Understanding Rent Increases
Rent increases refer to occasions when your landlord asks you to pay more rent than you currently do. Landlords may decide to raise rent for various reasons, such as covering increased maintenance costs, reflecting changes in the local property market, or after making improvements to the property.
In the UK, there are strict rules about when and how rent can be increased. The process depends on the type of tenancy you have. For example, during a fixed-term tenancy, your rent can usually only be increased if you agree to it or if your contract includes a clause allowing increases. Once the fixed term ends and your tenancy becomes periodic (rolling from week to week or month to month), landlords can propose a rent increase, but they must follow the correct legal procedure.
The Housing Act 1988 sets out the main rules for rent increases, especially for assured and assured shorthold tenancies. Typically, landlords must provide written notice – often at least one month for periodic tenancies – before any increase takes effect. There are also limits on how often rent can be increased, usually no more than once a year unless the tenant agrees otherwise.
Understanding your rights is crucial. As a tenant, you have the right to challenge unfair rent increases and to be properly informed about any proposed changes. If you’re unsure about the process or want to know more about your responsibilities, see our guide to paying rent for further information.
When and How Can Landlords Increase Rent?
Landlords in the UK can only increase rent under certain conditions, and the process depends on the type of tenancy you have.
For a fixed-term tenancy (where your contract runs for a set period, like 12 months), your landlord cannot normally increase the rent until the fixed term ends, unless your tenancy agreement includes a specific clause allowing for a rent review during the term. Always check your agreement for any such clauses.
If you have a periodic tenancy (rolling week-to-week or month-to-month), your landlord can propose a rent increase, but they must follow proper procedures. Typically, this means giving you written notice. In England, for example, landlords must give at least one month’s notice for a periodic tenancy if rent is paid monthly, or six months’ notice if rent is paid yearly. In Wales, the minimum notice is two months. These rules are set out in the Housing Act 1988.
Landlords usually propose a rent increase in writing, either through a formal notice or by asking you to sign a new contract. If you do not agree to the new rent and no arrangement is reached, your landlord may use a formal process (such as serving a Section 13 notice in England and Wales) to propose the increase.
If you believe the proposed increase is unfair, you have the right to challenge it. The process for disputing a rent increase and checking its legality is explained in more detail on our dedicated guides.
Remember, it’s important to review your tenancy agreement first, as it may outline specific terms about how and when rent can be increased.
Notice Requirements for Rent Increases
When a landlord wants to increase your rent, they must follow specific legal notice requirements. In most cases, landlords must give you written notice before any rent increase takes effect. The amount of notice required depends on the type of tenancy you have:
Assured shorthold tenancies (ASTs): If you have a periodic tenancy (rolling weekly or monthly), your landlord must give you at least one month’s notice in writing before increasing the rent. For yearly tenancies, at least six months’ notice is required. This is set out in the Housing Act 1988.
Fixed-term tenancies: Rent can usually only be increased if your tenancy agreement allows it, or at the end of the fixed term. Otherwise, both you and your landlord must agree to any change.
The notice must clearly state the new rent amount, the date it will start, and be served in the correct way – usually in writing, either by letter or a formal notice such as a section 13 notice for periodic ASTs.
If you receive a rent increase notice, carefully check that your landlord has followed the correct procedure and given you enough notice. If you are unsure about the legality of the notice or believe it is unfair, you have the right to challenge it.
Your Rights If You Think a Rent Increase is Unfair
If you believe your landlord’s proposed rent increase is unfair, you have the right to question or challenge it. In the UK, landlords must follow specific rules when increasing rent, and any rise should be reasonable and in line with your tenancy agreement or local market rates. If you feel the increase is excessive or not in line with the proper notice period, you can take action.
You can start by discussing your concerns with your landlord and trying to negotiate a more reasonable amount. If this doesn’t resolve the issue, there are formal processes you can follow, such as asking a tribunal to review the increase. The law protects tenants from unfair rises, especially under assured shorthold tenancies, where you can apply to a First-tier Tribunal if you think the rent is above market value.
To understand each step in detail and find out how to begin challenging a rent increase, see our dedicated guide.
If you’re unsure about your rights or the process, it’s best to seek advice early. For further information and practical tips, you can also read this comprehensive guide on Tenants’ Rights from MoneySavingExpert.
How to Check If a Rent Increase Is Legal
Before a landlord can legally increase your rent, certain rules must be followed under UK tenancy law. The increase must comply with your tenancy agreement, and landlords are usually required to give proper written notice – typically at least one month for periodic tenancies, or longer if your agreement states so. Rent increases must not be discriminatory or used as a form of retaliation, and they cannot be imposed more than once a year for assured shorthold tenancies. If the landlord fails to follow the correct process, such as giving insufficient notice or increasing rent for unlawful reasons, the increase may be considered illegal.
It’s important to check whether your rent increase meets all legal requirements. This includes reviewing your tenancy agreement, understanding notice periods, and ensuring the landlord is not breaching any part of the Rent Act 1977, which still affects some tenancies today. If you’re uncertain about any aspect, you can check if a rent increase is legal using our detailed guide, or seek advice from a housing specialist to protect your rights.
What to Do If You Cannot Afford a Rent Increase
If you’re struggling to afford a rent increase, it’s important to act quickly to protect your tenancy and avoid falling into debt. Start by reviewing your new rent amount and your budget to see where you stand. If you think the increase is unfair or not in line with your tenancy agreement or the law, you may be able to challenge it – see our guides on checking the legality of rent increases for more information.
If the new rent is genuinely unaffordable, consider what financial support might be available. You may be eligible for Housing Benefit or Universal Credit to help cover your rent, especially if you’re on a low income or receiving certain benefits. Local councils may also offer discretionary housing payments in some circumstances.
Don’t ignore the problem – if you’re worried about paying your rent, speak to your landlord as soon as possible. Explaining your situation could help you agree on a payment plan or even negotiate the increase. Open communication can prevent misunderstandings and may make it easier to find a solution.
For more practical advice and links to support services, visit our page on help with paying rent. If you do fall behind, it’s important to understand your options and rights around unpaid rent (rent arrears), and to seek help early to avoid the risk of eviction.
Related Topics to Understand Your Housing Costs
Understanding your housing costs goes beyond just your rent payments. Several other factors can impact what you pay each month and how manageable those costs are. For example, it’s important to be aware of council tax, which is a separate charge set by your local authority. Depending on your circumstances, you might be eligible for council tax reductions, which could help lower your overall expenses.
If you experience pay cuts or a change in your income, this can affect your ability to keep up with rent and other bills. Knowing your rights and the support available can make a significant difference if your financial situation changes.
It’s also helpful to have a good understanding of your general rights and responsibilities when renting a property. This includes knowing what your landlord can and cannot do, how to handle disputes, and where to turn for advice. By exploring these related topics, you can be better prepared to manage your housing costs and protect your tenancy.
