Rent Going Up? What are Your Rights?

by from money.co.uk, Last Updated: 26 November 2014

Being told that your rent is going up can be a real sucker punch, especially if you're already living to a tight budget. But are you really left with no choice but to accept if your landlord ups the price?

House Made Of Coins

With thousands struggling to get on the property ladder there's greater demand for rental homes. As a result private rents are creeping up.

But where do you stand if your landlord wants to put up your rent?

Here is a breakdown of your rights as a tenant:

Can my landlord put up the rent?

Landlords have the right to charge as much as they like for their property. However, there are some restrictions as to what they can do and when, especially when it comes to upping your rent.

Firstly, if you have signed a fixed term tenancy agreement - this will usually be for 6 or 12 months - then your landlord cannot increase the rent during that time without your consent.

The only exception to this is if rental reviews were written into your original tenancy agreement. If this is the case it will detail how often the rent can be changed and how the new level will be set.

You should refer to your original rental agreement if you are unsure if you agreed to rental reviews when you signed the contract.

If you're looking to rent a new property this is always something you should check and query before signing.

However, if you have come to the end of a fixed term lease and haven't signed a new contract your landlord can issue a formal 'notice of increase' giving you at least two months' notice that they're putting up your rent.

Your landlord is legally entitled to do this as they only agreed to fix your rent at its current level for the duration of your fixed term tenancy agreement.

What can you do?

You don't have to automatically accept the increase and you can negotiate with your landlord, or ultimately appeal to an independent committee against the decision.

Negotiate

Before complaining about a proposed rent increase you should try and negotiate directly with your landlord, are there any ways you can agree on a new price which suits both parties?

Compare prices elsewhere

If you are faced with a rent hike you should look at how much a similar property would cost to rent in the same area.

Websites such as Rightmove and Find a Property both list properties from a wide range of local estate agents and are a good place to begin assessing what else is on the market.

If you find that there are similar properties available for less than what your landlord is asking for you can use this as a negotiating tool to lower your rent.

Ask for extra benefits

If your landlord is insistent that your rent be set at a higher level then you can try and soften the blow by negotiating the inclusion of some household bills.

Some landlords may be willing to include utility bills such as water, gas and telephone in your agreement or even more luxury bills, such as broadband or digital TV in return for an increase.

Ask for work to be done

A proposed rental increase from your landlord may also be an opportunity to get any maintenance or improvement work done to your home.

There is nothing to stop you asking for jobs to be completed before you start paying the higher rent your landlord wants.

Can I complain?

If you feel that the increase in rent proposed by your landlord is unfair and are unable to come to an agreement with them, you can refer your case to your local Rent Assessment Committee.

A Rent Assessment Committee can act as an independent arbitrator and decide a fair maximum rent for your property.

Be warned though, the committee can set the maximum higher than the amount originally proposed by your landlord if they feel that's what you'd pay to rent a similar property in the same area.

There's also a 1 month time limit on referrals - so submit your case as soon as possible - plus if you start paying the higher rent rate you won't be allowed to refer your case, as it's treated as you accepting the rent increase by the Rent Assessment Committee.

The Exceptions

Not all tenants are protected by the same laws and while the above applies to most rental properties there are some exceptions if you have a different type of rental agreement in place.

Live in landlord
If you are living as a lodger in your landlord's house then your rights to refuse an increase in rent are much more limited. In most cases it will simply be a case of pay up or pack your bags.

For more information on the rights of live-in tenants visit the Direct gov website.

Protected tenants
If you moved into your rental property before 15th January 1989 then you may be classed as a 'protected tenant'. This would mean you have more rights if your landlord decides they want to charge more rent. They cannot simply inform you of an increase but instead must ask an independent rent office to set a fair rent for your property for the next 12 months.

If you believe that you may be a 'Protected tenant' or you are unsure of what type of tenancy you hold you should refer to your rental contract or visit the Direct gov website for more information.

Alternatives if rent negotiations fail

If your landlord won't negotiate, or you can't afford the increased rate then you may want to consider the following:

Share your property

If your landlord is insistent that your rent is increased and you want to stay in your home you could consider sharing your property and splitting the rent.

However, before you simply invite a friend or family member to move in, you will need to speak to your landlord and get their agreement and discuss if a new rental contract including the new tenant is required.

Seek help

If you are on a low income and will struggle to pay your new rent but don't want to move you may be able to get some financial help.

If you are eligible you may be able to claim housing benefit or local housing allowance to help pay for your rent.

To check whether you qualify visit the Direct gov website, each local housing authority has different criteria for housing benefit so you will need to select your local authority from the list to check if you qualify.

