Rent Increase
This page provides information on increasing the rent under an assured or assured shorthold tenancy.
There is no statutory method available which allows a landlord of an assured or assured shorthold fixed-term tenancy to increase the rent during the fixed term. The rent will be that which was agreed by the parties, unless:
- an application from an assured shorthold tenant to reduce the rent is made
- a rent review clause
- agreeing to a new rent
Periodic tenancies
When the fixed term of a tenancy comes to an end, there are only certain ways in which a landlord wishing to increase the rent of an assured or assured shorthold periodic tenancy can do so. They are by:
- agreement with the tenant
- operating a rent review clause (but this does not apply to statutory periodic tenancies)
- using section 13 of the Housing Act 1988
- using section 6 of the Housing Act 1988 (statutory periodic tenancies but only in limited circumstances).
A section 6 or 13 notice can be served on a tenant to increase the rent. The most common notice to use is a section 13 notice and this is a prescribe form. If the prescribed form is not used the rental increase will be defective.
The use of section 13 is subject to limitations:
- it cannot be used during the first 12 months (52 weeks) of a contractual periodic tenancy[1]
- a notice of increase can be served during the fixed term of an assured or assured shorthold tenancy, but the rent increase must take effect after the:[2]
- tenancy has become statutory periodic, and
- ‘minimum period’ (see below) following service of the notice has expired.
- for assured shorthold tenants where a Tribunal has reduced an ‘excessive’ rent, an increase cannot take effect until the anniversary of that determination
- it can only be used to increase the rent once every 12 months (52 weeks)[3].
Our experts can draft and serve your tenant with a section 6 or 13 notice.
[1] s.13(2)(b)(ii) Housing Act 1988.
[3] s.13(3A)(b) Housing Act 1988, as inserted by art.2(b) Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003 SI 2003/259.
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