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.

[2] s.13(2) 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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