Rent increases for private tenants

The landlord and tenant agree the amount of the rent at the start of a private tenancy. Private assured and assured shorthold tenants pay a ‘market rent’. 

The market rent depends on the conditions in the local area. The landlord and tenant can agree to a rent that is higher or lower than equivalent properties in the area.

How long the rent is set for 

Private tenancies can be fixed-term or periodic. This means they can: 

• start off with an initial fixed term and become periodic when it ends 

• start off with an initial fixed term with another fixed term afterward if the landlord and tenant sign a new tenancy 

• start as a periodic (rolling) monthly or weekly tenancy

The rent is normally set at the start for the duration of a fixed term. The landlord cannot decide to increase the amount of the rent in a fixed term without the tenant's agreement unless they use a rent review clause.

The amount of rent for a periodic tenancy can be changed using a process in the Housing Act 1988. This allows them to impose a rent increase on the tenant.

Disputes about the amount of the rent

The amount of rent is set out in the written tenancy agreement if there is one.  

If there is no written agreement, the amount can be agreed verbally. Often there is an exchange of text messages or emails that show the amount of rent that has been agreed. These messages form part of the agreed contract terms. 

Where there is no written evidence at all, including by text or email, the landlord might say the amount of rent is higher than the tenant agreed to. Tenants who have paid a set amount on a set date each month have compelling evidence that is the rent they agreed with the landlord. 

Right to a written statement of the rent amount

Assured shorthold tenants have the right to a statement of certain tenancy terms which they do not already have in writing.[1]

Assured shorthold tenants without a written agreement can ask their landlord for a statement of the rent and any rent review clause. A failure to provide this statement is a criminal offence.

Tenancy terms and conditions usually stay the same throughout a fixed term. This includes the amount of rent that has been agreed. Changes to the rent during the fixed term are governed by contract law.  

The landlord can only increase the rent in the fixed term if either: 

• the tenant agrees to the increase 

• there is a rent review clause in the tenancy agreement 

Tenant agrees to the increase 

Tenants might agree to a rent increase during the fixed term. Changing the rent part way through a fixed term is varying the contract. This might happen if the landlord has agreed to do something in return, like offer a new fixed-term agreement when the current one ends.  

A contract like a tenancy agreement can be varied: 

• in writing 

• verbally 

• by conduct 

Paying the increased rent is generally enough to show the tenant has accepted the new terms by their conduct.  

A tenant who has paid the increased amount but wants to challenge it later might be able to argue that the contract has not been varied properly. This can be done by negotiating personally with the landlord or with the help of a legal adviser or a solicitor. A valid contract variation usually requires each party to the agreement to get some benefit from it. This is called consideration. If there is no consideration, a variation can be done by executing a deed with the new terms.

Rent review clause in the agreement 

A rent review clause in the tenancy agreement might say the landlord can review the rent once per year and increase it. It does not need to state how much the rent can increase by or how the increase is calculated.  

Tenant signs a new tenancy agreement 

The amount of rent can be changed if the tenancy agreement is completely replaced with a new agreement. This might happen during the fixed term or when it is due to come to an end.

Tenants who enter a new fixed-term tenancy with their landlord are bound by the new tenancy terms and conditions. 

A periodic tenancy can be either contractual periodic or statutory periodic.

A contractual periodic tenancy is a rolling tenancy agreed upon by the landlord and tenant at the outset. For example, a weekly, monthly, or quarterly tenancy. It often starts at the end of a fixed term by agreement between the landlord and tenant but it can start as a periodic tenancy with no fixed term.

A statutory periodic tenancy starts automatically on the expiry of a fixed-term assured or assured shorthold tenancy if the initial tenancy agreement does not specify what happens when it ends.

How a landlord can increase the rent

The landlord can increase the rent of either type of periodic tenancy by:

• agreement with the tenant

• using the section 13 procedure

The landlord of a contractual tenant can use a rent review clause if there is one.

The landlord of a statutory periodic tenant can use a process in section 6 Housing Act 1988 to vary any of the terms of the tenancy, including the rent.

Tenant agrees to the increase 

Tenants might agree to a rent increase during a contractual or statutory periodic tenancy.

A tenancy agreement can be varied: 

• in writing 

• verbally 

• by conduct 

Paying the increased rent is generally enough to show the tenant has accepted the new terms by their conduct.  

Contractual periodic tenancy rent increases

The landlord can increase the rent of a contractual periodic tenancy by giving the tenant notice in the prescribed form under section 13 Housing Act 1988.

They can only use this process if there is no rent review clause in the tenancy agreement. If there is a rent review clause, the landlord must use the process set out in it.

A landlord is likely to use the section 13 process if the tenant does not agree to a rent increase.

A landlord cannot give the tenant a section 13 notice during the first 52 weeks of a contractual periodic tenancy. The 52 weeks run from the start of the tenancy and include the fixed term, if there was one.[2] The notice must give the tenant at least one month's notice of the increase, for monthly or weekly tenancies.

