Understanding Fair Rent Increases in East London

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Brian T George
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Introduction to Fair Rent Increases

With rising living costs and high demand among renters, rent increases have become a common scenario in East London. It’s essential to understand what constitutes a fair rent increase, whether you are a landlord or a tenant. This guide breaks down the key factors influencing rent hikes and provides clarity on what is considered reasonable in the East London rental market.

Reasons for Rent Increases

In the UK, rent increases should be reasonable and fair. Common reasons for landlords to raise the rent include rising inflation rates, increased costs, or the property’s rising value in the local rental market. Tenants are expected to agree to the rent increase if the new amount is deemed reasonable.

When Can a Landlord Raise the Rent?

The rules on rent increases vary depending on the type of tenancy and the terms of the tenancy agreement:

Periodic Tenancies: Landlords can only increase the rent according to the terms of the rent review clause, if there is one, or by serving tenants with a Section 13 notice a maximum of once a year.

Fixed Term Tenancies: Rent cannot be raised during a fixed term unless there’s a rent review clause or the tenants agree to the increase in writing.

Rent Review Clauses: These clauses allow landlords to increase the rent after a set period during a fixed term tenancy or once every 12 months for periodic tenancies. Rent increases can be linked to factors like local market prices or the Retail Price Index (RPI).

How Much Notice is Required?

Notice periods for rent increases depend on the tenancy type:

Periodic Tenancies: Landlords must provide at least one month’s notice before the rent increase can take effect.

Fixed-Term Tenancies: Landlords cannot increase the rent unless specified in the rent review clause, which includes the notice period.

Section 13 Notices: If the tenancy agreement does not specify terms for increasing rent, landlords can issue a Section 13 notice with at least one month’s notice for periodic tenancies or six months if the rent is paid yearly. This increase can only be enacted once per year.

What is a Fair Rent Increase?

According to the Office for National Statistics, average rents in Barking and Dagenham rose by 7% between February 2023 and February 2024, bringing them close to £1,400. While no legal limit exists for most private rental properties, fair rent increases should follow inflation and match the local market value. For regulated tenancies, the limit is set by a rent officer at the Valuation Office Agency (VOA).

Conclusion

While there are no official limits on rent increases, understanding the guidelines can help landlords and tenants navigate these changes fairly. If you have questions about fair rent increases in East London, speak to local agents who are knowledgeable about the market trends and can provide tailored advice.

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