Rent increase question 2022

Tenant’s STA ends 12 April. I gave her a good deal but feel need to increase the rent . What is an acceptable percentage? I feel 3% is good. Any comments. Thx. LC

3% is what I usually do. By the way you don’t need a new tenancy agreement for that. Just serve a s13 notice or agree the increase informally. The tenancy then becomes periodic.

I think 3% is excessive given that inflation is normally less than 2%. And most tenants’ wages haven’t risen.

The two factors you should take into consideration are:

  1. How much have rents gone up in the area?
  2. You state you gave the tenant a good deal. Are rents for comparable objects in the area more expensive?
  3. Do you think your tenant will move, especially since they might have moved in because of your “good deal”. Then you’ll have lost much more than you could’ve gained

Thx chaps. Think 3% reasonable as will take rent up to level I was charging in 2019! In fact 2.71% takes it to a nice round number. London increases can be up to 15% which is not good but demand is high.
Had one tenant for 14 years, no increase. Got to
A point I was nearly losing money so increases are often justified.

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I’d strongly suggest contacting them and trying to arrange it informally instead of leaping to a section 13 - unless you want the risk of dealing with the headache of the appeals process. It sounds like they wouldn’t have a chance of winning if they appeal, but as I said it’s a headache.

Who would leap in without discussing any increase first?

I would support that view

My landlord. Sighs

She’s the kind who wants the letting agent to do all the work and the letting agent dropped the ball and didn’t contact us about it for 6 weeks, so just sent out the section 13.

We let her know and she doubled down on how the letting agent is just protecting her so now we’re filing the appeal because her own letting agent is offering similar properties for much less.

Getting confused with thread. Original
Question was about % increases but we seem to be going downs lots of different threads, off topic.

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The percentage increase is reasonable.

Best practice is to seek agreement first.

If agreement is unreachable, section 13 is the option.

You asked me who would leap to a section 13 without asking first and I answered.

I dont think anything I’ve said was off-topic, but I think your original question has been answered

Hi David,
You are right. It wasn’t your response I was referring to. Thx anyway.

Was it a 12 or 6 months tenancy? Three percent after six months would be excessive and certainly not justified by salary increases. Energy and food prices are rising, it’s unclear whether your tenants could even afford it. They probably have less money than at the beginning of the tenancy. After 12 months, three percent is reasonable but the same problem still applies. If you charge something they couldn’t afford then there’s no point.
I once was a tenant and the landlord tried to increase by five percent after six months. I found it ridiculously greedy. I gave notice, it was not only because of this greed, but that was the straw that broke the camel’s back.


1 increase on annual basis
2 give them 2 months notice for good order, no need to make it legal just put it in writing current rent/proposed rent date to start, no big deal
3 increase by cost of living or inflation. 3 % is reasonable just now. remember after all the QEasing inflation will soon be 5%
4 the other factor is local market. this year we have bumped some rents 9% because with so many rental units sold the rents have gone up in our area by 9%
5 you must research what other LL are charging in your area. if similar properties are renting at 1100 i will keep it maybe 100 less unless its a bad tenant.

I normally increase every year by inflation and based on this year inflection figures that are reaching 7% I think 3% is fair. I have increased by 3.5% I agreed with Sidney give them 2 months notice.

Look at the local rental market. What are similar properties renting for? Professional landlords will recognise that their own costs are increasing… Property re-build costs are increasing, which in turn increases insurance premiums, Mortgage % rates are increasing, tax relief on mortgage interest is reducing, and landlords own cost of living is increasing along with everyone else’s. Setting a % that is appropriate to your property in your local market… it might be 3% in one area and 10% in another… with both being fair. Its essential you consider Inflation in the equation, otherwise not increasing by enough will mean your income/rent in ‘real terms’ is actually getting less! You could also look at the ONS Rental index Index of Private Housing Rental Prices, UK: monthly estimates - Office for National Statistics

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I have had long term tenants on unchanged rents also, not 14 years though - wow…!!

I soon realised that was not a good situation, and the rent increases necessary to bring them in line with current levels was a bit excessive.

I now keep a chart showing due increases at 2-yearly intervals, then consider the current market levels, and try to keep them within the consumer price index (CPI) figures to make it palatable to the tenant, who can then see a genuine basis for the increase.