How much can a landlord increase the rent?

What is fair rent to charge?

When you own one or more properties rented out to tenants, you'll want to ensure the rent you charge is fair for both parties.

The average rent in the UK is £1,175 but can vary depending on location. Most often, landlords base the rental charge on similar properties within the local area.

But with living costs continuing to increase, as a landlord, you might wonder how to increase your rent fairly and within the law without pricing out your tenant.

Can a property owner increase the rent?

As a landlord, you are allowed to raise the rent, but you must adhere to some rules. According to the government, the rental increase you request must be fair and realistic, meaning it shouldn't significantly exceed local averages.

You can also only increase the rent on your property at certain times, depending on the tenancy agreement.

How much can a landlord increase the rent?

As all increases need to be fair and realistic, the amount you raise your rent by should reflect the average price in the area. For example, if you own a property that you're currently renting out to a tenant for £1,000 per month, but nearby similar homes are rented out for £1,500 per month, you could realistically increase your charge.

But if you raise the rent to £2,000, this could be seen as unfair and unrealistic. In this circumstance, the tenant would be entitled to dispute the increase.

Whilst you can, in theory, charge whatever you like for rent, it's in the best interests of both parties to propose a reasonable increase.

How much can a landlord increase the rent?

As all increases need to be fair and realistic, the amount you raise your rent by should reflect the average price in the area. For example, if you own a property that you're currently renting out to a tenant for £1,000 per month, but nearby similar homes are rented out for £1,500 per month, you could realistically increase your charge.

But if you raise the rent to £2,000, this could be seen as unfair and unrealistic. In this circumstance, the tenant would be entitled to dispute the increase.

Whilst you can, in theory, charge whatever you like for rent, it's in the best interests of both parties to propose a reasonable increase.