How To Increase Your Tenant’s Rent – Section 13 Notice (England)

Rent Increase Notice - Section 13

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 in every established landlord’s career when they have to increase rent, meaning out of necessity, and not greed. Why? Simply, inflation.

Either way, whatever your motive may be to increase your tenant’s rent (although, I hope it’s for all the right reasons), it’s critical to follow the proper legal procedures by doing it the right way.

I’m not going to get into the ethics of rent increases, but rather focus purely on the process. But I will say this: every landlord should think carefully about applying rent increases, and only proceed with care and caution. It’s a blunt tool.

Landlords Rent Increase

Page contents

When can a landlord increase rent?

First and foremost, check your Tenancy Agreement, because it might contain rent increase clause(s). The procedure in the agreement should be followed.

If the tenancy agreement makes no provisions for rent increases, then the landlord has following options depending on the status of the tenancy:

If you’re in a Fixed term Tenancy

  • If there is no “rent review” clause that can be applied during the fixed term, then the landlord cannot force a tenant to pay a new rate without their permission. The landlord can, however, propose a rent increase to take effect after the fixed-term has expired with Section 13 Rent Increase notice.
  • Regardless of whether there is or isn’t a rent review clause [that can be applied during the fixed-term], the landlord and tenant can mutually agree on a rent increase. This should be agreed in writing, specifying the new rate and the commencement date. Both tenant and landlord should sign the document for the record. This is often referred to as a Rent Increase Agreement.

If you’re in a Statutory Periodic Tenancy (rolling on a week-by-week or month-by-month basis)

  • Serve a Section 13 Rent Increase notice, giving the tenant a minimum of one months’ notice.

If you’re not sure what the hell you have, allow my guide on periodic tenancies to shed some light on the matter.

What if the tenant disputes/rejects the rent increase?

Assuming the proper procedures have been followed by the landlord, if the tenant is unhappy with the increase and is refusing to comply with the new terms (which they’re completely entitled to do), then the landlord can either backtrack with the proposed increase altogether, negotiate another rate, or serve a Section 21 notice to regain possession of the premises in order to find new tenants that are willing to pay the new rate.

I appreciate that there’s a strong case for increasing rent if you’re currently charging well below the market fair value. However, if you’re not, and if you have good tenants that are refusing the new rate, it’s often more cost-effective to back-track on rent increases. Bear in mind the cost to replace tenants (e.g. marketing costs, potential void periods etc), not to mention that you may end up replacing them with lower quality tenants.

How much can the landlord increase rent by?

Simply, landlords cannot increase rent to any amount, the increase must be fair market rent.

As per the Gov guidelines, “the rent increase must be fair and realistic, which means in line with average local rents”

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.

What is a rent increase form (Section 13 – Notice Of Rent Increase Form)?

The easiest way to increase rent is to renew the tenancy agreement with the new terms at the end of the fixed term (this will create a new fixed tenancy). However, if you wish for the tenancy to roll onto a periodic tenancy (after the original fixed term expires), serving a Section 13 Rent Increase Notice is one way to do it.

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.

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

How much notice must landlords give to increase rent?

Landlords must provide 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.

How tenants can challenge rent increases

If the proposed rate is considered unfair and/or well above the fair market rate, tenants can challenge the increase by referring the case to the Residential Property Tribunal.









Download your Notice Of Rent Increase Form Section 13 Template (for England ONLY)

Sign up to the Landlord Newsletter to receive your download link, along with regular email updates, which will include notifications of new posts, landlord tips, discount codes and exclusive offers!

If you're already a subscriber, enter the same email address you subscribed with, and you'll get taken to the download page directly without needing to resubscribe.

The form can be modified to suit your requirements/needs.

Your personal information will *never* be sold or shared to a 3rd party. By submitting your details, you agree to our Privacy Policy.

33 Join the Conversation...

Guest Avatar
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.

1
Guest Avatar
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.

2
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.

3
Guest Avatar
abdul h khan 21st September, 2010 @ 01:46

cuold i have a form please to submit a rent reduce

4
Guest Avatar
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?

5
Guest Avatar
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! :)

6
Guest Avatar
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

7
Guest Avatar
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.

8
Guest Avatar
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

9
Guest Avatar
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.

10
Guest Avatar
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

11
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.

