Notice Of Rent Increase Form – Section 13

Thinking About Increasing Rent

They say the average person thinks about sex every 3 seconds. The average landlord thinks about increasing rent every 2 seconds.

There’s going to be a time when every established landlord has to increase rent. Why? Inflation, fluctuating interest rates, newly introduced legal legislations that come with a price tag (e.g. tenancy deposit scheme) or personal greed.

Page contents:

When can a landlord increase rent?

Check your Tenancy Agreement, because there may be a rent increase clause in there which would have been agreed and signed at the start of the tenancy. The procedure in the agreement should be followed.

If the tenancy agreement makes no provisions for the landlord to make rent increases, then the landlord has two options to increase rent:

  • Renew the tenancy agreement at the end of the fixed term but with an increased rent.
  • Landlord and tenant can mutually agree on the rent increase, which should be agreed on paper, so there is evidence. Write down the newly agreed rate, and both tenant and landlord should sign the document for the record. This is often referred to as a Rent Increase Agreement.
  • Serve a section 13 notice if the tenancy is periodic

Note, the rent cannot be increased during the first fixed term stipulated in the tenancy agreement if there is no rent review clause.

If the tenant disputes the increase, then the landlord can serve a Section 13(2) Notice of the Housing Act 1988, proposing an increase in rent, at the end of the fixed term.

If the tenant is still unhappy with the increase, the landlord can serve a Section 21- Notice of Possession Order Form. This is the legal way for a landlord to gain possession of the property after the fixed term has expired; effectively the tenant is told to vacate.

What is a rent increase form (Section 13)?

The simplest way to make a rent increase is to make a Rent Increase Agreement or by renewing the tenancy agreement. However, failing this, serving a Section 13 Rent Increase Notice would be the next step.

How much can the landlord increase rent by?

Simply, landlords cannot increase rent to any amount- the increase must be “fair” The best way to ensure a fair rate is by keeping it in line with similar properties in the same area. You can do this by talking to local letting agents or looking at the asking prices on property portals like Rightmove.

Section 13 Notice

The Housing Act 1988 provides for a Section 13 Notice to be issued by the Landlord to the Tenant in order to increase the rent after the initial fixed period has expired and the tenancy is in the statutory periodic tenancy, it cannot be used to increase the rent during the fixed term of a tenancy.

It’s also important to note that it cannot be used until 12 months after the start of the tenancy and cannot be used to increase the rent more often than every 12 months.

This route is not available in those cases where the Tenancy Agreement already provides stipulated terms for rent increases.

The Section 13 Notice must provide the following details:

  • Details of the Landlord and/or his Agent
  • Details of the Tenant
  • Details of the Property
  • The amount of the increased rent and any other increased charges
  • The proposed commencement date

When can the increase begin?

The landlord must serve the section 13 to the tenant, giving the Tenant at least 1 months’ notice where the rent is paid on a weekly or a monthly basis. For a yearly tenancy, a period of six months’ notice is required before the increase can be put into effect.

The rent increase must begin on the same day of the month that the tenancy started. So for example, if the rent for the tenancy is due on the 3rd of every month then the new increased rent should also be due on the 3rd of every month.

Before increasing rent

Increasing rent can cause a lot of problems between tenant and landlord, so be careful before making any irrational decisions. Moreover, the increase MUST be fair; more explained on Increasing Rent.

The Tenant’s options

The amount of increase should be considered in relation to the rental charges for other similar properties in the same area. If increases put the rent well above market rents, the tenant can challenge the increase by refering the case to the Residential Property Tribunal.









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27 Comments- join the conversation...

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LadyA 19th May, 2008 @ 06:40

Haha, I knew it. I guess we've got two key messages here. 1)LandLords: Assure there's no clause in the contract stating you can't increase rent at any random point *without valid reason ofcourse* 2) And all tenants MAKE SURE THAT CLAUSE EXISTS for personal peace of mind, or atleast have your future LL elaborate on how much they may increase your rent, which you should probably also get in writing I'd believe.

Thanks for the info amateur PIP.

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LadyA 19th May, 2008 @ 06:42

btw, love the image at the top

LOL, you should do an article on landlords or even tenants getting involved with each other, and the pros or cons of it.

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The Landlord Avatar
The Landlord 22nd May, 2008 @ 19:48

Why, have you got involved with your landlord, or are you considering it? hah

You sound like my type of girl.

