When can a landlord increase the rent?
1) During the fixed term
By mutual agreement
All parties (landlords and tenants) can agree to a rent increase during the tenancy.
If you do not agree, the rent can only be increased when the fixed term ends (see further below).
If all parties do agree, a written agreement should be prepared by the landlord.
This will need to include:
- The new agreed-upon rent increase
- The start date for the rent increase
Both the landlord and the tenant will need to sign and date this letter. Both parties should retain a copy of the same for their records. Once the new rent is paid once, this will be the ongoing rent for the tenancy.
Rent Review Clause
The rent can be increased within the fixed term of the tenancy if the tenancy agreement has a ‘rent review clause’ which allows a this.
A Rent Review clause will need to state:
- When the rent increase will take place
- How much notice you’ll receive
- How much the rent will increase
Not all tenancy agreements will have a rent review clause included - so we’d recommend having a read through your tenancy agreement to see if a rent review clause is applicable. The OpenRent standard AST does not include a rent review clause.
2) When signing a renewal
If the fixed term has ended, your landlord can increase the rent when you sign a new tenancy agreement. It is up to you whether you sign the tenancy renewal.
3) Periodic tenancy
Section 13 Notice
If the fixed term has ended and you continue to rent, your tenancy will have lapsed into a periodic tenancy. For periodic tenancies, your landlord has to give you a Section 13 notice before they can increase your rent without your prior agreement.
If the rent is paid at monthly intervals, the landlord will need to give at least one month's notice of the increase in rent, and the new rent must begin on the beginning of a rental period, i.e. the date when you pay your rent each month. Notices can usually only be served once per year. If the tenant disagrees with the new proposed rent, they can refer the matter to the First Tier Tribunal.
Section 13 cannot be used:
- Where a rent review clause is included in a contractual periodic tenancy.
- During a fixed term tenancy.
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.