Section 13 and Rent Increases
With all Assured Shorthold Tenancies landlords can increase the rent after the initial fixed period if it is stated in the tenancy agreement or if the tenant agrees to the increase. There may be a rent increase clause in the tenancy agreement which would have been agreed and signed at the start of the tenancy.
However, if the increase is not stated in the agreement and the tenants dispute the increase then the landlords are required to follow certain procedures if they wish to increase the rent on the property.
The Housing Act 1988 makes it possible for landlords to increase the rent after the initial fixed term by issuing the tenant with a section 13 notice.
Rent increases may be stated in the tenancy agreement, so the tenant would have been made aware of the rent increase in advance by the landlord. If there is no mention of a rent increase in the agreement and the tenant is unwilling to mutually agree the increase then the landlord may issue a section 13 notice.
The Housing Act 1988 makes it a requirement for a landlord to issue the tenant with a Section 13 notice if the increase in rent is not stated in the tenancy agreement and the tenant refuses to agree to the increased rent proposed.
The form giving notice of an increase in rent is required to be completed by the landlord. The form contains information on the rent increase and the starting date for the new rent proposed.
If a landlord decides to increase the rent but does not issue a Section 13 notice then the tenant is not obliged to pay the increase in rent, unless stated in the tenancy agreement.
Increasing rent can cause a lot of problems between tenant and landlord, so be careful before making any irrational decisions.