Rent increases

For more information, please contact:

Samantha Grix Partner 020 7880 4307 Email Samantha

Part 1 of Chapter 1 of the Bill provides for significant amendment to section 13 of the Housing Act 1988 and provides for a new section 13A to be inserted. The table below sets out the differences for the Private Rented Sector (PRS) and registered providers of social housing.

Section 13	Section 13A
Applies to assured tenancies in the PRS	Applies to social housing assured tenancies low-cost rental in accordance with section 69 of the Housing and Regeneration Act 2008 let by a private registered provider.
Section 13 notice for all rent increases. Note - No scope to use a contractual clause mechanism to increase rent.	Section 13A rent increase or contractual clause permitted (section 13A(6)).
Two months’ notice	One months’ notice
New prescribed form (not yet published)	New prescribed form (not yet published)
Every 52 weeks	Every 52 weeks

These provisions will have most impact on private landlords as they will not be permitted to use contractual increase mechanisms once the legislation has passed.

However, registered providers who have PRS stock will have to take note because there is no exemption to this for such stock.

Section 13A only applies to social housing units as it stands. The Bill does provide for the Secretary of State to add to the list by Statutory Instrument so it remains to be seen if PRS stock of registered providers will be moved over to the section 13A regime.

Section 14 of the Housing Act 1988 will see amendment to reflect the above differences for the PRS and social housing sector. A new section 14(A1) will allow PRS tenants to challenge a starting rent for their tenancy providing the challenge is made within six months of the tenancy commencing. This reflects the current section 22 of the Housing Act 1988 which applies to assured shorthold tenancies but is not widely used. This is an interesting provision and if taken up more often, it may have an impact on starting rent levels and give tenants more negotiating power before entering into a tenancy.

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