Over half (53 per cent) of landlords increased their rent between 2023 and 2024, according to Simply Business research. And with the Renters\u2019 Rights Bill set to change the way landlords can increase rent, understanding Section 13 notices will be more important than ever. <\/p>\n\n\n\n
Follow our guide to understand how Section 13 can currently be used, plus how it will change when the Renters\u2019 Rights Bill becomes law.<\/p>\n\n\n\n
A Section 13 notice is usually served if the landlord has spoken to the tenant about increasing the rent but they can\u2019t reach an agreement. If the tenant accepts the Section 13 notice, they\u2019ll start paying the new rent from their next payment day.<\/p>\n\n\n\n
Section 13 is part of the Housing Act 1988. It\u2019s a formal process that requires the landlord to fill out a specific form and serve it to the tenant.<\/p>\n\n\n\n
Landlords can only serve a Section 13 notice once a year.<\/p>\n\n\n\n
There\u2019s no limit on how much landlords can increase their tenant\u2019s rent. However, the government says it must be:<\/p>\n\n\n\n
What counts as a fair rent increase is likely to depend on how much your tenant currently pays. Simply Business\u2019s Landlord Report<\/a> found that almost half (47 per cent) of landlords who increased their rent between 2023 and 2024, raised it by between one and 10 per cent. <\/p>\n\n\n\n And less than one in 10 (nine per cent) increased their rent by over 10 per cent. <\/p>\n\n\n\n Once the Renters\u2019 Rights Bill<\/a> becomes law, there\u2019ll be significant changes to how landlords can increase tenants\u2019 rent.\u00a0<\/p>\n\n\n\n Firstly, you\u2019ll no longer be able to increase rent through a rent review clause in the tenancy agreement. A Section 13 notice will be the only way and a two-month notice period will be required. <\/p>\n\n\n\n And under the new regulations, you\u2019ll only be able to increase your rent once a year and the increase must be inline with market rates. <\/p>\n\n\n\n Tenants will be able to challenge rent increases if they think they\u2019re unreasonable or exceed the market rate.<\/p>\n<\/div>\n\n\n\n To serve your tenant with a Section 13 notice, you\u2019ll need to fill out a \u2018Tenancy form 4<\/a>\u2019, which you can download from the government website.<\/p>\n\n\n\n The form requires you to fill in:<\/p>\n\n\n\n It also includes guidance notes for landlords on how to complete the form and guidance notes for tenants on what they must do after being served with the form.<\/p>\n\n\n\n Once you\u2019ve completed the form, you deliver it to the tenant by post, in person, or by email.<\/p>\n\n\n\n Increasing the rent is a sensitive issue, so make sure you seek professional advice if you\u2019re unsure of anything.<\/p>\n\n\n\n It\u2019s important to remember this process is likely to change once the Renters\u2019 Rights Bill becomes law.<\/p>\n<\/div>\n\n\n\n The minimum notice period for tenants who pay rent monthly or more frequently (weekly or fortnightly) is one month.<\/p>\n\n\n\n If your tenants pay their rent annually, then the minimum notice period for serving a Section 13 notice is six months.<\/p>\n\n\n\n When the Renters\u2019 Rights Bill becomes law, the minimum notice period for serving a Section 13 notice will increase to two months.<\/p>\n\n\n\n A Section 13 notice can only be served if the tenant is on a periodic tenancy (a tenancy without a fixed end date).<\/p>\n\n\n\n On top of this, you can only use a Section 13 notice after the first year of the periodic tenancy.<\/p>\n\n\n\n It\u2019s important to note that the Renters\u2019 Rights Bill pledges to scrap assured shorthold tenancies and make all tenancies periodic. As a result, using a Section 13 notice will be the only way for landlords to increase a tenant\u2019s rent.<\/p>\n\n\n\n Read more: <\/strong>A guide to the different types of tenancy agreements<\/a><\/p>\n\n\n\n For many landlords, rising costs have meant they\u2019ve had no option but to increase their rent. However, it\u2019s important to remember that tenants\u2019 costs are also increasing.<\/p>\n\n\n\n Raising your tenants\u2019 rent is a sensitive issue and should only be done when necessary. It\u2019s important to follow the Section 13 process as this protects both you and your tenant. But you should balance the impact on your tenant against the benefit of the rent increase. <\/p>\n\n\n\n Increasing your rent can easily lead to your tenant falling into rent arrears<\/a> or potentially looking for somewhere else to live. Both scenarios can be complicated for you and your tenant and you should do what you can to avoid them. <\/p>\n\n\n\n Be open to negotiating with your tenant about a potential rent increase. Explain why you\u2019re looking to increase the rent, and see what a realistic amount is for them. Hopefully you\u2019ll arrive at something that works for both parties.