How Much Can My Landlord Increase My Rent in the UK?

In the UK, how much a landlord can increase your rent depends on several factors, including the type of tenancy agreement, local market conditions, and relevant legal protections. Below is a breakdown of the rules and limits landlords must follow when increasing rent in the UK:

1. Assured Shorthold Tenancies (ASTs)

The majority of private renters in the UK have Assured Shorthold Tenancies (ASTs). In this case, rent increases are regulated, and there are a few ways a landlord can raise the rent legally:

• During a Fixed-Term Contract: Rent cannot be increased unless the tenancy agreement includes a clause that allows for rent reviews or both the tenant and landlord mutually agree to the increase. Without this, the rent remains the same throughout the term of the contract.

• After the Fixed Term Ends (Periodic Tenancy): If your fixed-term tenancy ends and becomes a rolling or periodic tenancy (month-to-month), the landlord can raise the rent, but they must follow these rules:

  • Provide at least one month’s written notice for monthly periodic tenancies (or longer for longer tenancy periods, e.g., 4 weeks for weekly tenancies).
  • The increase must be fair and in line with local market rents.

• Rent Review Clause: If your tenancy agreement includes a rent review clause, the terms of that clause must be followed, and the increase should reflect the market rate.

2. Rent Increase by Agreement

A landlord and tenant can mutually agree on a rent increase at any time. However, the tenant is not obligated to accept any increase proposed during a fixed term unless explicitly stated in the contract. If the tenant agrees, the new rent can take effect immediately.

3. Section 13 Notice for Periodic Tenancies

Landlords can use a Section 13 notice to increase rent in a periodic tenancy. This allows landlords to raise rent once per year, but they must:

• Give at least one month's notice for monthly tenancies, or six months' notice for yearly tenancies.
• Ensure that the proposed increase is fair and reflects current market conditions.
• The tenant has the right to challenge an unreasonable increase by applying to the First-tier Tribunal (Property Chamber), which will decide if the proposed rent is fair.

4. Social Housing Tenancies

If you are renting from a local authority or a housing association, different rules apply:

• Rent increases are often regulated by government policies.
• Social landlords must give tenants at least 28 days' written notice of any rent increase.
• In most cases, rent can only increase once a year, and the amount is usually capped (often linked to inflation measures such as the Consumer Price Index).

5. How Much Can a Landlord Increase Rent?

There is no fixed limit on how much a landlord can increase rent in the private sector, as long as the increase is:

• In line with current market rates.
• Fair, reasonable, and not discriminatory.
• Subject to any terms in the tenancy agreement or rent review clauses.

For social housing, rent increases are often capped and may be limited to CPI + 1% per year, depending on government regulations.

6. Challenging a Rent Increase

If you believe the rent increase is unfair:

• Negotiate with your landlord to see if a compromise can be reached.
• Apply to the First-tier Tribunal if you think the increase exceeds the market rate (for Section 13 notices). The tribunal will assess whether the new rent is appropriate.
• Seek advice from organisations like Citizens Advice or Shelter if you’re unsure about your rights.

How Fraser Bond Can Help

At Fraser Bond, we understand the complexities of the rental market and provide expert guidance for tenants and landlords alike. Whether you're a tenant facing an unexpected rent increase or a landlord wanting to ensure fair and transparent rental agreements, our team can assist with tailored advice, ensuring all parties understand their rights and obligations.