How much can my landlord increase my rent by – and with how much notice?

At its most recent meeting, the Bank of England opted to hold the Bank Rate at 5.25pc. 

Many mortgage lenders have been cutting rates as a results, but landlords are facing 5.49pc for an average two-year residential buy-to-let mortgage, according to analysts Moneyfacts.

Many landlords struggling to keep pace with successive rate rises have in turn passed costs on to tenants. Rent rises will be felt acutely by young people, who are far more likely to live in rented accommodation. 

Here, Telegraph Money details your rights if you’re facing a rent rise, and what you can do to haggle increases with your landlord.

How much notice does my landlord need to give to increase my rent?

For a periodic tenancy, which works on a rolling week-by-week or month-by-month basis, a landlord is not allowed to increase rent more than once a year without the tenant’s agreement. 

However, most tenants in the country rent on a fixed-term basis, usually for a year at a time. In these cases the landlord can only increase the rent if the tenant agrees – and if they do not then the rent can only be increased after the fixed term ends.

In most scenarios, a rent increase will be floated by a landlord towards the end of a fixed term, if the tenant signals that they wish to renew the tenancy. If, like most renters, you pay rent weekly or monthly, your landlord must give you a month’s notice. 

Is there a cap on rental price increases?

For any tenancy, rent rises must be “fair and realistic”, according to the Government. This means any increase must be “in line with average local rents”. 

These can be murky waters for a tenant to argue, and there are few ways to challenge a landlord on whether a property is worth the rent being proposed. 

The Renters’ Reform Bill has proposed the creation of an ombudsman, which would allow tenants to protest rent rises, but until it is in place the only restriction on what rents landlords can charge for a property is whether they can find tenants willing to pay them. 

What if my landlord is selling the property I’m renting?

Until Section 21 is abolished under the Renters’ Reform Bill – a move which has previously seen huge opposition from Tory backbench MPs, and may be delayed – a landlord can force a tenant to leave a property without giving a reason. This is known as a “no-fault eviction”. 

In these cases, a landlord has to give a minimum of two months’ notice. 

What you can do if you face a rent increase

Do your research

If you are in a position where the suggested rent increase is beyond your budget, there are two outcomes to prepare for: one is that your landlord agrees to a less severe increase, and the other is you move out. 

In both cases, you should have a good grasp of the state of the rental market in your area. 

Look at similar properties on Rightmove and Zoopla and take note of what rents they are charging. If the rents are lower than what you are paying now, you will have a good case to argue with your landlord or letting agent – and if worst comes to worst you will have alternatives should you be forced to move out. 

Decide on a counteroffer

When suggesting a counteroffer it is important to be realistic about what your landlord is likely to agree. In the current climate, rents are inevitably going to rise, so it would be naive to suggest your rent not go up at all.

However, the cost to a landlord of finding a new tenant is high, and most would prefer to avoid the hassle of replacing you, so suggesting a lower increase might work. 

It is also worth bearing in mind that some landlords are advised by letting agents, who will advise them to suggest rent increases with the expectation they will receive a counteroffer, so do not be afraid of negotiating.

Put your case to the landlord

It might be tempting to make several points to your landlord about the cost of living and the impact a rent rise will have on your life, but this will get you nowhere.

Try not to get distracted by demanding why your landlord is raising the rent, or threatening to move out as your first move. It may not play well if your landlord thinks you are likely to be unable to meet a rent payment in future.

As outlined above, the only restriction on rent increases is the local market, so if you come armed with information about what rents are like in similar properties in your area you will be in a much stronger position to negotiate. Also reiterate that you are (presumably) a good tenant and have kept the property in good condition.

If your landlord still does not agree to your suggested rent, you may be able to meet them halfway or make it clear that you will find alternative arrangements elsewhere. Tenants must give their landlord one month’s notice before a tenancy ends if they do not intend to renew, so you will have some time to look at other prospects if you choose to leave.

If you tell the landlord at this point that the suggested rent will result in you renting elsewhere, they may reconsider. 

This article is kept updated with the latest information.