Rent increases are one of the most common causes of dispute between landlords and tenants in England and Wales. With rising interest rates, increased compliance costs, and pressure on the rental market, many landlords are seeking to increase rents. At the same time, tenants are becoming more aware of their legal rights and are increasingly willing to challenge rent rises they believe are unfair or unlawful.
In London, where rental demand remains high and affordability is a significant concern, disputes over rent increases are particularly prevalent. Understanding when a rent increase is lawful and how it can be challenged is essential for both landlords and tenants.
At Penerley Solicitors, we advise clients across London on rent increase disputes, tenancy rights, and enforcement options. Early legal advice can help prevent disputes from escalating and reduce the risk of costly litigation.
When rent increases are lawful
The ability to increase rent depends largely on the type of tenancy and the terms of the tenancy agreement. Most private tenants rent under assured shorthold tenancies, where rent increases are governed either by contractual clauses or by statute.
If a tenancy agreement contains a rent review clause, the landlord may increase the rent in accordance with that clause. The wording must be clear and precise. Ambiguous or unfair clauses may be unenforceable, particularly where they do not specify how or when rent can be increased.
Where there is no rent review clause, or where a fixed term has ended, landlords may rely on a statutory procedure to increase rent. This usually involves serving a formal notice proposing a new rent. The increase must reflect the market rent for the property and must not be excessive.
Importantly, landlords cannot increase rent arbitrarily. Any attempt to impose an increase without following the correct legal process may be invalid, leaving the landlord exposed to challenge.
Challenging rent increases and common disputes
Tenants have the right to challenge rent increases they believe are unreasonable. In many cases, disputes arise because tenants feel pressured to accept an increase without understanding their rights or because notices are served incorrectly.
A proposed rent increase can usually be challenged by applying to the First-tier Tribunal, which will assess whether the new rent reflects the open market value. The tribunal considers comparable properties, location, condition, and local demand. While landlords are entitled to charge market rent, they cannot use the process to impose excessive increases.
Common issues that give rise to disputes include failure to serve proper notice, attempts to increase rent during a fixed term without contractual authority, and increases imposed in response to repair complaints. In some cases, rent increases may be challenged as retaliatory, particularly where a tenant has raised concerns about disrepair.
Tenants should also be aware that time limits apply. Applications to challenge rent increases must be made within strict deadlines, and delay can result in the increase taking effect by default.
Risks for landlords and practical steps to take
For landlords, rent increase disputes carry both financial and legal risk. An unlawful increase may be set aside, and poorly handled disputes can damage landlord tenant relationships or lead to further claims.
To reduce risk, landlords should take proactive steps to ensure compliance and fairness. These include:
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Reviewing tenancy agreements to confirm whether rent review clauses are valid and clearly drafted
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Ensuring statutory notices are completed accurately and served within the correct timeframe
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Keeping evidence of comparable market rents to support any proposed increase
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Avoiding rent increases that could be perceived as retaliatory following repair requests
Early legal advice can help landlords assess whether a proposed increase is likely to be upheld and how best to implement it.
For tenants, understanding the legal framework is equally important. Not all rent increases are unlawful, but tenants are entitled to transparency and a fair process. Seeking advice early can help tenants decide whether to challenge an increase or negotiate a resolution.
How Penerley Solicitors can help
Rent increase disputes are becoming increasingly common, particularly in London’s pressured rental market. Whether you are a landlord seeking to increase rent lawfully or a tenant facing an unaffordable or unfair increase, specialist legal advice is essential.
Penerley Solicitors advises landlords and tenants on all aspects of landlord and tenant law, including rent increases, statutory notices, tribunal applications, and tenancy disputes. We provide clear, practical advice tailored to your circumstances, with a focus on resolving issues efficiently and effectively.
If you are facing a rent increase dispute or need advice on your rights and obligations, contact Penerley Solicitors today to arrange a confidential consultation and find out how we can help.
