How Much Can A Landlord Increase Rent?

Managing Your Money / Consumer Rights & Advice

Rent increases can be difficult to navigate, but there are ways to get help if you think you’re facing an unfair increase. In this guide, we’ll explore what a fair rent increase might look like, how much your landlord can legally raise your rent, and how you can challenge unfair increases. 

What is a fair rent increase?

The government’s rent cap for social housing from 2024 to 2025 is 7.7% in England and Northern Ireland, and 6.7% in Wales. This means the cost of rent for social housing can’t legally increase by more than that percentage compared to the previous year.

If you’re in private rental accommodation, there’s no cap on how much your landlord can raise your rent. If you’re out of a fixed-term contract, your rent can increase with 28 days' notice, or longer in Scotland and Wales. Your rent can also go up if your contract has a rent review clause. Your landlord can increase your rent without warning if you're a lodger, unless you have a fixed-term agreement.

If you think a rent increase is too high, compare the new amount with similar properties in your area. Typically, house prices go up when inflation goes up. If the cost of your rent is rising in line with inflation, this might be seen as a fair price increase. Then, you can speak to your landlord to see if you can negotiate a smaller rise.  

Before accepting a rent increase, it’s a good idea to check how much rent you can afford. When your landlord has suggested a rise that you think is unfair, and won’t negotiate with you, you could choose to take your dispute to a tribunal. 

You don’t have to agree to a rent increase. If you refuse, your landlord can terminate your tenancy. You can find help and advice in our guide, if you’ve received an eviction notice or are at risk of being evicted

How your property type impacts your renting rights

How much your rent can increase depends on the type of property you live in, your contract, and your renting rights and responsibilities.

Living in social housing

A rent cap protects people living in social housing from unfair rent increases. This means rent prices for social housing can only increase by a set percentage compared to the previous year.

The government sets the cap for social housing rent increases every year, usually in April. It uses the Consumer Price Index (CPI) inflation rate to determine how much the rent cap can increase compared to the previous year. 

Your rent cap will depend on where you live in the UK, and will change every year. If you live in social housing, you must be given notice in advance before your rent is increased. In England and Northern Ireland you must be given at least 28 days’ notice, it’s two months in Wales and three months in Scotland.

If you’ve been notified of an increase that’s higher than the rent cap, you can contact your social housing provider to ask for more information. If you pay the new amount, this could be seen as agreeing to the rent increase, so make sure you complain in writing before you pay the new amount.

If your housing provider can’t provide an explanation, you can follow the formal complaint procedure outlined on your provider’s website. If that doesn’t work, you can file a complaint with the free and independent Housing Ombudsman. You can learn more in our guide to Universal Credit and paying rent.

Living in private rented accommodation

The rent cap doesn’t protect residents living in private rented accommodation. This means private landlords can increase rent by any amount as long as they follow what’s outlined in the tenancy agreement. This usually includes agreements around whether your rent can increase and by how much. 

Most private tenants have an assured shorthold tenancy (AST), which outlines certain rights and responsibilities for tenants and landlords. This can include a rent review notice with details about how much the landlord can increase the rent by and when, usually a small fixed percentage. If your tenancy agreement has a rent review clause, this usually is set for 1 year after you signed the contract, but can be at 6 months or any other time, so check before you sign. When signing a tenancy contract, the tenant agrees that the landlord can increase the rent in line with that figure. 

After your assured shorthold tenancy (AST) ends, you will move onto a rolling or periodic tenancy if you don’t move out. If you have this type of tenancy, your landlord can propose a rent increase at any time, as long as they give you enough notice. 

A rent review notice must be handed to the tenant in advance, giving the tenant time to plan ahead. Your landlord must give you at least:

  • 1 month’s notice in England and Northern Ireland,
  • 2 months’ notice in Wales, and
  • 3 months’ notice in Scotland. 

Most agreements state that rent can only increase if: 

  • the tenant is outside a fixed-term contract, or 
  • the tenancy agreement allows a rent review.

The exact rules around private rented accommodation depend on the type of tenancy agreement you have. A fixed-term assured shorthold tenancy (AST) gives tenants the right to live in a property for an agreed period as long as they pay the rent and follow what’s outlined in the contract. 

When the fixed term ends, the tenancy can change to a rolling or periodic tenancy. This means that the tenancy rolls over, usually from week to week or month to month, without a specific end date. Rolling ASTs come with less protection against rent increases. 

If you have a regulated tenancy that started before 1989 or have unique living arrangements, you might have different rights. 

Check your tenancy type and see GOV.UK’s how to rent guide for support. If you need help speaking to your landlord, read our guide on How to sort a dispute with your landlord

How much notice needs to be given for a rent increase?

How much notice you’re entitled to depends on how you pay your rent.

  • If you pay rent weekly or monthly, you have the right to be given at least 1 month’s notice,
  • if you pay rent yearly, you should get 6 months’ notice. 

How does a landlord propose an increase in rent?

There are a few ways landlords can propose rent increases, including:

  • creating a new tenancy agreement with higher rent after your fixed term ends
  • discussing and agreeing on rent increases with the tenant directly – in this case, it’s a good idea to get written proof of the agreement with both signatures
  • issuing a Section 13 notice. 

What is a rent review clause?

A rent review clause is a provision in a contract that lets landlords and tenants adjust the rent in the middle of a tenancy. It outlines criteria that need to be met before any adjustments can be made, like changes to market rates and local rental values or inflation.

This clause helps ensure rent prices stay in line with current market conditions. If your tenancy agreement has a rent review clause, a Section 13 notice is invalid.

What is a Section 13 notice?

Section 13 of the Housing Act 1988 lets landlords raise the rent on assured shorthold tenancies once a year. Section 13 notices can only be served during a periodic tenancy, which is a tenancy without a specific end date.

Find out more about Section 13 notices at Tenancy Agreement Service.

When is a Section 13 notice invalid?

If you receive a Section 13 notice, check it’s valid before you respond. A Section 13 notice might be invalid if: 

  • your landlord hasn’t given you enough notice – this depends on your tenancy type and where you live, but it must be at least 1 month
  • your landlord tries to increase your rent within a fixed-term tenancy, and it’s not in line with any rent review clause that’s in your contract
  • it's been less than a year since your last Section 13 notice
  • your landlord has used the wrong form
  • your landlord hasn’t signed the notice
  • your landlord has made mistakes, such as incorrect names.

What to do when a Section 13 notice is valid

You should always respond to a Section 13 notice as soon as possible. If you ignore it, your silence can be seen as an agreement. You should respond in writing to tell your landlord that you disagree with the proposed rent increase. 

You can find more help about how to do this from Citizens Advice. You have the right to challenge a Section 13 notice if the rent increase doesn’t compare with similar properties in your area. If you do want to challenge a Section 13 notice, you can apply for a free tribunal review. Be aware that this can be risky. The rent set by the tribunal may be higher than the landlord asked for. 

If you open a review, keep paying your rent while you wait for a response. When a decision is made, you might have to pay more, the same, or less than the initially proposed rent increase. Your landlord could evict you if you refuse to pay a rent increase.

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