Rent Increase During Fixed-Term Tenancy

If a landlord attempts to increase rent during a fixed-term tenancy without a rent review clause, the tenant may not be obliged to pay the increased amount. It is worth checking the tenancy agreement carefully for any clause that permits rent reviews during the fixed term. If the fixed term has ended and the tenancy has become periodic (rolling), the landlord can propose an increase but must generally follow the procedure under section 13 of the Housing Act 1988, which requires serving a formal notice giving at least one month's notice for monthly tenancies. Tenants who believe a proposed increase is excessive may refer it to the First-tier Tribunal (Property Chamber), which can determine a market rent. The tribunal can only be used if the section 13 process was followed — it does not apply to rent review clauses in fixed-term agreements.

Common situations include: a landlord demanding a rent increase partway through a fixed-term tenancy, receiving a rent increase notice after the fixed term has ended, the landlord asking the tenant to sign a new agreement at a higher rent, being told the rent is increasing with very little notice, a landlord threatening eviction if the tenant does not agree to the increase, and being unsure whether a rent review clause in the agreement is enforceable.

Section 13 of the Housing Act 1988 provides the mechanism for landlords to increase rent for assured and assured shorthold tenancies during a periodic tenancy. The landlord must serve a notice in the prescribed form (Form 4), giving at least one month's notice for monthly tenancies or six months' notice for yearly tenancies. Section 14 of the Housing Act 1988 allows tenants to refer the proposed increase to the First-tier Tribunal (Property Chamber), which will determine the rent at which the property might reasonably be let on the open market. During a fixed-term tenancy, rent can generally only be increased if the tenancy agreement includes a rent review clause.

People facing a rent increase often consider: checking whether their tenancy agreement contains a rent review clause, verifying that the landlord has followed the correct legal process, comparing the proposed rent with similar properties in the area, referring the increase to the First-tier Tribunal if the section 13 process was used, negotiating with the landlord for a smaller increase, and seeking advice from Citizens Advice or Shelter about their specific situation.

Common mistakes include: agreeing to a rent increase without checking whether the landlord is legally entitled to impose one during the fixed term, not realising that paying the increased amount could be treated as acceptance of the new rent, missing the deadline to refer a section 13 increase to the tribunal, not checking comparable rents in the area before agreeing, and assuming that any rent increase the landlord proposes is automatically lawful.