Section 13 Rent Increase Notice (UK)

A Section 13 Rent Increase Notice in the United Kingdom is a legally binding written instrument.

Section 13 of the Housing Act 1988 was introduced to provide a transparent and fair procedure for rent increases in the private rented sector in England and Wales, balanced by the tenant's right to refer a proposed increase to an independent tribunal if they consider it above the open market rate. The notice triggers a statutory process: if the tenant does not object before the proposed increase date, the new rent takes effect automatically; if the tenant refers the matter to the First-tier Tribunal (Property Chamber), the existing rent continues until the Tribunal makes its determination.

The assured shorthold tenancy (AST) is the most common form of residential tenancy in England, governed by Part I of the Housing Act 1988. Most residential lettings in England are ASTs. A fixed-term AST converts to a statutory periodic tenancy when the fixed term expires and neither the landlord nor the tenant has served a notice to end the tenancy. The statutory periodic tenancy runs on the same terms as the expired fixed-term AST (by virtue of section 5(3) of the Housing Act 1988), running from period to period (usually monthly) until it is ended by a valid notice to quit, a section 21 notice, a section 8 notice, or the tenant's own notice to leave.

The section 13 notice must be in the prescribed form. The Assured Tenancies and Agricultural Occupancies (Forms) Regulations 1997 (SI 1997/194), as amended, prescribe the form that section 13 notices must take. A notice that is not in substantially the correct prescribed form, or that does not comply with the notice period requirements in section 13(4) of the Housing Act 1988, is invalid and cannot be relied upon by the landlord to increase the rent.

The Renters (Reform) Act 2024 (which received Royal Assent in May 2024) abolishes fixed-term ASTs and replaces them with periodic tenancies for all new and existing private residential tenancies in England once the relevant provisions are brought into force. Under the Renters (Reform) Act 2024, landlords are limited to one rent increase per year and must use the section 13 procedure (with a revised form) to propose any increase. The new Act also strengthens the tenant's right to challenge increases at the First-tier Tribunal.

Section 13 applies only in England. In Wales, rent increases for occupation contracts under the Renting Homes (Wales) Act 2016 are governed by that Act's own provisions (section 103 and Schedule 9). In Scotland, the Private Housing (Tenancies) (Scotland) Act 2016 provides its own rent increase procedure requiring three months' notice.

A Section 13 Rent Increase Notice is needed when a private landlord in England wishes to increase the rent of a periodic assured tenancy or periodic assured shorthold tenancy where the tenancy agreement contains no rent review clause or where the rent review clause in the agreement has not been used.

A section 13 notice is needed when a fixed-term AST has expired and the tenancy has become a statutory periodic tenancy under section 5(3) of the Housing Act 1988. At this stage, the original contractual rent continues unless the landlord and tenant agree a new rent or the landlord serves a valid section 13 notice. Many landlords who do not routinely review rents on periodic tenancies find that their rental income falls significantly behind the open market rate over time; the section 13 procedure allows them to bring the rent up to market rate without ending the tenancy.

A section 13 notice is needed when the landlord and tenant have not been able to agree a new rent informally. Where the tenant agrees to a rent increase, the increase can be documented by a simple written agreement, avoiding the need for a formal section 13 notice. However, where the tenant refuses to agree to an increase the landlord considers reasonable, the section 13 notice is the only lawful mechanism to impose an increase without ending the tenancy and re-letting at a higher rent.

Landlords who acquired property through a buy-to-let mortgage and who are facing increased mortgage costs following interest rate rises may need to serve a section 13 notice to increase the rent to a level that covers the revised mortgage payments. The landlord must be aware that the First-tier Tribunal (Property Chamber) will assess the proposed rent against comparable open market rents and will not award a rent that exceeds the market rate simply because the landlord's costs have increased.

Landlords selling a tenanted property to an investor buyer benefit from confirming that the rent reflects current market rates before or at the time of sale. A below-market rent reduces the property's yield and affects its sale value. Serving a section 13 notice (or agreeing a new rent with the tenant) before marketing the property improves the investment case for a buy-to-let purchaser.

A section 13 notice cannot be served within 52 weeks of the date on which a previous section 13 increase took effect, or within 52 weeks of a Tribunal determination of the rent. Landlords must check this 52-week restriction before serving a notice; a notice served too soon is invalid.

A valid UK Section 13 Rent Increase Notice must comply strictly with the prescribed form requirements in the Assured Tenancies and Agricultural Occupancies (Forms) Regulations 1997 and the notice period requirements in section 13(4) of the Housing Act 1988.

The prescribed form requirement is fundamental: a section 13 notice must be in the form prescribed by the Assured Tenancies and Agricultural Occupancies (Forms) Regulations 1997 (SI 1997/194) or in a form substantially to the same effect. A notice in the wrong form, or that omits a material element of the prescribed form, is invalid and the proposed rent increase will not take effect. The prescribed form includes a statement of the tenant's right to refer the increase to the First-tier Tribunal.

The identification of the parties clause must name the landlord and the tenant and identify the tenancy by reference to the property address and the tenancy commencement date. Where there are joint tenants, the notice should be addressed to all joint tenants named in the tenancy agreement.

The property address clause identifies the rented property by its full postal address. The notice must relate to the specific property that is the subject of the tenancy — a notice served in respect of the wrong property is a nullity.

The current rent clause states the existing contractual rent — the amount currently payable — so that the tenant and any Tribunal can compare the current rent with the proposed new rent. The current rent should match the amount stated in the most recent tenancy agreement or previous section 13 notice.

The proposed new rent clause states the proposed new annual rent, typically expressed as a monthly or weekly amount payable on the same day of each period as the current rent. The proposed rent must be stated as a single figure — a notice that proposes a range of rents or links the increase to a formula is invalid.

The proposed effective date clause states the date from which the new rent will take effect. Under section 13(4) of the Housing Act 1988, this date must be the first day of a new period of the tenancy. For a monthly tenancy where rent is due on the 1st of each month, the effective date must be the 1st of a month. The effective date must be at least one month after the date the notice is served (for a monthly tenancy) or at least six months after service (for a yearly tenancy).

The service date clause confirms the date the notice was served on the tenant. The Housing Act 1988 requires the notice to be served in writing. Service by first-class post is effective on the second business day after posting (by virtue of section 23 of the Housing Act 1988, which applies section 196 of the Law of Property Act 1925 to notices under the Act). Service by hand is effective on the day of delivery.

The tenant's right to refer clause (which forms part of the prescribed form under the 1997 Regulations) informs the tenant of their right to refer the proposed rent to the First-tier Tribunal (Property Chamber) before the proposed effective date. The notice must include the Tribunal's contact details and the timeframe within which the referral must be made. If the tenant refers the matter to the Tribunal, the existing rent continues to be payable until the Tribunal issues its determination.

The landlord's signature confirms that the notice is given by or on behalf of the landlord and provides contact details for the landlord or their managing agent. A notice signed only by a managing agent should confirm that the agent is authorised to act on the landlord's behalf. The forms-legal.com Section 13 Rent Increase Notice (UK) template covers the mandatory elements under Law of Property Act 1925.