A landlord can only increase the rent using the section 13 process once every 52 weeks.[3]

The tenant can challenge the section 13 rent increase in the First-tier Tribunal (Property Chamber).

Statutory periodic tenancy rent increases

Statutory periodic tenancies do not have a rent review clause. Any rent review clause in the fixed term tenancy has no effect.

The landlord can increase the rent of a statutory periodic tenancy by giving the tenant notice in the prescribed form under section 13 Housing Act 1988.

A landlord is likely to use the section 13 process if the tenant does not agree to a rent increase.

A section 13 notice can be given during the fixed term to take effect once the tenancy becomes a statutory periodic tenancy.[4] The notice must give the tenant at least one month's notice of the increase, for monthly or weekly tenancies.

A landlord can only increase the rent using the section 13 process once every 52 weeks.

The tenant can challenge the section 13 rent increase in the First-tier Tribunal (Property Chamber).

Tenancy variations during the first 12 months

Landlords or tenants can propose changes to a statutory periodic tenancy during the first 12 months on a prescribed form. This process set out in section 6 Housing Act 1988. Section 6 is not used as often as the section 13 process. It can change any of the tenancy terms.

The landlord or tenant can apply to the First-tier Tribunal (Property Chamber) if the landlord and tenancy cannot agree on the new terms.

Form of the rent increase notice

Section 13 and section 6 notices must be given on a prescribed form. Form 4 is used for section 13 increases. Form 1 is used for section 6 variations.

A form that is substantially to the same effect as the prescribed form is likely to be valid.[5]

The tenancy agreement might specify how notice must be given. Some tenancies state that notices must be given in line with the Law of Property Act.[6] That means the notice must be:

• in writing

• addressed to the tenant

• sent to or left at the last known address of the tenant

Read more about rent increases using section 13 and section 6 notices and how to challenge rent increases on Shelter Legal.

Use of section 21

A section 13 notice or referral to the First-tier Tribunal does not prevent a landlord from giving the tenant a section 21 notice.

Fixed-term or contractual periodic tenancies can contain a rent review clause in the written tenancy agreement.

A rent review clause in the tenancy agreement means the landlord cannot increase the rent using the statutory process in section 13 Housing Act 1988.[7]

Statutory periodic tenancies that arise after a fixed term expires cannot contain a rent review clause. Any rent review clause in the original tenancy does not apply.[8]

Wording of a review clause

A rent review clause must include the mechanism for increasing the rent. It does not need to specify when and by how much the rent will increase.[9] A clause that says something like 'the rent will be reviewed by the landlord in April of each year, and the landlord will give the tenant four weeks' notice of the new rent' is enough.

Unfair contract terms

A rent review term that does not comply with the requirements of consumer protection legislation might be an unfair term. An unfair term in a tenancy is one which creates an imbalance in the relationship between the landlord and tenant to the detriment of the tenant.

Landlords can increase rent which includes bills and council tax if they follow the general rules for rent increases.

The landlord cannot increase the agreed rent without following the correct process even if the bill amounts have gone up.

The tenancy agreement might contain terms for how the amount of the bills charged to the tenant is reached. If it is calculated separately from the rent, the landlord might be able to increase the amount in line with current prices.

The landlord must not make a profit from paying the water and fuel bills. The maximum price at which gas or electricity can be charged is the same price as that paid by the landlord, including any standing charges.

Ofgem has guidance for landlords who provide fuel to their tenants.

Fair usage terms

The tenancy agreement might specify an amount of fuel or utility use after which the tenant must pay extra. If the amount is given as a sum of money, the tenant might have to pay extra even if their usage has not increased.

Council tax bills

A tenancy agreement that includes council tax in the rent might state that the rent will increase in line with the rate of council tax. If it does not, the landlord must use a rent review clause or the section 13 procedure to increase the rent if the tenant does not agree.

Tenants who live in private rented accommodation are usually liable to the local authority for their own council tax. It is better for the tenant to pay their own council tax bills to ensure the payments are made.

The landlord is liable if the property meets the definition of an HMO for council tax purposes.[10]

Some private tenants pay service charges for repairs and maintenance.

The tenancy agreement sets out what the tenant is liable to pay for service charges. The tenant does not have to pay for anything that is not set out in the agreement.

Service charges can include amounts for things like:

• management costs

• improvement works

• a caretaker or porter

• communal services like heating, cleaning, or garden maintenance

There are controls on variable service charges imposed by the Landlord and Tenant Act 1985. Services charges must be reasonably incurred and for work or services of a reasonable standard.

The landlord must make a written demand of the tenant to cover service charges.

The tenant can challenge any service charges that are not reasonable by applying to the First-tier Tribunal (Property Chamber).

Find out more about statutory control of service charges on Shelter Legal.