Failure to Increase Rent Correctly

Rent increases for statutory tenancies, such as Assured Periodic Tenancy, must follow specific legal procedures set out in legislation or be agreed mutually by both the landlord and tenant. Failure to adhere to the correct process can render the rent increase invalid and unenforceable, leaving tenants entitled to continue paying rent at the existing rate.

How Rent Increases Must Be Conducted

Landlords can increase rent only by following the statutory procedure outlined in the Housing Act 1988, such as serving a valid Section 13 Notice.

Consequences of Failing to Follow Proper Procedures

If a landlord fails to follow the correct procedure, the rent increase will not be the lawful rent due from the tenant. The tenant is entitled to continue paying the rent at the previous level.

Disputes Over Rent Increases

When disputes arise about rent increases or the validity of notices:

  1. First-tier Tribunal (Property Chamber):

    • The tribunal can determine whether a proposed rent increase is valid.
    • It can only hear applications if the correct statutory notice (e.g., a Section 13 Notice) has been served [1].

  2. County Court Applications:

    • Tenants or landlords can apply to the County Court for a declaration to determine whether a rent increase is legally valid [2].

Key Considerations for Landlords

Serve Correct Notices

Ensure all rent increase notices comply with statutory requirements, a Section 13 Notice must be served in the prescribed form and include:

  • The proposed new rent.
  • The date the new rent is intended to take effect (at least 2 months after service).
  • The tenant’s right to challenge the proposed rent at the First-tier Tribunal.

Check Rent Review Clauses

Following the enactment of the Renters Rights Act 2025, rent cannot be increased pursuant to any rent review clause that purports to allow the rent to be increased outside the statutory Section 13 procedure.

Common Scenarios

  • Periodic Tenancies: Rent can only be increased via mutual agreement or by serving a Section 13 Notice. Failure to serve the notice renders the increase unenforceable.
  • Post-Tribunal Decisions: If the First-tier Tribunal sets the rent, further increases must follow the Section 13 procedure.

Conclusion

Landlords must follow strict legal procedures to increase rent for statutory tenancies. Failing to serve valid notices or operate rent review clauses correctly can render increases unenforceable. Tenants should be proactive in disputing invalid increases and ensuring they do not inadvertently agree by paying increased rent without objection. Both landlords and tenants should seek professional advice or engage the tribunal or court system for disputes.

Contact our legal term for advice and assistance with rental increases.

[1] s.14(1) Housing Act 1988.
[2] s.40 Housing Act 1988.

 

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