Rent Increase Rules

During a fixed-term tenancy, the rent agreed at the outset cannot be increased unless:

• The tenancy agreement contains a rent review clause that explicitly allows for increases, specifies when and how they can be made (for example, annually, linked to CPI, or by agreement), or
• You agree to an increase in writing.

If your landlord tries to increase the rent mid-fixed-term without a valid clause or your agreement, this is unlawful. You are not obliged to pay more than the agreed rent, and paying under protest does not amount to acceptance of the increase.

Review any rent review clause carefully. The Tenant Fees Act 2019 prohibits certain types of default charges, and a rent review clause that operates as a penalty can be challenged as an unfair contract term.

In a statutory periodic tenancy (i.e., one that runs on a rolling basis), a landlord can only increase the rent using the Section 13 procedure under the Housing Act 1988 (or where the tenancy agreement contains its own rent review clause).

To increase rent under Section 13, the landlord must:

• Serve a prescribed form (Section 13 Notice — Form 4) proposing the new rent
• Give at least one month's notice (or 4 weeks for weekly tenancies)
• Not increase rent more frequently than once every 12 months
• Ensure the proposed increase takes effect on the first day of a new rent period

The Renters' Rights Bill, once fully in force, strengthens these protections and allows tenants to challenge increases that are above the market rate.

If you receive a Section 13 notice and believe the proposed rent is above the market rate for comparable properties in your area, you can challenge it by referring it to the First-tier Tribunal (Property Chamber). You must do this before the effective date of the proposed increase.

The tribunal will assess the open market rent for the property — the rent that could reasonably be achieved in the local market for a similar property. The tribunal can:

• Confirm the landlord's proposed rent if it is fair
• Reduce the proposed rent to the market level
• In rare cases, increase the rent if it is below market (though this very rarely happens)

You do not need a solicitor to use the tribunal. There is a fee to apply. The tribunal's decision sets your rent for that period — the landlord cannot serve a new Section 13 notice to try again for 12 months.

An unlawful rent increase is one imposed outside the permitted procedures. Common examples include:

• An increase mid-fixed-term without a valid rent review clause or your agreement
• An increase in a periodic tenancy without serving the correct Section 13 notice
• Increasing rent more than once in any 12-month period without going through the tribunal

If you believe a rent increase is unlawful, you are not obliged to pay it. Continue paying the previous rent amount and write to your landlord explaining why you consider the increase to be unlawful. If the landlord tries to evict you for non-payment of the increased amount, raise the unlawful increase as a defence in any court proceedings.

Citizens Advice and Shelter can both provide advice on challenging unlawful rent increases.