There are plenty of good things about renting, but most renters - and lots of landlords - will agree that rent increases aren’t one of them.
Aside from feeling quite unfair, a rent rise can be an unwelcome dent to your budget. Probably the last thing you need right now.
But landlords have the right to increase your rent from time to time, even if they’re reluctant to do so.
The good news is that there are laws in place to make sure rent rises are fair and you don’t end up paying over the odds.
So let’s go through when your landlord can increase your rent, how much they can increase it by and the steps you can take to handle a rent rise.
In this guide:
Can my landlord increase my rent?
Before we look at how much a landlord can increase rent by, it’s worth knowing when they’re allowed to do it in the first place.
All landlords are allowed to increase rent at one time or another, but how and when depends on what’s in your contract and what type of tenancy you have..
Remember that your landlord must have your permission to increase the rent. This can be in the form of a rental review clause in your contract or by your written agreement.
When can my landlord increase my rent on a fixed-term contract?
Your landlord can increase your rent during a fixed-term tenancy if the rental review clause in your rental contract says so.
This clause should set out exactly how and when your landlord can increase the rent within the fixed term and how much notice they have to give you.
If your landlord is proposing a rent increase that is not in your contract, they must get your agreement in writing - and you don’t have to agree to a rent rise during your fixed term.
If you don’t agree, they can only increase the rent once the fixed term ends and you move onto a rolling contract.
When can my landlord increase my rent if I'm on a rolling contract?
Again, you might have a rent review clause in your contract - in which case, that’s what you have to go by.
But many rolling contracts do not contain this clause, and instead your landlord can serve you a Section 13 notice to notify you about a rent increase.
A section 13 notice is a government form that gives you notice of a rent rise and can only be used once per year. That means your landlord can increase your rent once a year if you’re on a rolling contract.
How much can my landlord increase my rent by?
There’s no set number or percentage, but your increased rental rate must be close to rents for similar properties nearby.
The government’s guidance says:
For example, if you’re renting a two bedroom flat for £800 but similar flats in the area are renting for £1,000, it’s fair to expect a landlord to ask for the £200 per month increase.
But a proposed jump to £1,200 for this flat usually wouldn’t meet the ‘fair and realistic’ standard, so you’d be within your rights to challenge it.
Also, your landlord must get your permission if they want to increase the rent by more than previously agreed in your contract.
How much notice should I get before a rent increase?
If your rent review clause sets out the notice period before a rent increase, your landlord must stick to this.
Otherwise, they must give you a minimum of one month’s notice if you pay rent weekly or monthly. If you have a yearly tenancy, they must give you 6 months’ notice.
Step by step: what to do if your landlord wants to increase your rent
1. Check your rental contract for a rent review clause
The first thing to do is check if you have a rent review clause in your rental contract.
If you do, this will set out the process your landlord must follow to increase your rent.
Remember, if you’re on a fixed term contract your landlord can only increase your rent in line with the rent review clause. If there’s no clause in there, they need to get your agreement in writing - and you don’t have to agree.
The wording of the clause can vary, but it might not be specific about the level of increase. It might say something like:
“The landlord will review the rent in January each year and give the tenant one month’s notice of an increase.”
Or it might set out how much you can expect the rent increase to be - for example, that it will rise by a certain percentage each year or in line with an inflation measure, like the Retail Price Index.
2. Look at what similar properties are renting for nearby
The next thing to do is make sure the proposed rent increase is in line with the local rental market.
Search for properties like yours that are available to rent in your local area.
Make sure you’re looking at homes that are a similar size, with the same number of bedrooms and similar characteristics.
It can help you decide if the landlord’s rent increase proposal is in line with similar rents in the area and if you would like to negotiate or challenge the rise.
3. Speak to your landlord or letting agent
Whatever you’ve found out so far, it’s time to have a conversation with your letting agent.
If you don’t think your contract allows for a rent rise, make your concerns clear.
Or if you don’t think the proposed increase is fair, share your reasoning. It can help to show them the similar rental properties you’ve found.
Stay calm and professional, ask questions and make sure you really understand why your landlord is increasing the rent to the suggested rate.
The letting agent will be able to help both parties see each other’s point of view and help you come to an agreement.
4. See if there’s room to negotiate on the rent increase
At this point, you can respectfully ask the letting agent if the landlord will be open to negotiation if you feel the rent increase is too high.
Explain your situation and the impact of the increased rent on you, and suggest a rent that you think is fair based on your research.
It’s not always going to happen, but your landlord might negotiate on price rather than risk losing you as a tenant.
Hopefully you can all reach an agreement that’s fair for you and your landlord.
If you can’t reach an agreement on the rent increase with your landlord
If you can’t reach an agreement on the rent rise, you have two options: challenge the rent increase or cut your losses and look for a new place.
Neither are ideal options - particularly if you love where you live - but weigh up the increased rent against the upheaval and costs of moving house.
Get support to pay your rent
Another option is looking into the financial support you could get to pay rent.
You could get help to pay rent from:
A budgeting loan (if you’re already on benefits)
A discretionary housing payment from your local council (if you’re already on benefits)
How to challenge a rent increase
If all else fails, you can challenge your landlord about the rent increase and get a tribunal to decide if it's fair.
When can you challenge a rent increase?
You can apply to the tribunal to challenge a rent increase if:
your rent’s been increased as part of a section 13 notice, and
the increase is unreasonable - whether you think it’s out of line with the market, the home’s in bad condition or the landlord hasn’t stuck to their responsibilities
You cannot apply to the tribunal if the rent increase matches the terms in your contract.
Be aware that the tribunal could decide that a fair rental rate is even higher than what the landlord is proposing. This means it’s usually only worth challenging if the rise is clearly too high.
You can apply to the tribunal on GOV.UK. It’s free to apply.
Keep paying your rent on time - but not the proposed higher rate
Make sure you apply to the tribunal before the increased rent is due to start.
Keep paying your usual rent while waiting for the tribunal, otherwise you could fall into rent arrears and face eviction.
But don’t pay the proposed higher rate until the tribunal gives their decision. You could be seen to have agreed to the new rate if you do.
How the tribunal works
The tribunal is made up of two or three professionals, like solicitors or surveyors, who look at rental rates in your area. They’ll also look at what your landlord would charge if a new tenant moved in.
This will help them decide if the rent increase is fair, and their decision is final. They’ll tell you if your rent will stay the same or what it will rise to.
If they decide the rise is fair but you don’t want to pay it, you’ll have to move out.
If you live outside of England, there are different ways to:
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