Can My Landlord Increase the Rent During My Tenancy?

Current Rules on Rent Increases

Under current legislation, your landlord's ability to increase rent depends on the type of tenancy agreement you have:

• Fixed-term tenancy: Rent can only be increased during the fixed term if there's a rent review clause in your agreement or if you agree to the increase. If you disagree, the rent can only be increased when the fixed term ends.
• Periodic tenancy: Landlords can propose a rent increase once every 12 months by serving a Section 13 notice, providing at least one month's notice. The rent increase must be fair and realistic, meaning in line with average local rents.

If you disagree with the proposed increase, you can challenge it by applying to a First-tier Tribunal before the new rent takes effect. It's important to act promptly, as paying the new rent may be considered acceptance of the increase.

Proposed Changes Under the Renters' Rights Bill

The Renters' Rights Bill, expected to become law in late 2025, introduces several reforms aimed at providing greater security for tenants:

• Limit on rent increases: Landlords will only be permitted to raise rents once a year, and any increase must align with market rates. This is designed to provide tenants' financial stability and curb sudden, unfair hikes.
• Notice period: A minimum of two months' notice must be given for any proposed rent increase, doubling the current requirement.
• Ban on bidding wars: Landlords and agents will be prohibited from accepting offers above the advertised rent price. This change aims to prevent inflated rents in competitive markets, offering tenants fairer property access.
• Challenge process: Tenants will retain the right to challenge excessive rent increases through a First-tier Tribunal. The tribunal will assess whether the proposed rent is in line with market rates and can adjust it accordingly.

These changes aim to create a more transparent and fair rental market, offering tenants better protection against sudden and unreasonable rent hikes.

What This Means for You

As a tenant, it's important to:

• Review your tenancy agreement to understand any clauses related to rent increases.
• Stay informed about the implementation of the Renters' Rights Bill and how it may affect your tenancy.
• Communicate with your landlord if you have concerns about proposed rent increases.
• Seek advice or support if you believe a rent increase is unjustified or improperly executed.

Need Assistance?

If you're facing a rent increase or have questions about your tenancy rights, Farrell Heyworth is here to help. Our experienced team can provide guidance and support to ensure your rights are protected.