Rent increases

When can the landlord increase my rent?

The initial rent will have been agreed when you first moved in but what happens when the landlord wishes to increase the rent at a later date?

Usually there is provision for increasing the rent in the contract and this is your starting point. For example, there may be a clause in the contract stating that the rent is increased by 5% every year.
If there is provision for increasing the rent in the contract then both parties are usually bound by the agreement; the landlord cannot charge more than the contract allows.

If you have a fixed term tenancy and there is no provision for increasing the rent in the contract, then the landlord cannot increase the rent until the fixed term has come to an end, unless you agree.

When the fixed term comes to an end you become a statutory periodic tenant [see Fixed term/Periodic]. At this point you may agree a rent increase with your landlord. If not then the landlord must follow the procedure for increasing the rent as set out in the Housing Act 1988. The rent can then be increased at yearly intervals.

If you have a periodic tenancy and there is no provision for increasing the rent in the contract, then the landlord can only increase the rent if you agree, or after 1 year of the tenancy by following the procedure for increasing the rent as set out in the Housing Act 1988. The rent can then be increased at yearly intervals.

If the landlord wishes to increase your rent then he or she must serve a formal notice on you in a form prescribed by the Housing Act 1988. The Notice is called, "Landlord's notice proposing a new rent under an Assured periodic Tenancy or Agricultural Occupancy".

The notice must give you a minimum of a month's notice if you pay your rent weekly or monthly, or a longer notice period corresponding to the rental period, say, quarterly.

If you agree to the proposed rent increase then you simply commence paying the new rent from the date specified.

If you do not agree to the proposed rent increase then you must apply to the Rent Assessment Committee using the form, "Application referring a Notice proposing a new rent under an Assured periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee".

There are no costs involved for either party in applying to the Rent Assessment Committee. The form is available from the Committee itself or law stationers.

The Rent Assessment Committee must receive the form before the notice period has expired. If you miss this date then the RAC has no discretion to hear your case and the landlord will be able to charge the rent as he wishes.