I am in my third yearlong renewal of my lease on my house with my family here in Oxford. My current lease runs out on 24 July 2020. My property manager sent me a letter about 2 weeks ago asking if I wanted to renew for another year, and if so, the rent would be £175 higher than it was the year before.
I am wondering if the landlord is allowed to raise the rent in the new contract, given that he has not given 6 months notice. The relevant text in the UK rules comes from https://www.gov.uk/private-renting/rent-increases: “Your landlord must give you a minimum of one month’s notice (if you pay rent weekly or monthly). If you have a yearly tenancy, they must give you 6 months’ notice.”
So, if I am in a yearly tenancy, is he allowed to raise the rent in a new contract that has been proposed with less than 6 months notice?
A further question is whether this raise of rent is in line with average rates, given the current crisis that is depressing the economy. Does the new contractual rate have to comply with the rule from that same page, that, “the rent increase must be fair and realistic, i.e. in line with average local rents?” Finally, if average local rents have gone down, does the new rate have to go down as well?
In a yearly tenancy it is 6 month notice to be given . Proving the rent should be lower is tricky how will you measure that? I would offer to renew at the same rent
Thanks Colin. This holds even when he is trying to raise the rent in a new annual contract? Thanks…
I assumed you meant £175 per year , did you mean per month ? I just had a horrible feeling you meant per month. That is taking the mickey . Still offer to stay at the same rent the agent is nuts and chancing his arm as we say
It’s per month, but £75, not £175… (my mistake)…
Got that… I am up on Merseyside, so rents will not be as dear as in Oxford. I would check around to see what other properties are going for. I am a Landlord and would not dream of putting up the rent as I have good tenants > You can either stand your ground , offer half or agree, its your call. I can only say I do not like greed or unfairness
Hi @633f17c492b263bb5d9d, I want to check that you are truly in a yearly tenancy, as these are quite rare. A yearly tenancy is one where the rental period is one year. I.e. the rent due once a year, not every month. In a yearly tenancy the notice period is very long because the rental period is very long.
But in a monthly tenancy (i.e. one where the rental period is one month long), only one month’s notice is required before a rent increase. There are rules that must be followed when a landlord is proposing a rent increase. Rents can only be increased:
- by mutual agreement (i.e. you can say no if you don’t want to pay more)
- by signing a new tenancy agreement (again, you can always choose not to sign a new agreement, but this may leave you without the security of a fixed term)
- serving a rent increase notice form
For this last one, the tenant can challenge the increase if it is too high. The form will have instructions on how to do so.
Thanks Sam - just the info I was looking for. I pay monthly in my year contract, so it looks like I’m in the “monthly” category. Thanks for the clarification.