords must get the tenant’s consent to increase rent beyond any previously agreed amount. The increase should reflect local market rates and property size. For instance, if local rents for one-bedroom flats average £600 per month, charging significantly more would be unreasonable.

Rental prices in the UK's private sector increased by 6.1% over the twelve months leading up to October 2023.

How much notice do I need to give to a tenant?

Landlords must provide sufficient notice before implementing a rent increase:

  • One month for weekly or monthly tenancies
  • Six months for yearly tenancies.

During a fixed-term tenancy, rent increases are only possible if a rent review clause exists in the agreement.

How do I propose a rent increase?

To propose a rent increase, a landlord can:

  • Renew the tenancy agreement at the end of the fixed term with a new rent amount
  • Agree on a rent increase with the tenant, documented and signed by both parties
  • Use a 'Landlord’s notice proposing a new rent' form after the fixed term ends.

Can tenants refuse a rent increase?

Tenants can refuse a proposed rent increase and appeal to a tribunal, particularly in disputes over Section 13 notices. During the appeal, tenants should continue paying the current rent until a decision is made.

For more advice on handling rent increase disputes, tenants can refer to Shelter England’s guide. If an agreement cannot be reached, the tenant may choose to move out. Find out more about ending a tenancy here.

Advice for tenants and landlords from Darlows

Darlows leverages local expertise to help landlords and tenants achieve fair rental prices. For assistance with renting in South Wales, find your local Darlows office today.