Notice of Rent Increase

What is a notice of rent increase?

A rent increase letter is an official notice sent by the landlord to the tenant to inform them about the intention to increase the rent under a fixed-term or periodic tenancy. A standard rent increase form letter outlines briefly the reasons for the increase, the old and new amounts of the rent, details of the original tenancy, as well as any other additional information.

This template for a rent increase letter can be customised for various types of residential tenancies across the United Kingdom. This document is fully compliant with the recent updates and changes to the Housing Act 1998 and Protection from Eviction Act 1977.

What should this rent increase letter template include?

A standard sample rent increase letter usually has a simple structure. The letter normally includes the following mandatory elements:

• Landlord Details. The letter must outline the full name, contact mail address and details of the landlord sending this letter. If the property is rented out on behalf of the landlord, full details of the property management company should be included as well.
• Tenant Details. This letter about the rent increase shall be sent to all the tenants listed in the original tenancy agreement. If by virtue of the provisions of the original tenancy either of the tenants shall remain the first point of contact with the landlord, in such a case the letter can be sent to this tenant only.
• Tenancy Details. The letter should briefly outline the location of the property and the date the original lease agreement was signed, as well as the purpose of this letter.
• Increase details. A good example of rent increase letter must include the reason for the increase and a reference to the original tenancy agreement allowing such an increase, as well as the new amount of rent in British Pounds.
• Date & Signature. Once the letter is ready, it must be dated and signed by the landlord or the property management company dealing on the landlord’s behalf.

How to legally increase rent in the UK?

Increasing the rent under the ongoing residential tenancy agreements is a straightforward task if you comply with the steps below.

Type of Rent

In the UK, rules governing rent increases differ significantly on the following factors:

• Location of the Property. England, Wales, Scotland and Northern Ireland have their different local tenancy laws dealing with the increase of rent; and
• Type of the tenancy. The notice periods and grounds for termination vary significantly depending on whether this is a periodic or fixed-term tenancy.

Notice Period

The requirements for the duration of the notice period vary depending on the jurisdiction:

England

• Assured Periodic Tenancy. A standard 2 months’ notice is required. The increase cannot be made more than one time per each 12-month period.
• Fixed-term tenancy. No statutory notice is required. An increase is only possible if the provisions of the original tenancy contract provide for it.

Wales

• Periodic Occupation Contract. A general notice in the amount of at least 2 months is normally required.
• Fixed-term occupation contract. An increase of rent is only possible upon the introduction of respective amendments in the text of the original contract. That’s said, it is not possible to increase the rent without the tenant’s approval.

Scotland

• Private Residential Tenancy. The increase of the rent is only possible once a year, provided a prior 3 months’ notice is being sent.
• Short-Assured Tenancy. In a case of short-term rentals, the notice period in the amount of at least one rental period shall apply.

Northern Ireland

• Private Tenancy. Under this type of residential lease agreement, a standard notice period in the amount of at least 3 months is usually required.
• Fixed-term tenancy. The rules governing the rent increase depend exclusively on the provisions of the existing tenancy agreement between the landlord and the tenant.

Tenancy Agreement

Provisions of the existing tenancy agreement affect how an increase of rent shall take place. These rules may influence how to send notifications about the rent increase or increased notice period compared with the statutory requirements.

Who can use this rent increase letter sample?

Our customisable rent increase letter sample can be suitable for:

• landlords based in England, Wales, Scotland and Northern Ireland;
• landlords willing to increase the rent under rolling tenancy and fixed-term tenancy;
• property management companies dealing with the rent increase on owners’ behalf;
• property investors willing to deal with the rent increase in a compliant way.

Why use a professional rent increase letter template?

Having a professional letter template can be helpful for many landlords for the following reasons:

• a template with a clear structure and professional wording;
• a template that aligns with specifically designated tenancy laws;
• a template that is suitable for different types of residential tenancies, including short-term or periodic;
• a document that is fully customisable to the needs of the landlord;
• a template that can be used by property management companies, as well as private landlords.

How to customise this template for rent increase letter?

To get a fully customisable letter template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format –  PDF or Word.
4. E-sign the document online.
5. Make a payment.

The document is ready to be used immediately after the purchase. You can send this letter to your tenant by post or deliver it in person.