Increasing rents under tenancy agreements
Increasing rents under Assured and Assured Shorthold Tenancies
Most of the time the landlord is more in control when it comes to the rent payable by their tenants. If the tenant is unable or unwilling to agree a rent increase, either within the existing assured shorthold tenancy (‘AST’) or on a renewal, the landlord can serve notice under Section 21 of the Housing Act 1988 (“the 1998 Act”) to end the AST (once outside any fixed term or pursuant to any break provision in the agreement) and re-let the property at an acceptable rent.
However, where landlords let to longer term tenants either under assured tenancies or ASTs, or they otherwise have no desire to end the current tenancy, the landlord needs to consider the correct process where they intend to lawfully impose a rent increase. This will be particularly relevant should the Government’s proposals to end the “non-fault” process for possession under Section 21 of the 1998 Act become a reality, creating longer term security of tenure for residential tenants. This Legal Update sets out the process for increasing rents payable under assured tenancies and ASTs.