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abdul h khan 21st September, 2010 @ 01:46

cuold i have a form please to submit a rent reduce

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jess 26th March, 2011 @ 21:04

im currently in a rented house, and i am coming up to finishing a 12 month tennancy! they sent me a letter out on the 22nd march to state that my rent is being increased on the 6th may (when my tenancy ends) this is not two months notice, am i correct in saying here that the landlord needs to give me 2 months notice?

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Midlander 5th June, 2011 @ 21:13

It's interesting that no mention is EVER made of a landlord decreasing rent because of a downfall in average rents!

But believe it or not, I once had a landlord who reduced my rent by £40 per month, because for reasons I won't go into here, I'd told him I'd have to look for somewhere else to live. He never put it up again (I lived there for almost 9 years) as he didn't want to lose a really good tenant! There are good landlords out ther! :)

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Nitin 27th August, 2012 @ 07:57

hi, i am a tenant from 10 years but my landlord pressurised me to immediate relieve cabin what can i do

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Syamsul Alam 6th November, 2013 @ 15:10

This is a very important thing, that people who rent and those who rent out their properties, should thoroughly understand the laws that apply in the countries and their regions. Do not get in the future there is a misunderstanding between the parties. It is also important for both parties to present their own witnesses.

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Tracey Baker 27th January, 2014 @ 12:24

Hi. We moved into our flat a year ago on a 6 month starting lease, which we moved to a year long in July 2013 with the rent at £550 a month.
There was an affidavit stating it would go up to £575 this month.
Early December, the Agent says the landlord actually meant £595 a month but it was only verbal with no witnesses until the agent came to collect the rent and brought the letter with them saying the £595 was due this month, the same day we got to see the letter...
We have a rent book and that was the only place the new price was written down,
I was wondering if that was allowed?
Can it just be relied on the rent book about and non-witnessed verbal agreement until they arrived with for the rent and bring the increase letter with them?
Can they do that when the tenancy agreement states a lower rate?

Thanks!

Tracey

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David Palmer 24th April, 2014 @ 11:30

Another consideration is that the Government has increased the price of issuing a section 21 notice by 60% from £175 to £280.

I think this is a good thing as it may take the greed aspect out of it.

Rents may be on the increase and the grass always looks greener but if you have a reliable long term tenant stick with them.

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emma 27th June, 2014 @ 22:51

Hi there i been renting 3 yrs nw my tenancy ran out in April but have carried on paying rent my lanlord wants to renew tenancy and put rent up couple hundered a month he wants his rent backpaid from april till now i have had no warning whatsoever about rent i increase untill he visited property
last week is he allowed and has my tenancy not just rolled over 4 months ago can he make me backpay his change in rent from then with no warnings

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The Landlord Avatar
The Landlord 28th June, 2014 @ 07:58

Hi Emma,

No, he can't, he only has the right to increase the rent going forward.

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emma 28th June, 2014 @ 09:44

Hi there thanks for the help how about my tenancy agreement ? Would it not just roll over and when i sign fo i sign a back date from April or todays date ? Sorry there's a lot of questions i signed an inventory on moving into property building control had to order landlord to concrete kitchen as was a timber floor house had rats n mice everywhere all done now but standard of work is terrible builder left leaking pipes so half the floor all swollen my landlord has said he doesn't have to do a new inventory but i don't want the finger pointed at me when the same shoddy builder has yet again made a pigs ear of it,all having ongoing problems for mnths now help!😐

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David 2nd July, 2014 @ 17:51

@Emma

I would call local Council re rats, they can compel him to resolve.

Call Council building control officer to inspect work

Refer rent increase to housing tribunal

https://www.gov.uk/housing-tribunals/disputes-about-rent

Insist in inventory or carry out your own, make a video and post it to you tube as a hidden video so you can show the date later.

You do not have to renew if old tenancy expired, you are on now on a statutory periodic tenancy.

Sounds like a dump so try to find a better place, tell landlord you reject his attempt to increase rent and you are referring to tribunal.

He has to issue you with notice for possession which is called Section 21 notice, it had to end on a date when rent is due.

Did he protect your deposit?

Did he inform you within 30 days of where the deposit was protected and give you all the prescribed paperwork?

