Private rented sector landlords can increase rent once every 12 months.
- A rent increase must not take effect in the first year of a tenancy.
- A rent increase must not be within 52 weeks of a previous increase.
- The landlord must serve a Form 4A (under Section 13 of the Housing Act 1988), giving tenants no less than 2 months’ notice: Landlord’s notice proposing a new rent for assured tenancies in the private rented sector
- The rent increase must take effect at the start of a rental period.
- If the tenant does not appeal, the rent increase is legally binding.
Appeals
- Tenants can appeal the rent increase via the First-tier Tribunal, no later than the day before the rent increase takes place.
- The tenant completes an MR 1 form (which asks for details of the property), the cost payable by the tenant is £47.00: Apply for an open market rent determination – GOV.UK
- The First-tier Tribunal will consider evidence given by the landlord and the tenant and establish the market rent. If the rent increase is established to be higher than market rent, the tribunal will set the rent at what they deem to be the market value. If the proposed rent increase is deemed to be lower than the market rent, the proposed rent increase will stand and will be due from the following rent due date (it will not be backdated). Note – the tribunal can defer the rent increase start date by up to two months if the normal date would cause the tenant hardship.
It has been confirmed that the Valuation Office will be taking over the rent increase appeals decision task from the First-tier Tribunal, no timeframes have been confirmed.
Evidence of market rents for similar properties in the area will be key!!
Sources to Prove Rent Increases are Below or Equal to Market Rent
From the Office for National Statistics, see Section 7, you can select the bedroom numbers and the property location: Private rent and house prices, UK – Office for National Statistics
OpenRent Rent Calculator, type in the address of the property and the number of bedrooms/bathrooms: Rent Calculator: Find the Rental Value of Your Property | OpenRent
Property advertising platforms, this list is not exhaustive. See live listings to compare rents:
Rightmove – UK’s number one property website for properties for sale and to rent
Currently listed rentals anywhere in the UK | Mouseprice