\u00a0<\/p>\n\n\n\n For a Section 13 notice to be valid, it must be filled out correctly. Here are some of the things it\u2019s easy to get wrong:<\/p>\n\n\n\n The tenant can respond to the Section 13 notice to accept the rent increase. Equally, if the tenant doesn\u2019t respond to the notice, then it\u2019s assumed they accept the increase and will be required to pay the new rent.<\/p>\n\n\n\n If the tenant doesn\u2019t accept the proposed increase, they can speak to their landlord to come to an agreement.<\/p>\n\n\n\n Alternatively, if they don\u2019t want to speak to the landlord, they can refer the proposed increase to a First-tier Property Tribunal, which will assess the case and set a new rent for the property.<\/p>\n\n\n\n The tribunal may set a rent that is higher, lower, or the same as the proposed new rent. This is because it will be based on what rent the landlord could expect to charge for the property if they rented it out to new tenants on the same terms.<\/p>\n\n\n\n Remember, the Section 13 process will change once the measures in the Renters\u2019 Rights Bill are introduced. As a result, it\u2019s important for landlords to keep up to date with the dates and details when they\u2019re released by the government.<\/p>\n<\/div>\n\n\n\n If a landlord wants to increase the rent, the first port of call is usually to come to a mutual agreement with the tenant.<\/p>\n\n\n\n To do this, you\u2019ll need to contact the tenant about the proposed increase and if they agree, send them a written agreement. This will need to include the value of the new rent and the date from which it will need to be paid.<\/p>\n\n\n\n For the new rent to become effective, both the landlord and the tenant will need to date and sign the agreement. It\u2019s important that you keep a record of the signed agreement.<\/p>\n\n\n\n A rent review clause is another way to increase the rent in your property, but it\u2019s only valid during fixed-term tenancies.<\/p>\n\n\n\n This clause, included in the tenancy agreement<\/a>, should give details of:<\/p>\n\n\n\n Once a tenancy moves from fixed-term to periodic, the rent review clause will no longer be valid and the landlord will need to increase the rent by mutual agreement or Section 13 notice.<\/p>\n\n\n\n After the Renters\u2019 Rights Bill becomes law, landlords will no longer be able to use rent review clauses.<\/p>\n\n\n\n A Section 13 notice is a legal form landlords can use to increase their tenants\u2019 rent.<\/p>\n\n\n\n A landlord must give at least one month\u2019s notice when they issue a Section 13 notice. The Section 13 notice period will increase to two months once the Renters\u2019 Rights Bill becomes law.<\/p>\n\n\n\n Yes, a tenant can refuse the rent increase set out by their landlord in a Section 13 notice. They can do this by appealing to a First-tier tribunal, which will set a new rent for the property.<\/p>\n\n\n\n Over 200,000 UK landlord policies, a 9\/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote<\/a> today.<\/p>\n\n\n\nRenters\u2019 Rights Bill: changes to rent increases on the way<\/h2>\n\n\n\n
How to serve a Section 13 notice<\/strong><\/h2>\n\n\n\n
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What is a Section 13 notice period?<\/strong><\/h3>\n\n\n\n
Section 13 can only be used for periodic tenancies<\/strong><\/h3>\n\n\n\n
Tenancy types at a glance<\/strong><\/h4>\n\n\n\n
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How to approach raising your tenants\u2019 rent<\/strong><\/h2>\n\n\n\n
Common mistakes when completing a Section 13 form<\/strong><\/h2>\n\n\n\n
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How can a tenant accept a Section 13 rent increase?<\/strong><\/h2>\n\n\n\n
Section 13 \u2013 landlord compliance checklist<\/h2>\n\n\n\n
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What are the other ways for landlords to increase the rent?<\/strong><\/h2>\n\n\n\n
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Section 13 FAQs<\/strong><\/h2>\n\n\n\n
What is a Section 13 notice?<\/h3>\n\n\n\n
How much notice must I give with a Section 13 rent increase?<\/h3>\n\n\n\n
Can a tenant refuse a Section 13 rent increase?<\/h3>\n\n\n\n
More guides for buy-to-let landlords<\/h3>\n\n\n\n
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Get set with tailored landlord cover<\/h3>\n\n\n\n