I haven’t increased the rent for over 2 years. I have now asked that the rent be increased by 10%. The tenant says they can’t afford it, so I agreed to drop this by £50 (8%) she has counter offered another reduction of £50. They are good tenants but they also get a good deal. I’m not happy to agree to her offer - she had said she is staying out and paying the original rent (no increase) as she can’t afford it. What now?
Well CPI inflation has been running at 3.2% in year to Nov 2025 and 2.6% in year to Nov 2024. So combined rate of these (5.9% as cumulative) is well under 10% and basically what tenant has counter proposed. Why did you pick above inflation rise of 10%? Have you got evidence of higher demand/higher increases in your area? Or are you trying to say to tenant you charged below market rate before?
Sounds like tenant knows that if they challenge the increase at the Tribunal they pay current rate till outcome, which Citizens Advice say can take up to 10weeks
Tbh I would accept the counter proposal- if you insist on the extra 50 pcm you have the hassle of trying to justify to tribunal (and no increase meanwhile) and tenant liable to leave anyway if they actually can’t afford- is 50pcm really worth the risk of a void period, re-letting costs and losing good tenants- you never know what next ones will be like.
Good luck
1 Like
I agree with David. Inflation is generally a fair measure to use although an argument could be made that RRA increases costs and risks and a higher rent is required, or if improvements have been made a higher rent could be considered. Ultimately it depends on the local market rate as to how much you can increase it.
Thanks for your response, very informative. The rent I am asking for is very much in line with market rent for the area. It’s a stunning property and I’m a good Landlord. This tenant calls me for every little thing too - she expects her pound of flesh! But I will make sure I make smaller increases year on year in future.
Very grateful
The wiser move is an annual increase that is 3-5% in line with CPI as long as that doesn’t take you above market rate.
I’ve always sent a letter to the tenant a month before notifying them that I’ll be issuing the S13. The letter contains the details of how I’ve calculated the rent increase and any specific reasons why (e.g. selective licensing costs being introduced last year). This advance notice and explanation have always cushioned the blow.
From now on you’ll need to issue an S13 anyway.
1 Like
Thank you - good advice. Sadly I’m in my mid 60’s and consider myself a good Landlord. I’m not looking forward to what the future holds - I think it might be time to consider selling my small portfolio 
If you are thinking of doing that then maybe serve a s21 now as you will lose that option soon.
1 Like
I thought if I was selling or moving in myself I could still serve a Section 21?
It wont be s21 after 1st may. Section 8 will include grounds enabling you to sell with 4 months notice. If you have decided to sell s21 now is likely to better option as quicker/easier and you will then have the ability to rent it again if it doesnt sell whereas if you use s8 after May you cant rent it again for a year if it doesnt sell at an acceptable price.
1 Like
If you’re seriously considering selling you can issue section 13 in the correct manner. Give the tenant your reasoning for the increase . The tenant then must either challenge the increase through tribunal or pay the increase with no further discussion. They may also decide to leave the property if they cannot afford the increase. Be aware that if you do decide to sell and the tenant accepts the increase or it is approved at tribunal you will then need to issue section 21 before May or if after RRA a sec 8 (with the correct notice period ) I’ve recently sold a property and It took 7 months to go through with no chain. As the property was empty, full council tax was due as were the energy charges so this financial aspect also needs to be considered in any decision you make. If the tenant is good it may be worth negotiating the increase and then allowing yourself the time to form a good exit strategy. The bigger increase may lead to more complaints and issues with the tenant.
I hear you - sadly I couldn’t cope with selling them all at once. I’m not desperate so I will be patient. Some of my tenants have been with me for 7/8 years. I would hope my tenants would be understanding as I’ve been a very considerate Landlady sometimes allowing my heart to rule my head. I feel I really need to familiarise myself with the upcoming changes - any advice on where I can access good information
Great advice - thank you
1 Like