Rent increase notices: What is a fair rent increase?
A fair rent increase is one that complies with UK tenancy law, reflects current market values, and is introduced with proper notice. Every tenancy agreement should explain how and when rent can be reviewed. The rules differ depending on whether the tenancy is fixed-term or periodic.
When can a landlord increase rent during periodic tenancies?
Periodic Tenancies
For periodic tenancies - rolling weekly or monthly agreements - rent can only increase once per year unless the tenant agrees otherwise. The landlord must give at least one month’s written notice before any increase takes effect.
Fixed-Term Tenancies
For fixed-term tenancies (e.g. six or twelve months), rent can only rise if:
- The tenant agrees in writing, or
- The tenancy includes a rent review clause specifying how increases are handled.
If neither condition applies, rent can only change after the fixed term ends.
What is a Rent Review Clause?
A rent review clause allows landlords to adjust rent during a fixed-term tenancy according to agreed rules. It must clearly state:
- When the increase will occur
- How much notice the tenant will receive
- The method used to calculate the increase (for example, inflation or market value)
This ensures transparency and prevents disputes about future rent levels.
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What is a Section 13 Notice?
If a tenancy has no rent review clause or the fixed term has expired, landlords can use a Section 13 notice under the Housing Act 1988 to propose a new rent.
- It can only be used once every 12 months.
- Tenants must receive at least one month’s notice for weekly or monthly tenancies, or six months’ notice for yearly ones.
- The increase cannot take effect until after a fixed term has ended.
For a full breakdown of rent increases and the legislation involved, visit gov.uk.
How much can a landlord raise the rent?
Any rent increase must be fair and in line with local market prices. Landlords cannot raise rent unreasonably or without written consent.
For example, if similar one-bedroom flats rent for £600 per month, increasing to £900 would likely be considered excessive.
Between June 2021 and June 2022, average UK rents rose by 9.5%, showing how inflation affects market trends.
How much notice must a landlord give?
Before any rent increase takes effect, the following notice periods apply:
- Weekly or monthly rent: Minimum one month’s notice
- Yearly tenancy: Minimum six months’ notice
Most assured shorthold tenancies begin with a fixed term, meaning rent cannot increase during the first year unless a rent review clause allows it.
How can a landlord propose a rent increase?
Landlords can legally increase rent in three ways:
1. Renew the tenancy at the end of a fixed term with a higher rent stated in the new agreement.
2. Agree a rent increase in writing with the tenant, there must be a written record of the agreement that both parties sign.
3. Issue a ‘Landlord’s Notice Proposing a New Rent’ (Form 4) under Section 13 after the fixed term ends.
All changes should be documented and dated to avoid disputes.
Can a tenant refuse a rent increase?
Yes. Tenants can refuse a proposed increase and appeal to a tribunal to challenge a section 13 rent increase. The tenant must still pay the rent at the existing rate until a decision is reached.
Free advice and support are available from Shelter England’s guide.
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