Procedure for increasing rents in England and Wales

Section 13(2)  Housing Act 1988, as amended by the Regulatory Reform (Assured Periodic Tenancies)(Rent Increases) Order 2003

This formal rent increase procedure exists to allow the interests of both landlords and tenants to be protected. However, this does not prevent individual negotiations to take place to increase the rent on the grant of a new tenancy. Nor does it prevent the landlord placing a rent increase clause in the tenancy agreement providing that it is possible for the tenant to know the amount of the increase in advance. So reference could be made to a percentage increase or an increase by reference to the retail price index. The provision of such a clause would remove the right to use a section 13 notice.

Completing the Form: 

The relevant form will now be Form 4b for rent increases in England and Form 4d for rent increases in Wales (this form is also available in Welsh). Copies of these forms are available on the Letting Centre's website at www.letlink.co.uk. The Form is relatively straightforward to complete and comes with comprehensive notes for both the landlord and the tenant. The tenant and the property are identified as are the landlord and/or his agent. The amount of the increased rent and its proposed commencement date are specified together with any increased charges. Also the first rent increase date after 11^th February 2003 needs to be specified. Tenancies in Scotland are dealt with in a different way (see www.scotland.gov.uk/housing/leaflets/default.asp) and the relevant form is AT 3(L). Once completed the form should be served on the tenant. The landlord must give the tenant at least one month's notice of the proposed rent increase if the rent is paid on a weekly or monthly basis, more if the rent period is longer and to take effect at the beginning of a period of the tenancy.

Tenant's response:

The tenant on receipt of the notice has two options:-

• Accept the increase in rent and makes arrangements with their bank or building society to increase the amount paid as from the date specified in clause 4 of the notice; or

• Decline to accept the rent increase and refer the notice to your local rent assessment committee. The addresses of these committees are listed below. The notice has to be referred to the committee using a form entitled "Application referring a notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee". This reference must take place before the implementation date specified in the original notice.

Rent Assessment Committee:

The Rent Assessment Committee is a tribunal of two or three people set up by law under the provisions of the Rent Act 1977. It is an independent body, which is completely unconnected to the parties or any other public agency. Committees are organised by Rent Assessment Panels, which are part of the Residential Property Tribunal Service.

The clerk to the Committee will write to both parties to inform them that an oral hearing is to be arranged. The parties will also be asked if they would like to make what are called "written representations".  Parties can choose not to have a hearing if they are content for the matter to be dealt with on the basis of the written representations and all other relevant available evidence. Parties are advised not to produce documentation for the first time at a hearing; otherwise the hearing will often need to be adjourned to enable the other party to consider the new evidence

When a hearing is arranged the Committee will convene at a particular time and place for the purpose of enabling both parties to put their cases to the Committee. Both the landlord and the tenant may represent themselves or they may have representation. The Committee may also ask some questions in order to make sure that it has all the relevant information to enable it to come to a decision.

If requested by either party or if the Committee considers it necessary they will visit the property. A visit is considered necessary in most cases. A visit will only take place on a date and at an approximate time notified to the parties. With the permission of the tenant the Committee will normally want to inspect the inside of the property as well as the outside and any common parts. The landlord is entitled to be present with the tenant's permission. An inspection will usually be on the day of the hearing or decision. If the Committee is unable to gain access at the appointed time it may decide to make another appointment and adjourn the matter until then. Alternatively it may decide that it has sufficient information, including that obtained from an external inspection, to be able to go ahead and make a decision in the absence of an internal inspection.

The clerk to the Committee will write to the parties and enclose the decision notice that specifies the rent determined by the Committee and a copy of the written reasons for the Committee's decision. These reasons may be in summary form or in full. They will be summary unless either party has already asked for full reasons or the Committee deems it appropriate to issue full reasons. If a summary has been requested either party can within 21 days of receipt ask for full reasons. The Committee should issue these within 28 days of receipt of the request.

Rent Assessment Committee areas:

Northern Rent Assessment Panel

Tel: 0845 1002614     Fax: 0161 237 3656

Midland Rent Assessment Panel

2nd Floor, East Wing, Ladywood House
45-46 Stephenson Street
Birmingham B2 4DH

Tel: 0845 1002615      Fax: 0121 643 7605

Eastern Rent Assessment Panel

Great Eastern House
Tenison Road
Cambridge CB1 2TR

Tel: 0845 1002616     Fax: 01223 505116

London Rent Assessment Panel

2nd Floor, 10 Alfred Place
London WC1E 7LR

Tel: 020 7446 7700     Fax: 020 7637 1250

Southern Rent Assessment Panel

1st Floor, 1 Market Avenue
Chichester PO19 1JU

Tel: 0845 1002617     Fax: 01243 779389

Wales Rent Assessment Panel

1st Floor, West Wing, Southgate House
Wood Street
Cardiff CF10 1EW

Tel: 029 20231687     Fax: 029 20236146

Sources for Further Information:

The Letting Centre, website: www.letlink.co.uk

The Residential Property Tribunal Service, 10 Alfred Place, London WC1E 7LR

Tel: 020 7446 7751 or 020 7446 7752    Fax: 020 7580 5684  Website: www.rpts.gov.uk