The Renters Rights Bill - Controls on rent reviews and a ban on in-tenancy rent review clauses 📈
The Renters Right Bill will regulate rent increases and reform the rent tribunal system. Here we look at what the government plan to do.
Landlords will still be able to increase rents on an annual basis, but these must be market rents i.e. you should be able to demonstrate that the new rent being proposed is the rent you would be likely to receive if the property was being advertised to rent. You would need to have comparable evidence to support the proposed increase.
Tenants will have the right to appeal against the increase via a first tier tribunal, if they believe the landlord is looking for above market value rent. The tribunal will determine the market rent value. The rent tribunal system will be reformed so that it can not award a new rent level that is higher than that initially pursued by the landlord. It will also not be able to backdate rent increases, and will be able to defer rent increases by up to 2 months in cases where a tenant can demonstrate undue hardship.
This is aimed to protect tenants from evictions where a landlord wishes to increase rents to above market value, purely designed to force the tenant to give notice.
Rent increases would require a section 13 notice to be served on the tenant and provide 2 months notice of the proposed increase.
Rent review clauses in tenancy agreements will be banned.