Rent increase using Section 13 Notices
If the tenancy is an assured or assured shorthold tenancy the landlord can use a formal procedure under section 13 of the Housing Act 1988 to propose a rent increase. To do this the landlord needs to use a special form, which is obtainable from Law Stationers, some landlord associations, and some of the online services for landlords on the internet.
The rent can only be increased by section 13 after the fixed term has ended and can only be used once every 12 months.
If the tenancy is an assured or assured shorthold tenancy the landlord can use a formal procedure under section 13 of the Housing Act 1988 to propose a rent increase. To do this the landlord needs to use a special form, which is obtainable from Law Stationers, some landlord associations, and some of the online services for landlords on the internet.
The rent can only be increased by section 13 after the fixed term has ended and can only be used once every 12 months.
Under the amended Section 13, two new forms 4B and 4C have been prescribed for use in England, and two in Wales 4D and 4E. These replace 4A, one is for a proposed new rent for an assured periodic tenancy, the other for assured agricultural occupancy.
The form must be completed fully and served on the tenant with the guidance notes.
At least one month’s notice must be given to the tenant. If the tenant does nothing during this period, then the rent increase will take effect.
However if the tenant feels the rent increase is too high then he can refer it to the Rent Assessment Committee for review. The application must be made not later than the last day of the month period or it will be invalid and the increased rent will stand.
If the rent is challenged the matter will be considered by the Rent Assessment Committee who, if they consider the rent is not a market rent, will substitute what they consider is a market rent for the rent proposed. (This is not always in the tenant’s favour as it is not unknown for them to consider that the proposed rent is too low!)
NOTE: April 2015 – Changes to the Section 13 Notice
The wording of the Section 13 Notice has changed with effect from Monday 6 April 2015.
If your tenancy does not include a rent review clause, you must serve a Section 13 Notice if you want to increase the rent.
The new Section 13 notice is available to download from NLA Forms.
Wales
With the amendments to these regulations, the Welsh Assembly has prescribed two new forms, 4D and 4E. These are bilingual and contain a provision that the notice is to the completed in the language of the original tenancy agreement unless both landlord and tenant agree to the use of a different language. It must be completed fully and served on the tenant.