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marcell 5th October, 2014 @ 17:35

I have lived in my place for 3 years asked for a rent deduction as flat mate is moving out.But my landlady has said she is putting my rent up contract ends in 4 weeks. I can't afford the increase so agreed to move but that means I have to move within the month. how much notice should she give me??
kind regards
Marcell

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Susan Herbert 30th October, 2014 @ 20:54

Is 10% increase in rent fair given that the inflation rate is 3.3%. No heating in kitchen or 2nd bedroom. Nightstore heaters in living room and smaller bedroom (that we as tenants) had put in and electric fire in bathroom that we put in. Sash windows which are badly fitting and broken sashcord in one. Bare wood on outside of windows - live in a flat above a newsagents. Could I ask LL to consider 5%?

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Helen 30th October, 2014 @ 21:04

@SusanHerbert
Your landpord sounds like my last one - a complete SOB. Take it direct to your council & ask them to adjudicate this rent rise & the circumstances.

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Susan Herbert 30th October, 2014 @ 21:24

Helen
Thank you. I was thinking of going to the fair rent tribunal but then they assess rents by market value of rents in the area. They may well increase it then. Should have said that I rent privately.

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David 2nd November, 2014 @ 09:18

If you think that the house does not meet standards contact your council housing dept and ask for a housing office to attend, youshould not be having to pay high energy bills because property is not sound (windows).

You should look at the LHA rates for your area (available online).

There are a number of factors taken into consideraton in rent increases I would insist on formal review under section 13.

Inflation is not only factor and they have averaged nearer 2% than 3% BTW. If the rent was above LHA standard to begin with they may be told. You can also point out condition of property and how the lack of heating means you have to spend a fortune on energy bills.

A storage unit is not a consumer product, they have to be fitted to safety standards.

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Ron Taylor 22nd November, 2014 @ 21:05

Hi All

Very interesting to see and read the the comments posted. I have been on both sides of the spectrum.

I will try and answer / give my opinion on a couple of the questions in aid to help and assist.

Marcell it might be a little late now, however you need to look in your contract, if its a fixed term and their is no mechanism ( clause ) to raise the rent then she would be unable to do this within the fixed term. She has to wait for it to expiry before raising the rent. This could be why she waited that long. On the other hand by waiting till the end you as a tenant would be more likely to accept the increase, e.g 1 month to look for a property in an increasing market. Most tenants would think its not worth the hassle finding a new property, getting a new deposit, and going through the referencing process, paying agent administration fee, and the charges go on as you expect. one of two things will happen. The contract will become a periodic tenancy and will remain on the same terms as your old contract no change if you speak to your landlady. A new rent will be agreed and you would either need to confirm you agree with it and continue at the higher rent, or the landlord will then need to serve you with a section 21 notice which requires her to meet legislative criteria.
Minimum 4 Weeks notice to comply with the Protection of Eviction Act 1977 & Minimum of 2 months if your tenancy falls within the Housing Act 1988. It does sound like you might be renting a room or sharing the facilities with the landlord, this and other scenario's would make your tenancy fall outside the Housing Act 1988 so she would not have to give you 2 Months Notice but would definitely have to comply with the Protection Of Eviction Act 1977. Unless you where a lodger/paying guest in a hostel/hotel and this protection would also not apply to you.

Helen & Susan it sounds like an awful place. Allot of landlords offer sub standard properties and expect there weight in gold for them. Rent is always up for negotiation. If it is really that bad then he might have to look at a 5% increase or no increase at all, so use this to your advantage. If you where to move out the extra couple of pounds he is trying to make would be at a loss to him should he have a avoid period for a week or two weeks etc ( time is money to any landlord ). Christmas is also a hard time to find suitable tenants so he is really risking it.

David is right if you have an assured shorthold tenant then the landlord can issue you a section 13 to increase the rent. A minimum of 4 weeks notice needs to be given and it must be given in the set format if you do not verbally agree it. This can only be used once a year or once every fixed term has finished. This can be challenged or raised to the Rent Assessment Committee or First-Tier Property Chamber Tribunal.

10 % does seem excessively high and the rent officer aims to value you in in comparison to market rate but discounts/exclude certain factors such as supply and demand/ scarcity , tenant and landlord improvements. They just look at the attributes age, condition, size of the property and value it for what its worth within the locality. they have to comply with section 70 fair Rent Act 1977 that stipulates how a rent officer should reassess the rent for a property.

