Increasing rent while on a periodic tenancy

My tenant has come to the end of a 2 year tenancy agreement which has now rolled over to a periodic tenancy.
The rent is at least £250 a month less than local market value and I want to increase his rent.
He is a good tenant and I wouldnt want to lose him, but my mortgage costs have gone up considerably and I need at least to cover this increase.
Can I just increase the rent without a new tenancy agreement?
If I need to create a new tenancy agreement, what is the position if the tenant doesnt accept a new agreement?

You can increase the rent without a new tenancy agreement.

  1. If the tenancy already has a rent review clause you can use that.

  2. You can serve a section 13 notice. It is recommended to have an informal discussion first before serving the notice and give the tenant 2 or 3 months notice so they can re adjust their finances. It would be good if you can also keep the level of increase slightly below market rent which will help them to accept the increase as they will find it difficult to be able to find a similar property in the area for less.

Thanks, that is very useful.