There are also a number of charities - such as Shelter and the Citizens Advice Burea - that can help you to review your options if you're facing an unaffordable rent hike.

Moveout

If you are faced with a rent hike and can't agree a compromise with your landlord then you may need to look elsewhere.

Finding somewhere nearby that is a similar quality, size, and price would be ideal, however you may have to look further afield or at different types of properties to keep your rent down.

Property sites including Rightmove and Find a Property allow you to search local estate agents for listed properties that meet your needs.

Consider buying

Your landlord upping the rent may provide a good opportunity to review your long terms plans.

If you would, in ideal circumstances, like to purchase a property read our guide Should I buy or keep renting? or follow our Action Plan How to buy a house for help deciding what's best for your situation.

However, remember that a mortgage is a much bigger commitment than renting so you will need to make sure you can afford the repayments for the foreseeable future before signing on the dotted line.

Find out more in our guide Rip off letting agents: 7 easy ways to protect yourself.

Responses

add your response here

What if the real estate haven't informed me the rent has gone up?

by richel, 27 Aug 2013

Hi Richel,

You should check your contract in the first instance, it should specify if and when your landlord can increase the rent and the amount of written notice they should give you.

If they have failed to give you the notice stated in your contract you can contest the increase if you wish.

by Martin from money.co.uk, 27 Aug 2013
add a comment

Hi There,
Above you state that 'However, if you have come to the end of a fixed term lease and haven't signed a new contract your landlord can issue a formal 'notice of increase' giving you at least two months' notice that they're putting up your rent.' Are you sure it is two months notice? Section 13 of the Housing Act says that in those cases of a statutory periodic tenancy the landlord issues the Form 4b with ONE month notice for a rent increase.

by Olivio, 21 Nov 2013

Sorry but the info on here is 'light.' It doesn't take much searching online to find the legal position. If the rent increase is stipulated in the agreement the landlord is in a strong position but the tenant can dispute through legal channels. If no clause exists and the tenants haven't signed any documentation agreeing to rent increases, then the Form 4b in Section 13 of the Housing Act must be followed which outlines the minimum Notice that must be given. Even then the tenant can dispute the rent increase if they believe it exceeds market rates.

by sfox76, 29 Nov 2013

Hi, Our tenancy ended at the beginning of this year and our letting agent wanted to charge us £200 for a renewal fee and increase our rent to £825 (from £800). I argued the renewal fee and they said ok £100 instead. The letting agent then rang me after hours out work to say if I was you I wouldn't pay the fee, it then goes onto a rolling month by month contract, as long as you pay the rent, the landlord isn't going to kick you out. I said I would think about it and waited for the new tenancy agreement to arrive in the post to sign something to say I was ok with the rent increase and wanted to renew for another year. It never did. We received a letter to say that the rent would go up but nothing for us to sign to say we were happy with it. Then this weekend, we receive another letter saying that from May this year our rent will go up to £900 per month! So well played to the letting agent for advising me not to renew so that they could get an extra £100 per month on the rent. However, as we never received a tenancy renewal form to sign and return does anyone know where we stand? I was all for paying the £100 renewal fee but they never told me how to pay it and I never was sent anything to sign. I feel completely ripped off by this letting agent and I'd rather move out than pay £100 extra a month! Please help! Thanks!

by Sadpanda, 22 Feb 2014

so the landlord wants to raise my rent how much notice does he have to give me or should he give me or what is required

by steph7405, 4 Apr 2014

We have rented our flat above a shop for 8 years with the agreement that I undertake the internal maintenance repairs as nessesary, We have never had a rent increase in that period and together with internal maintenance I have also landscaped the garden and installed a Tarmac drive where before it was a scrubby stone and mud one. The landlord is considering selling the property and we have just installed a new kitchen and upgraded the bathroom. I am expecting at best a modest rent increase should they decide to renew my shorthold tennancy. If the rent is increased out of all proportion now that I have improved the property do I have any rights of redress with regard to work done and Money spent.

by csbbro, 5 Apr 2014

My dad was a beneficiary I n a will that states he can l I've in his property till he dies or moves on, the houses were left to a charity who have now sold them the new landlord has sent a letter saying rents will increase by 3 xs the monthly amount he currently pays, which is more than his monthly pension. What are his rights

by wendyboo, 5 months ago

My tenant has only been paying 60P month for 40yrs (don't ask), no tenancy agreement. My daughter has inherited the property and now wants to increase the rent to a normal amount or even a little under the normal amount. Can she do so?

by tecup, 1 week ago
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