For landlords · 7 min read
How to increase the rent legally, without losing the tenant
There is one reliable statutory route to increasing rent on a periodic tenancy: a formal notice proposing a new rent from a specified date, giving the required minimum notice, using the prescribed form. The tenant can refer the proposal to the First-tier Tribunal, which decides the open market rent — and can determine a figure lower than you proposed. That makes evidence, not assertion, the thing that decides whether an increase holds. Increases are capped to once per year and cannot be backdated.
Frequently asked questions
How much notice do I need to give for a rent increase?
A statutory rent increase notice must give at least the minimum period set out in the legislation and take effect from the start of a rent period. Check the current minimum on GOV.UK before serving, as the required period has changed with recent reform.
How often can I increase the rent?
No more than once in any twelve-month period on a periodic tenancy, using the statutory route.
Can a tenant refuse a rent increase?
A tenant cannot simply decline it, but they can refer the proposed rent to the First-tier Tribunal before it takes effect. The tribunal determines the open market rent and can set a figure below the one you proposed.
How much should I increase the rent by?
By what comparable local evidence supports, not by a fixed percentage. Start from a per-property estimate and weigh the increase against the cost of a void and re-letting if the tenant leaves.