12
Guest Avatar
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!😐

13
Guest Avatar
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?

14
Guest Avatar
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

15
Guest Avatar
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%?

16
Guest Avatar
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.

17
Guest Avatar
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.

18
Guest Avatar
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.

19
Guest Avatar
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

20
Guest Avatar
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?

21
Guest Avatar
Alan 16th March, 2016 @ 23:04

Brilliant information

22
Guest Avatar
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

23
Guest Avatar
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.

24
Guest Avatar
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.

25
Guest Avatar
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.

26
Guest Avatar
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.

27
Guest Avatar
Stuart 4th June, 2017 @ 14:25

I've been renting a lockup garage
For 15years after 8 years they put up the rent and never told me
7years later put a note on the the door asking for the extra rent £1000
Can they do that

28
Guest Avatar
David 4th June, 2017 @ 17:54

Your agreement is common-law contractual, not protected by any of the various housing laws of which section 13 (this thread) is about.

You have a legal contract, they can only do what it says in the contract, subject to it not going against common law.

They would probably have had to have served you notice of increase and putting a notice on a door you infrequently visit probably does not suffice, but look at the contract.

I would fire off a letter saying you reject their assertion of allegedly increasing the rent 7 years ago as you were never served with any increase and you reject their attempt to retrospectively charge you.

You can expect a termination notice, you may want to move your stuff just in case. Having said that 7 years x 12 months is 84 months, so they are only claiming £11.90 a month extra. The issue is whether you were informed in accordance with what is in the contract.

Make sure they have your contact details in case they decide to take legal action and want to serve you with a claim, they may win a legal case by default if you did not turn up .

Get some proper legal advice to protect your position.

29
Guest Avatar
Simon Pambin 4th June, 2017 @ 18:01

No, they can't: if the genuinely failed to inform you it would be regarded as consideration after the fact. Even if there were a clause in the original agreement allowing them to raise the rent arbitrarily without informing you, any judge would throw it out as an unfair contract term. And even if the judge didn't throw it out on that basis, the fact that they didn't point out that you were underpaying (as they saw it) for seven years, means that you'd have a defence of estoppel.

30
Guest Avatar
H Mah 3rd February, 2020 @ 23:25

I have a 78 year old widow lady tennant who is not paying rent or taking responsibility. Her son lives nearby in a 4 bedroom home and daugther in a 2 bed. A section 6A was served but she has done a counterclaim for dampness and disrepair after living there for 18 years with her partner who died last year. Her husband died in Yemen last year and a facebook post was up on 18th June 2019 about his death and after his burial and property distribution she returned to UK in August 2019 and declared his death to be 17th September 2019 leaving landlords at risk of overpayment from Council. A ground 1 possession notice has now been served as well as section 48 for neglect and breaches of tenancy agreement but sadly her counterclaim can go eitherway since Community Law solicitors have exaggerated all sorts of information to make her case sound good. Shame on them for wasting public funds to support a client who has committed benefit fraud with the same public funds. You cant evict her even if you prove to courts that she committed benefit fraud, and is not paying rent and over 8 weeks in rental arrears and occupying a 3 bedroom home alone which she doesn't really need or justify on paper but filling up with 20 guests for 3 days every weekend. The law is too one sided in favour of tenants who have the upper hand over landlords. If you dry clothes on radiators and keep windows closed and cover vents with tape and fill home with 20 guests, leave home empty and cold for 5 months and go abroad then can you Sue landlords for condensation?

31
Guest Avatar
Diana 27th November, 2020 @ 10:28

I’ve been served section 21 notice
The notice period is six months (we expect to be out in March)
In addition to this, my landlord has issued a section 13 notice to increase rent.
Can I refuse this increase or is my only recourse to apply to the tribunal?
Thanks

32
The Landlord Avatar
The Landlord 27th November, 2020 @ 10:39

Hi Diana,

The answer to your question is written in the blog post ("When can a landlord increase rent?" section) - did you read it?

33
Nobody

Nobody

Landlord

Landlord

Tenant

Tenant

Agent

Agent

Legal

Legal

Buyer

Buyer

Developer

Developer

Enthusiast

Enthusiast

Your personal information will *never* be sold or shared to a 3rd party. By submitting your details, you agree to our Privacy Policy.


I want more info on...

Tweet
Share