Landlord and Tenant Lawyer at OTS Solicitors Features in ‘This is Money’ Answering Questions on Rent Increases
How and when can a landlord increase the rent? It’s a question landlords and tenants want answering.
At OTS Solicitors, our landlord and tenant team are here to make the complex world of landlord and tenant law simple and stress-free. Recognised by Legal 500, our expert team led by Nollienne Alparaque is ready to guide you every step of the way.
Online and London Landlord and Tenant Solicitors
For legal advice on rent increases call OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
Statistics on Rent Rises
Our Landlord and Tenant Solicitors keenly monitor rent rise statistics. Landlords tend to think tenants are getting a good deal while tenants believe they’re being fleeced. The Zoopla statistics reveal:
- The average rent for new lets is £1,245 a month
- Tenants are paying a third more in rent than four years ago
London Rent Rise Statistics
Based in the City of London, it isn’t surprising that our Landlord and Tenant Solicitors focus on the rent rise statistics for London and the South East.
In London, the tenant referencing company HomeLet provides these statistics:
- The average London rent is £2,211
- North West London has an average rent of £2,129 a month, up 48% in four years
- South London has seen rental increases of 42% since September 2020
North West London includes the boroughs of Barnet, Brent, Ealing, Harrow and Hounslow. South London includes the boroughs of Bromley, Croydon, Merton, Kingston Upon Thames and Sutton.
When The Landlord Wants to Increase The Rent
What can a tenant do if their landlord wants to increase the rent? When a landlord’s mortgage goes up can the landlord pass the increase on with a rent rise? The leading financial website, This is Money, tries to answer these sorts of questions.
The starting point is to examine the tenancy agreement. The agreement should spell out when and how a landlord can increase the rent.
Whether you are a tenant or landlord, working out what a rent review clause in a tenancy agreement allows a landlord to do isn’t always easy. Landlords can't afford to get it wrong. Tenants don’t want to pay more rent unless they need to and therefore need to know their tenant rights. It's best to get expert legal advice.
Tenancy Agreements and Rent Rises
If a tenant has a fixed-term tenancy a landlord can't normally increase the rent during the agreement unless the tenancy agreement includes a rent review clause that provides for rent increases. The rent can only go up in accordance with the clause.
The situation changes when a tenant reaches the end of their tenancy agreement. By default, most tenancies roll over into a periodic or rolling tenancy. At the end of the fixed term, most landlords review the rent to check if it is still in line with local market rents and to reflect any property-related changes, such as an increase in their buy-to-let mortgage interest rate.
If a landlord thinks a rent rise is justified, they can issue a notice in writing under Section 13 of the Housing Act 1988. If the correct notice isn’t served the tenant can decide not to pay the increased rent. If a landlord serves notice and the tenant objects to the rise the tenant can challenge the rent increase through a rent officer at the Property Tribunal.
The Renters’ Rights Bill
When the Renters’ Rights Bill becomes law in 2025 any rent increases will need to be preceded by a written notice of the intended increase and the rent rise will need to be in accordance with market rents. Tenants will be able to challenge the increase through tribunal proceedings.
Nollienne Alparaque has noted an increase in inquiries from London landlords about rent rises before the new law comes into force. That’s in addition to all the landlords looking to use the Section 21 no-fault notice procedure before it is abolished.
Most tenants will currently reluctantly consider a rent rise as they are at risk of a Section 21 no-fault eviction and:
- The cost of a rental move to a new rental property runs into several hundred pounds
- A rental move can be very disruptive when a tenant has school-age children or a commute to work
- The shortage of London rental property
To the frustration of some landlords, other tenants will refuse to agree to a reasonable rent rise knowing that it will take the landlord several months to secure a possession order and evict them.
Renting in 2025
Zoopla has its finger on the pulse with its statistics on the English rental market. Their latest report highlights the risk of landlords leaving the property market because of tax and policy changes. However, that won't necessarily result in property being sold to first-time buyers as many rental properties are outside their affordability. Accordingly, there is a risk that changes in the law will bring about reduced numbers of properties available to rent with consequent upward pressure on rent.
This is Money and OTS Solicitors
Nollienne Alparaque says if you have questions as a landlord or tenant then This is Money is a great resource. It’s the 2024 financial website of the year and regularly features articles answering questions that landlords and tenants want answers to. Nollienne is one of their go-to lawyers happy to use her legal expertise in This is Money articles to point landlords and tenants in the right direction and to highlight why they need specialist legal advice.
Online and London-based Landlord and Tenant Solicitors
For landlord and tenant advice call the experts at OTS Solicitors on 0203 959 9123 or complete our online enquiry form.
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