How Much Can a Landlord Increase Rent in England? 2024 Guide
When living in rentals in England, the most frequent question is, ” How much can a landlord increase rent annually?” Tenants have the right to know every detail regarding fair rent raise.
Simultaneously, you would increase your rental yields as a landlord. In this guide, we will discover a fair rent increase in 2024-2025 and your curiosity about “how much can a landlord increase rent legally” or much more!
What is a Fair Rent Raise/Increase?
Acknowledging tenants’ rights in England is essential to remember whether you own a house or live in a rental property. If we discuss a rent increase, ensure it is fair and realistic for both parties.
According to the Stats, the Homelet Rental Index declares the average rent in the United Kingdom is around 1100£ to 1300£, depending upon the location and square of the house.
However, there is no specific legal limit for private property landlords. Private rented sector owners can raise the rent freely (7.7% for social housing in 2024-2025). If tenants think the rent is unfair, they can challenge it in the First-tier Tribunals.
Reasonable Rent Increment in England 2024-2025
Are you renting out a property for the first time? The reasonable rent you can approach is between wage inflation and CPIH. What is CPIH?
CPIH is the most reliable measure of inflation. In addition to the shopping basket of CPI (consumer price index), CPIH includes the costs linked with owning, maintaining, or living in one’s home.
How Does the Inflation Affect the Rent Rise in 2024?
The Office For National Statistics (ONS) shows that CPIH inflation rose by 2.8% from June 2023 to 2024. Concerning wage inflation, the data released by ONS in 2024 shows that annual growth in pay, including bonuses, increased by 5.7% in April 2023.
That means a 5% rent increase is reasonable for tenants in 2024.
Formula Rent (2014-15 to 2024-25) Inflation Table
The following table shows the formula for rent inflation from 2014 to 2025. Look out!
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2014-15 | 3.2% | 0.5% | 3.7% |
| 2015-16 | 1.2% | 1.0% | 2.2% |
| 2016-17 | N/A | N/A | -1.0% |
| 2017-18 | N/A | N/A | -1.0% |
| 2018-19 | N/A | N/A | -1.0% |
| 2019-20 | N/A | N/A | -1.0% |
| 2020-21 | 1.7% | 1.0% | 2.7% |
| 2021-22 | 0.5% | 1.0% | 1.5% |
| 2022-23 | 3.1% | 1.0% | 4.1% |
| 2023-24 | 10.1% | 1.0% | 11.1% |
| 2024-25 | 6.7% | 1.0% | 7.7% |
This formula rent inflation sheet could help you better understand the stats and numbers about inflation or an additional percentage in the past ten years.
What is a Section 13 Notice?
Section 13 notice is part of the Housing Act 1988. According to the notice, landlords can increase rental property rent once a year. However, this section is implemented only if the tenancy agreement is periodic.
A periodic tenancy agreement is an agreement without any specific end date.
What Makes a Section 13 Notice Invalid?
As a tenant, respond to the Section 13 notice only after checking its validity. A section 13 notice might be invalid if;
- The landlord didn’t provide the notice before the rent increase.
- A landlord tries to raise the rent even if your tenancy agreement is fixed-term.
- The landlord hasn’t signed the section 13 notice.
- The landlord implemented section 13 one year before the completion.
- The name of the landlord or tenant is not right.
How Much Can a Landlord Increase Rent and When?
According to the rule of thumb, the rents might increase once a year. However, it entirely depends on the tenancy requirements and contract. However, the frequency of increments in rent depends on the following contractual terms:
- Tenancy Agreement Clause
If there is a clause regarding the increment in rent yearly in the tenancy agreement, the tenant has to pay the increased rent after completing the one year in rental property.
Landlords also have to follow this clause, and they cannot demand a rent increase before the end of the set time of the year.
- Periodic Tenancy Agreement
According to the periodic tenancy agreement, a landlord can only demand the raised rent from the tenant if he agrees. Under a periodic tenancy agreement, the landlord can request a rent increase twice a year.
However, landlords and tenants can use section 13 only once a year in the UK.
- Fixed-Term Tenancy Agreement
Landlords cannot force the tenants to raise the rent under a fixed-term tenancy agreement. However, they can request a rent review only if they have included it in the tenancy agreement.
If the tenants disagree or have no rent review clause, landlords cannot demand a rent raise before the fixed-term tenancy agreement is completed.
However, the landlords can raise the rent twice a year or after every six months if the fixed-term tenancy agreement is for six months only.
When Can Landlords Use Section 13 to Raise Rent?
Landlords and letting agents can request a rent raise under section 13 only during periodic tenancies. However, the landlords cannot use section 13 during the first year of periodic tenancy.
Landlords can also not use section 13 if the tenancy agreement includes a rent review clause. However, rents can be increased once a year under section 13, whether the clause is included in the tenancy agreement or not.
However, landlords and letting agents can increase the rents only with mutual discussion with the tenants in the case of the fixed-term tenancy agreement.
How to Respond to a Valid Section 13 Notice?
As a responsible tenant, you have to respond to the Section 13 notice as soon as possible. If you fail to do so, the landlord will consider it as an agreement.
You can write a note to your landlord, mentioning you are not okay with a sudden increase in the rent, especially if it is before the year. The best thing is that you can also challenge the Section 13 notice if the rental property doesn’t meet property standards as others in your area.
If you cannot handle this situation, contact a professional letting agent or property management company, Home World Management. We will handle the rent review clause or section 13 notice on your behalf.
If you are renting out a property for the first time or are unaware of tenants’ rights in England, remember your landlord has a right to evict you if you don’t pay the increased rent once the Section 13 notice proves valid.