Will I Still Be Able to Increase the Rent During a Tenancy?

The Renters' Rights Bill introduces new rules on how landlords can increase rent during a tenancy. If you own rental property in Salisbury, Wilton, or Warminster, it's essential to understand these changes to ensure compliance and maintain a fair relationship with your tenants.

Key Changes to Rent Increases

Under the new legislation, landlords can still raise rent, but the process is more regulated. The key changes include:

1. Rent Increase Clauses Will Be Invalid: Any clauses in tenancy agreements that specify automatic or fixed rent increases will no longer be valid. Instead, landlords must follow the formal process set out in the law
2. Rent Can Only Be Increased Once Every 12 Months: Landlords will only be able to raise rent once per year to ensure tenants have stability and predictability in their housing costs.
3. Rent Increases Must Be Done Using a Section 13 Notice: To increase rent, landlords must serve tenants with a Section 13 notice, providing at least two months' notice before the new rent takes effect. This process ensures that tenants are given proper notice and a chance to prepare for any changes. It will not be permitted to discuss or negotiate a rent increase with your tenant until a Section 13 Notice has been served. If the tenant does not respond to the Section 13 Notice, it is deemed that the rent increase is accepted.
4. Tenants Can Challenge Unfair Rent Increases: If tenants believe the proposed rent increase is excessive, they have the right to challenge it at the First-tier Tribunal (Property Chamber). There is no cost to the tenant to appeal to the First Tier Tribunal, and this process can delay the rent increase for many months.The tribunal will not be allowed to set a higher rent (as is the case now), and any rent increase will not be effective until the date of the judgment—it will not be backdated as it is now. This could become a great delaying tactic for tenants.

What This Means for Landlords

1. You can still increase rent, but only once per year and by following the proper legal process.
2. Automatic rent increase clauses will no longer be enforceable.
3. You must use a Section 13 notice and provide tenants with at least two months' notice.
4. Be prepared for potential challenges from tenants if the increase is above market rates.

We recommend that landlords start reviewing rents now before the Renters' Rights Bill becomes law so that you can make sure your tenants are paying a fair and reasonable market rent before the law changes.

Steps to Stay Compliant

• Review and Update Tenancy Agreements: Remove any rent increase clauses that will no longer be valid and ensure your agreements comply with the new legal framework.
• Plan Rent Increases Strategically: Since rent can only be increased once every 12 months, set fair and sustainable rent levels from the start.
• Stay Informed on Market Trends: Research local rental rates in the Salisbury, Wilton, and Warminster areas to ensure your increases are reasonable and justifiable.
• Seek Professional Guidance: If you're unsure about the changes, consult a legal professional or join a landlord association for further support.

If you need further guidance, consider reaching out to local landlord networks or property law specialists to stay ahead of these legal changes.

Feeling overwhelmed by rental reform headlines? We're here to simplify it. Our blog series breaks down what landlords really need to know - minus the myths. If you're a Salisbury, Wilton, Warminster, or Amesbury and want advice tailored to you, give us a call on 01722 580059 or email info@piccoloproperty.co.uk.