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Guide to Rent Increases

 

Rents have risen everywhere in the UK in recent months. That might mean you'll be paying more rent if you have to move. But there are also rules around how and when your rent can go up during a tenancy.

To make sure you know what steps to take, we've put together a guide to answer the most common questions about rent increases in Scotland, England and Wales.

When can my landlord increase my rent?

England

If you have a fixed term tenancy, your landlord can only increase the rent during the fixed term if you agree to it. If you don't agree, they can only increase the rent once the fixed term ends.

If you're on a rolling contract (periodic tenancy), the landlord generally can't increase the rent more than once a year without you agreeing to it.

Wales

If your contract started before 1 December 2022, your landlord must give you a section 123 notice in order to increase your rent.

Fixed term contract 

  • Your landlord can only increase your rent at the end of the fixed term - if you agree
  • Your new rent must be included in your new written statement or your landlord will need to tell you about the new rent amount before you sign the written statement

Periodic standard contract 

  • Your landlord can increase your rent once a year. If they do, they have to give you 2 months’ notice

If your contract started after 1 December 2022:

Fixed term contract 

  • Your landlord can’t increase your rent during the fixed term unless you agree. 
  • If you agree, your landlord must send you a new written statement within 14 days and it must include the new rent.

Periodic standard contract 

  • Your landlord can increase your rent once a year and must still give you at least 2 months’ notice for a rent increase
  • It’s rare and unlikely that you can challenge it. Talk to an adviser to see if it is possible 

Scotland

Private Tenancy 

  • Your landlord can increase the rent any time in the first year of your tenancy. After that, they can only increase it once every 12 months providing they give a minimum of 3 months’ notice 

Assured or Shorthold Tenancy

  • Your landlord cannot increase the rent during your fixed term unless you agree to it, or it states so within your tenancy agreement 

How much can my rent go up by?

England and Wales

If you have an assured or shorthold tenancy, there’s no limit to how much your rent can be increased by - unless there’s a clause in your contract that states otherwise. 

Scotland

If you rent privately or have an assured or shorthold tenancy, there’s a ‘rent cap’ which limits how much your rent can be increased. This cap currently applies until 31 March 2024.

In accordance with this, your landlord can only increase rent by up to 3% (if they send you a valid rent increase notice), or by up to 6% if they apply to Rent Service Scotland.

What can I do if my landlord puts my rent up?

England

You do not have to agree to a rent increase, unless you have a clause in your contract that states otherwise and/or if any of the the following circumstances apply:

  • You believe that the proposed amount is unfair (e.g. it is above market rate 
  • Your home needs repairs and therefore an increase would be unjust 
  • You don’t have a clause in your contract that states you should expect a rent increase 
  • You aren’t given the legal notice required
  • You haven't paid the increased amount

It’s always worth negotiating with your landlord if they suggest a rent increase. The likelihood is that they will prefer to keep you on as a tenant as it saves them the hassle of having to find a replacement tenant - especially if they don’t have any existing grievances with you. 

If your landlord objects to your negotiations, they will take steps to end your tenancy. In which case, your landlord legally has to give you 2 months’ notice to move out, as per Section 21. 

Wales

You can only challenge a rent increase if the following is true:

  • Your contract started before 1st December 2022
  • Your landlord gave you valid notice under Section 123
  • The increase is unreasonable (e.g. your home needs repairs that your landlord has refused)
  • You haven't paid the increased amount 

If any of the above apply, you are within your rights to negotiate and challenge your landlord. If this isn't successful, you can ask a tribunal to decide for you (it’s free!). However, you must apply before the date your proposed rent increase is due to start. 

The tribunal is made up of 2-3 professionals who will decide if your rent increase is fair. If they do decide it’s fair, you’ll have to pay that amount. If they decide it isn’t, your rent won’t be increased. 

Scotland

Your landlord cannot propose an increase over 3% or 6% or carry out any evictions (except under exceptional circumstances), until September 2023, currently .