Rent and the Law

Once a tenancy agreement has been signed, it is a binding contract between the parties. Just as the tenant is bound to pay the rent throughout the length of the tenancy, so the landlord has agreed to accept that amount for the length of the letting.

Setting the Rent

When setting the rent, landlords should make sure that it is realistic, and comparable with similar properties in the area, whilst still giving them a decent return on their investment. They must also be prepared to be flexible and lower the rent to either secure a long-term tenant, or when tenants are in short supply. It's often better to lower the rent than have a property empty for a number of weeks.

Rent Increases

The landlord cannot increase the rent without the tenant's agreement - and why should they agree? In a short-term tenancy (for example, six or twelve months) this will probably not be a problem, but in a longer let the effects of inflation will soon adversely affect the value of the rent agreed. Therefore, it is essential for the tenancy agreement for a long let to include provision allowing the landlord to increase the rent.

Any provision in the agreement allowing for increase must be fair, within the meaning of the Unfair Terms in Consumer Contracts Regulations. A provision that allows the landlord to increase the rent at any time, for any reason, and to any amount they think fit, will probably be held to be unfair and thus void.

The rent cannot be raised more than once for the same tenant in one year, and a minimum of one month's notice must be given. Tenants have the right to challenge a rent increase if they think it is unfair by referring the rent to a Rent Assessment Committee. The committee will prevent the landlord from raising the rent above the ordinary market rent for that type of property.