Rents are going up. That’s the reality across most of the country. But why is it happening? And how much can a landlord increase rent? Whether you’re a tenant or a landlord, you should know the rules and the conventions of rising rental rates. So read on, and find out what’s happening in the UK rental sector now.
FAQs
When can a landlord increase rent?
Your landlord’s ability to raise rent on your home will depend on the type of tenancy agreement you have in place. For periodic tenancies (ones that roll on week by week or month by month), the landlord cannot raise the rent more than once per year without your agreement.
If you are on a fixed-term tenancy (i.e.: a set period such as 6 or 12 months), then your landlord cannot raise your rent without your agreement. If you don’t agree to the rent raise, the landlord will have to wait until the set period ends. Then they can negotiate a new agreement at a higher rate.
What is the most a landlord can raise rent?
Technically speaking, in the UK, landlords can raise rent on their property by any amount they want. However, in practice, landlords must stick to ‘fair rent’ increases that are in line with current market rates.
What is a fair rent increase UK?
The Gov.UK guidelines on private renting say that all rent increases must be “fair and realistic, in line with average local rents.” So, if properties in your area were being rented for £900 PCM, and have gone up by 5% to £945, then a proposed rent increase from your landlord should roughly be equal to this amount.
What was a fair rent increase in the UK in 2022?
If you’re going by the national average, a fair rent increase in the UK in 2022 was around 3.2%. This is how much private renting went up on average across the country between July 2021-July 2022, according to the Office for National Statistics.
How much could a landlord increase rent 2023?
The Royal Institution of Chartered Surveyors (RICS) recently predicted that tenants may face rent increases of up to 15% by 2023. Again, landlords will need to raise rents in line with market prices, or risk pricing themselves out altogether. However, the continued imbalance of high demand and low supply of available homes in the UK means that higher rental rates are a likely reality for 2023 and beyond.
How much can a landlord increase rent UK in 2024?
At the beginning of 2024, the ONS said that rents UK-wide went up by 6.2% over the past 12 months. If a landlord is looking to raise rents in 2024, around 6-7% would be considered a fair increase.
Can my landlord increase my rent twice in a year?
If you are on a periodic tenancy, a landlord can raise your rent more than once per year. However, you will need to be consulted and given notice. If you believe that your rental raises are unfair, you can dispute them. Citizens Advice has a useful guide to rental increase negotiations and disputes.
Can I refuse a rent increase?
You can refuse a rent increase, and the consequences will differ depending on your tenancy agreement. For example, if you’re on a fixed term, your landlord cannot increase your rent without your agreement. Therefore, the raise cannot legally be implemented. However, they may then decide to not offer to renew your tenancy when the term ends, so they can simply advertise the property to new tenants at a higher rate.
What is a Section 13 rent increase?
The Housing Act 1988 has a provision called a Section 13 Notice. This is issued by landlords to tenants to increase the rent after an initial fixed period has expired and the tenancy is in the statutory periodic tenancy. However, a Section 13 Notice still cannot be used to increase the rent during the fixed term of a tenancy.
Why has rent gone up so much?
There are many reasons why rental rates have gone up so much in the UK. Due to changes in taxation and other legal statutes, landlords have higher expenses when renting out their properties, and are raising rent to cover themselves. For example, lots of landlords have to invest more in making their properties energy efficient, because they will need an EPC rating of ‘C’ or above to legally rent them out from 2025 onwards.
The simplest reason is supply and demand. There is a sizeable shortage of homes available in the UK, and rising house prices keep millions of people from getting onto the property ladder. This squeeze continues to fuel demand for rental properties, raising average rents across the country.
Will UK rents keep rising in 2024?
As of 2024, there are an estimated 11 million renters in the UK, across 4.6 million households. With more people finding homeownership an impossible dream, the demand for rental accommodation keeps outpacing the level of new properties coming onto the market. Until the supply/demand imbalance is fixed, expect rental rates in the UK to remain high.
For more information on renting in the UK, consult our guides below. We have plenty of advice for tenants, landlords and buy-to-let purchasers.
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