When it comes to renting out property, landlords must navigate a complex web of legal obligations. One of the most critical yet often misunderstood regulations is Section 13 of the Housing Act 1988. This provision governs rent increases for assured shorthold tenancies (ASTs) in England and Wales. Ignoring its rules can lead to disputes, financial losses, or even legal action.
In this comprehensive guide, we’ll explore everything landlords need to know about Section 13, including when to use it, how to apply it correctly, and common pitfalls to avoid.
What Is Section 13?
Section 13 is a legal mechanism that allows landlords to increase rent for tenants under an AST without needing to negotiate a new agreement. Unlike informal rent hikes or mutual agreements, this procedure ensures the increase is fair, transparent, and enforceable.
Key Features of a Section 13 Notice:
Only applicable to periodic tenancies (rolling month-to-month agreements after a fixed term ends).
Cannot be used during a fixed-term tenancy unless the contract includes a rent review clause.
Requires landlords to give tenants at least one month’s notice (for weekly or monthly tenancies) or six months’ notice (for yearly tenancies).
The new rent must be in line with market rates—excessive increases can be challenged by tenants.
When Should Landlords Use Section 13?
Landlords may consider issuing a Section 13 notice in the following scenarios:
Market Rent Has Increased
If local rental prices have risen significantly, landlords may adjust the rent to stay competitive.
Tenancy Has Become Periodic
Once a fixed-term ends and the tenancy becomes rolling, landlords can use Section 13 to revise the rent.
No Rent Review Clause in the Contract
If the original tenancy agreement lacks provisions for rent increases, Section 13 provides a legal alternative.
How to Issue a Section 13 Notice
To enforce a rent increase correctly, landlords must follow these steps:
1. Use the Correct Form (Form 4)
The Section 13 notice must be submitted using the official Form 4 from the UK government website.
2. Specify the New Rent and Start Date
Clearly state the revised amount and the date it takes effect (after the notice period).
3. Serve the Notice Properly
Deliver the notice via email (if agreed in the tenancy) or as a printed letter. Keep proof of delivery.
4. Allow the Tenant to Challenge It
Tenants can dispute the increase by referring it to a First-tier Tribunal (Property Chamber) within one month.
Common Mistakes Landlords Make with Section 13
Despite its straightforward rules, many landlords make errors when issuing a Section 13 notice, leading to disputes or invalid rent hikes.
❌ Increasing Rent Too Frequently
Landlords cannot raise rent more than once a year without tenant agreement.
❌ Ignoring Market Rates
If the new rent is significantly higher than comparable properties, tenants can appeal.
❌ Failing to Provide Proper Notice
Short notice periods or incorrect forms can render the increase unenforceable.
❌ Applying It During a Fixed Term
Unless the contract allows rent reviews, landlords must wait until the tenancy becomes periodic.
Alternatives to Section 13
While Section 13 is a reliable method, landlords have other options:
1. Mutual Agreement
The simplest way is to discuss the increase with the tenant and update the tenancy agreement.
2. Rent Review Clause
Including a clause in the original contract allows automatic adjustments based on inflation or market changes.
3. Ending the Tenancy and Re-letting
In extreme cases, landlords can serve a Section 21 notice and re-let the property at a higher rate.
Tenant Rights: Can They Refuse a Section 13 Increase?
Tenants are not powerless against rent hikes. They can:
Negotiate with the landlord for a lower increase.
Challenge the increase at a tribunal if it’s unreasonable.
Give Notice to Leave if they cannot afford the new rent.
However, if the Section 13 notice is valid and the rent is fair, tenants must comply or face potential eviction for non-payment.
Conclusion: Why Landlords Must Master Section 13
Understanding Section 13 is crucial for landlords who want to adjust rents legally and avoid disputes. By following the correct procedures—using Form 4, giving proper notice, and ensuring fair market rates—landlord advice can maintain positive tenant relationships while protecting their rental income.
For those unsure about the process, consulting a property solicitor or letting agent can prevent costly mistakes. Remember: a well-managed rent increase benefits both landlords and tenants in the long run.