Hands up if you’ve faced a rent increase in the past year? I certainly have, and I imagine that most renters reading this have too. Last September alone, more than a million private renters in England were hit with a rent increase, according to a report from Shelter, with one in three people spending at least half of their household income on rent.
This week, a tweet from media lawyer Liz Slade has gone viral after she said that her landlord sent her an email stating that they would raise her rent by £675 per month.
“My landlord just sent me a notice increasing my rent by £675 a month! Jesus. I pay my rent all on my own (a two-bed for me and my two kids). How tf is this legal? This country is out of control,” she wrote in the tweet that’s been liked over 9,000 times.
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Other Twitter users were quick to comment with their own rental hikes, with one person saying their friend’s rent had been increased by 60% per month, while another said that her landlord threatened to kick them out if they could not pay the £500 per month increase as they were confident they could get someone else to pay that rate.
One reason behind these rises is the rise in mortgage interest rates. Landlords' mortgage repayments are climbing and so the cost is being transferred onto the tenant. Another reason is the housing crisis, particularly in large cities like London, means there is more competition than ever to secure homes and flats and they are often going to the highest bidder – which will often be hundreds of pounds over the advertised rent.
1 in 20 tenants couldn't pay their landlord last month.
The latest data from the Office for National Statistics found that private rental prices paid by tenants in the UK rose by 4.7% in the 12 months to February 2023. So what can you do if your landlord sends you notice of a rent increase and you simply cannot afford it?
The first thing to do is try to negotiate your rent increase with your landlord. If they send you a proposed 10% rent increase, respond back with a 5% counter offer and go from there. Hopefully they will meet you halfway.
If you have an assured shorthold tenancy or assured tenancy, your landlord must issue you with a section 13 notice that they want to increase your rent. However, if you have a rent review clause in your rental contract, your landlord can usually increase your rent at certain times outlined in the clause without issuing a section 13 notice.
Touted as the ideal solution for renters who struggle to save.
If you can’t come to an agreement about the rent increase, Citizens Advice says you can challenge your rent increase if you have a section 13 notice and the amount the landlord has put forward is unreasonable (especially if the landlord hasn’t done repairs in the home when they should have), and if you haven’t yet paid the proposed increased amount.
The case will then need to be taken to a tribunal which is free to apply. You will need to apply before the date your rent increase is due to start. The two or three members of the tribunal will decide whether the rent increase is fair by looking at the cost of renting similar properties in the area and look at what your landlord could charge if they were bringing in a new tenant.
If it is decided your rent increase is fair, you will pay that amount or, if not, then it will remain as is. It’s worth noting that it can take up to 10 weeks for a tribunal to make a decision, and if they decide in favour of the landlord, then you will need to pay the higher amount of rent backdated to the date on the section 13 notice.
You can find out more about the evidence you will need for your tribunal and how to submit a claim at citizensadvice.org.uk