Best of luck and i hoped the above helped.

KR

RT

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Angela 29th September, 2015 @ 07:51

Have been a tenant in same house for 25 years! Rent goes up every few years but landlord has just said rent going up but by 30 a week!! To me that's far too much, is he allowed to increase that much in one go?

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Alan 16th March, 2016 @ 23:04

Brilliant information

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Caron 1st May, 2016 @ 16:50

I am a landlady and my tenants 12 month Assured Shorthold Tenancy Agreement is up for renewal in a few days, they have said that they want to stay another year and i am happy for them to do so.

However, I have not increased the rent for the last 3 years, even though there is clause in my contract stating the following:

On each anniversary of the date of this agreement, if this agreement stays in force for more than a year, the rent may be increased in line with the retail price index or by 4.5%, whichever is the greater.

So I have proposed a 2% a month increase, (which i think is very fair) but how long notice period of this increase do I need to give them?

Thank you

Caron

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David 2nd May, 2016 @ 18:33

Well if you read above from where it says "When
can a landlord increase rent?"

It says "Check your Tenancy Agreement, because there may be a rent increase clause in there which would have been agreed and signed at the start of the tenancy. The procedure in the agreement should be followed."

You did that and if you do not renew but go statutory Periodic then you can increase the rent in accordance with the agreement on the anniverary. For a SP they could query (section 13) it but at 2% you are not going to have a problem.

A stated above, the other option you have is

"Renew the tenancy agreement at the end of the fixed term but with an increased rent."

If for some reason they do not want to agree to sign a new tenancy and they remain in the property (assuming you did not serve them a Section 21 2 months ago) then you have to serve a Section 21.

Obviously you would want to make sure that you have protected the deposit in an approved scheme and issued the prescribed information before issuing a section 21.

All you need to do is email the tenant and say to them that in accordance with Clause X you propose increasing the rent by 2%, please would they be so kind as to confirm this is acceptable and that they still wish to renew the tenancy agreement.

If they say they are not in agreement say to them "so are you giving notice to quit, when do you plan to leave"? If they say on

It is a bit lastminute.com but I think all will be fine.

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David 2nd May, 2016 @ 18:36

If they stay on beyond the expiry of the AST they become Stat Periodic and you have to issue 21.

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curious 16th June, 2016 @ 11:48

I am a landlord, I have issued my tenant with a section 13 notice back in April giving them 1 months notice of my intention to increase their rent.
My tenant agreed to this and took the notice to the council who pay the majority of their rent.the council said they needed a tenancy agreement but I have been unwell and have only just become well enough to deal with this .
My question is: Do I have to issue my tenant with a new section 13 or can I back date the tenancy agreement to May or can I just give a tenancy agreement starting from this month.

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David 17th June, 2016 @ 05:56

Is the tenant is on Housing Benefit and taking the agreement to the Council so they increase HB, or is S/He taking it for them to review?

You can backdate the tenancy agreement, otherwise if on HB they will not pay the higher amount. If it is the latter then it makes no difference as they will decide what they decide regardless of the date.

The mistake many Landlords who have DSS tenants make is putting the rent up above the LHA allowance for their area. You can find this out from gov.uk

If you have a DSS tenant and they are on Housing Benefit with a rent £100 per week and the LHA is £100, all is well. Then you put the rent up to £140 a week but the LHA rate is still around £100.

What happens is the Council will pay you the £100 LHA rate only, now the tenant may start off my making up the difference, but do the maths. If they are on JSA they get around £74 a week, so no way they can spend £40 of that on your rent and so come the arrears.

So before you do the rent increase check the LHA rate, if your new total is under LHA rate then fine, but if not you may as well issue a S21 because it will only be a matter of time before the tenant can't keep up with rent.

Benefits have been frozen for some years and Osbourne recently said they will be frozen for at least 4 more.

Meanwhile the LHA rates have NOT increased in line with rent increases and so we are at a point where people on low incomes or benefits simply can't afford to rent in the private sector. So they fall of the ladder but if they did not keep up with their rent it is their fault so they so not get housed or only a fraction do.

Meanwhile Landlords are getting stung with the tax increases so even those with old cheap mortgages are forced to put up rents just to stand still.

All this at a time when we have a massive shortage of rental property in the market.

This is what happens when you put people in charge of Government who have never run a business or had a proper job.

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