Buying a home is more difficult than ever, despite what Kirsty Allsopp says.
Thanks to the ballooning housing market and a soaring cost of living (oh hello, higher energy bills!), it can feel as though you have a greater chance of being an X Factor finalist than you have of saving for a deposit.
So it’s no surprise that more than 4.5 million Britons rent their homes, according to the latest Office for National Statistics report.
Renting wouldn’t be so bad if you could put pictures up without losing your deposit, get a pet without asking for permission and make your rent payments each month without your landlord hiking up the price for seemingly no reason.
If your landlord has increased your rent on more than one occasion since you moved in, it’s only natural to be frustrated. You might have lots of questions such as:
How much a landlord can increase rent in a year?
Can I refuse a rent increase?
What are my rights?
Read on to find out how you can handle the situation.
How often can a landlord raise rent?
So, first thing’s first: How often can a landlord increase rent in the UK?
It all depends on your tenancy agreement. When you first decide to rent a flat or house, you will sign a contract with your landlord or the letting agency. Usually, the agreement will include the terms of your tenancy, i.e. how long you are agreeing to take on the lease.
Periodic tenancy
Do you have a ‘rolling contract’ with your landlord? As in, you pay them on a week-by-week or month-by-month basis and you can leave at any time? If so, you have a periodic tenancy.
With a periodic tenancy agreement, your landlord cannot increase the rent more than once a year without your consent.
If they want to increase your rent, they have to give you at least one month’s notice.
Fixed term tenancy
Are you in a ‘fixed contract’ with your landlord where your tenancy lasts for a set period of time such as 6 or 12 months? If so, you have a fixed term tenancy.
In this case, you have more rights than a tenant in a periodic tenancy.
Your landlord can only increase the rent during your tenancy if you agree.
When the contract comes to an end, they will have the opportunity to increase your rent – even if you’re not happy about it.
The landlord must give you sufficient notice. For a year long tenancy, six months’ notice is generally required.
However… there is a catch. If your contract includes what’s known as a rent review clause, your landlord has the right to increase the rent during your tenancy.
The rent review clause must state when this will happen and by how much.
How much can a landlord raise rent in a year in the UK?
Now that you know how often your landlord can raise your rent, let’s talk money.
Frustratingly, there’s no limit on how much your landlord can raise your rent.
However, the government guidelines do state that the increase needs to be “fair and realistic”.
That may sound vague but the guidelines go on to state that the price increase should be “in line with average local rents.”
With that in mind, you may want to compare the cost of similar properties in your area.
Should your landlord propose an extremely high raise, you can challenge them with the facts by presenting the cost of other places near you.
What is a reasonable rent increase?
So, your landlord has suggested a new price… is it fair? According to HomeLet Rental Index, the average rent in the UK is now at £1,064, up 8.5% on the same time last year.
This is a huge increase and there’s a risk it could rise even further in response to increasing energy costs and rising inflation.
If your landlord decides to increase your rent and you believe it’s excessive, compare the increased figure to other properties in the area to see how competitive it is.
Can a landlord increase rent without notice?
It’s everyone’s worst nightmare. You wake up to a text message from your landlord telling you that your rent has gone up… effective immediately. But wait, can they even do that?
The short answer is no, not if you have an agreement in place anyway.
If your landlord does meet the government’s criteria to increase your rent, they have to give you a minimum of one month’s notice when you pay your rent weekly or monthly.
Should you have a yearly tenancy, they need to give you six months’ notice.
Can you get support and advice?
Worried about the increasing cost of living? If you’re nervous that your rent will become unaffordable, there is support, help, and advice out there. Your first port of call may be Citizens Advice where you can get unbiased information from experts.
Additionally, ACORN | Union for the Community is a membership organisation fighting for UK renters’ rights.
You can check out their Renters Manifesto here or get in touch for more information.
