A Section 21 notice, also known as a “no-fault eviction notice,” allows landlords in England and Wales to repossess their property at the end of a fixed-term tenancy without specifying a reason. While this notice serves its purpose, it can leave tenants wondering: can the landlord raise the rent after using a Section 21 and regaining possession? The answer depends on the situation and the type of tenancy agreement established afterwards. In this article, Can Landlord Increase Rent After Section 21, we take a look at the process and mechanism involved.
Free Initial Telephone Discussion
For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of rent increases, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Understanding Section 21 and Tenancy Types
A Section 21 notice is typically used when a fixed-term tenancy is nearing its end, and the landlord wishes to regain possession. However, it’s important to remember that there are two main types of tenancies:
- Fixed-Term Tenancy: This tenancy agreement outlines a specific duration, usually six or twelve months. The rent amount remains fixed throughout this period unless a rent review clause is explicitly included and signed by both parties.
- Periodic Tenancy: This “rolling tenancy” continues indefinitely with monthly or weekly rent payments. Here, landlords have more leeway regarding rent increases, but they are still subject to regulations.
Scenario 1: New Tenancy Agreement After Section 21
Once a tenant vacates after a Section 21 notice, the landlord regains possession and can choose to:
- Find a New Tenant: In this scenario, the landlord can set a new rental price for the property. Market conditions, property condition, and any improvements made since the previous tenancy will likely influence the new rent amount.
Here’s where the type of tenancy agreement offered to the new tenant becomes crucial:
* **New Fixed-Term Tenancy:** The new rent will be fixed for the duration of the agreement, just like the previous tenancy. The landlord cannot raise the rent during this period unless a rent review clause is included and agreed upon.
* **New Periodic Tenancy:** The landlord can propose rent increases once a year, following the guidelines for periodic tenancies (explained below).
Scenario 2: Tenant Remains After Section 21
In some cases, a tenant may remain in the property after the Section 21 notice period ends, with the landlord’s consent. This situation can lead to two possibilities:
Express Agreement on New Rent
If both parties verbally agree to a new rent amount, this becomes the new legal rent. It’s advisable to have this agreement documented in writing to avoid future disputes.
No Explicit Agreement on Rent
If no new rent is explicitly agreed upon and the tenancy continues, the previous rent amount technically remains in effect. However, the landlord can still propose a rent increase following the guidelines for periodic tenancies.
Rent Increases in Periodic Tenancies
If the tenancy becomes periodic after a Section 21, the following regulations regarding rent increases apply:
- Frequency: Landlords can generally only propose a rent increase once per year.
- Notice Period: The landlord must provide written notice using a government-approved form, typically with one month’s notice for monthly tenancies and six months’ notice for yearly tenancies.
- Fairness of Increase: The rent increase should be fair and in line with similar properties in the local area. Landlords should consider recent market trends, property condition, and any improvements made since the previous tenancy.
Tenant’s Rights When Facing a Rent Increase
As a tenant in a periodic tenancy, you have the right to:
- Accept the Increase: If the increase is reasonable and aligns with local rental trends, you can agree to the new rent by signing the form provided by your landlord.
- Negotiate: You can propose a counter-offer for a lower increase. Researching local rental prices for comparable properties strengthens your negotiation position.
- Refuse the Increase: You are well within your rights to reject the proposed increase. It’s advisable to respond in writing, stating your reasons for refusal.
Landlord’s Options if You Refuse
If you decline the rent increase proposal, your landlord has limited options:
- Offer a Revised Increase: They may propose a new, lower increase in an attempt to reach an agreement.
- Serve a Section 13 Notice: This notice formally proposes a new rent. You have two options here:
- Accept the New Rent: If you agree with the proposed rent in the Section 13 notice, the new rent becomes effective on the specified date.
- Dispute the Increase: You can challenge the fairness of the increase at a valuation tribunal. This is a free service where an independent adjudicator will assess the proposed rent and issue a ruling.
How we can help
We have a proven track record of helping clients deal with rent increase issues. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Residential Property Solicitors
It is important for you to be well informed about the issues and possible implications of a rent increase. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Residential Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
