Over recent years, research has shown that tenants are tending to stay in the same properties for longer to avoid having to pay increased rent rates upon moving.
While renting is typically thought of as short-term, Rightmove’s Quarterly Rental Tracker has revealed that 21% of tenancies last a year or less, and one in five landlords reported seeing longer tenancies in their properties. Both of these suggest a change in the way that renters are deciding to live.
On top of this, the Renting Homes (Wales) Act 2016 comes into effect in Wales on December 1st, 2022, which may make it more likely that tenants will stay in their rentals longer. However, this will not make a difference to the rights and obligations applicable in relation to rent increases.
Increasing rent rates are a major cause for concern, currently increasing at the fastest rate ever. Just like other industries when prices inflate, landlords are trying to keep up. This means that they’re regularly increasing the price of rent on their properties, often regardless of how long the tenant has lived there.
Unfortunately, the cost-of-living crisis in the UK is affecting everyone and rent is one of the most heavily impacted aspects. The rental market is also currently at its highest due to the huge imbalance of prospecting tenants and available properties – this in itself is driving the rental rate higher, as well.
Can My Landlord Increase My Rent?
You may well be hoping to hear that, if you’re already tied into a tenancy, your landlord can’t increase your rent. Unfortunately, this is not the case. Landlords usually hold the right to increase your rent, but must give you fair warning beforehand.
The exact situation around rent increase should be outlined in your tenancy agreement. In fact, if your tenancy agreement does not have a rent review clause, your landlord cannot increase rent during your fixed tenancy term. However, they will usually have the right to do this at the end of your term.
What Happens If My Landlord Wants to Increase My Rent?
If there is no rent review clause in your tenancy agreement or you disagree with the rent increase your landlord proposes, they may serve you with a section 13 rent increase form.
A section 13 notice can be served once every 12 months and requires a minimum notice period of one month for tenancies where the rent is paid monthly. Once this notice has been served, if the tenant accepts the increase, they must pay the new amount on the next scheduled rent day. If a tenant does not respond, this is taken as an agreement to the new rent price as above.
What if I Disagree with the Rent Increase?
If a tenant refuses to agree with the new rent price following a section 13 notice, they may challenge it depending on the circumstance, for example, if the increase in rent is unreasonable.
You will need to apply to challenge the increase before the date that the new rate is due to start, which you can find on your section 13 notice. The tribunal will be made up of two or three professionals who will assess the case and decide whether the rent increase is fair.
If a tenant ignores the section 13 notice and refuses to pay the new amount without applying to challenge it, they may receive a section 21 notice, also known as a notice to quit. This is the first step of the eviction process and is perfectly legal provided the landlord gives at least two months’ notice.
Keep Track of Your Rights with Howells
At Howells, we have a team of experts in Landlord and Tenant Law who can support you should you ever be confused or concerned about your renting rights. Simply get in touch with Howells Solicitors today.
