Can My Landlord Increase My Rent? Can I Refuse To Pay?

When Can Your Landlord Increase Rent?

These are the golden rules – nothing overrides them:

• Landlords can only increase the rent once per year.
• Landlords cannot increase the rent during the first year of the tenancy.

If your tenancy agreement contains terms that contradict these rules (for example, stating that the landlord is entitled to a rent review six months into the tenancy), those terms are unlikely to be enforceable, even if you originally agreed to them.

The Only Way Landlords Can Increase Rent

Landlords must issue tenants with a Section 13 notice, which is essentially a formal document that sets out the following:

• 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

There is no other lawful route to increasing rent, so any informal arrangements or backdoor agreements are unlikely to be valid or enforceable.

How Much Notice Must Landlords Give for Rent Increases?

Tenants must be given at least 2 months’ notice. This means that landlords can issue a rent increase notice 10 months into a new tenancy, provided the increase does not take effect until after the first 12 months of the tenancy.

How Tenants Can Challenge Rent Increases

If you’ve received a horrid notice of a rent increase and believe it’s excessive, consider the following:

• Rent increases cannot be unreasonable. Any increase must broadly reflect the current “market rate”, which effectively means the amount the property would likely achieve if it were newly advertised on the open market.
• If you believe the proposed increase is unreasonable, you can challenge it through the First-tier Tribunal. There is a £47 application fee payable by the tenant. The tribunal will then assess the property and determine what the appropriate market rent should be, including whether the landlord is asking for too much (or, in some cases, too little).

Can Your Landlord Evict You for Not Accepting a Rent Increase?

Maybe!

If you challenge a rent increase via the First-tier Tribunal and the decision is that the proposed rent is reasonable, but you still refuse to pay the new amount, the landlord may have grounds to seek possession based on rent arrears. Even if you continue paying the previous rent, you may still technically fall into arrears.

However, since the Renters’ Rights Act has abolished Section 21 notices, meaning “no-fault” evictions no longer exist, landlords can no longer evict tenants arbitrarily, including in response to a challenge to a rent increase. Previously, it was not uncommon for landlords to use Section 21 notices to regain possession where tenants pushed back against proposed increases, even where those increases may have been considered unfair.

I think that pretty much covers it – hope it helped (especially if it stopped your landlord in their tracks from trying to impose an unreasonable rent increase)!

Landlord out xo