When a tenant refuses a rent increase, landlords can find themselves in a difficult position, particularly in a market like London where rent prices and legislation frequently shift.
At London Estate Agency, we specialise in guiding landlords through legal, professional, and effective strategies to manage tenants while protecting their rental income.
Understanding the Legal Framework Around Rent Increases
Rent increases must follow strict guidelines, particularly for Assured Shorthold Tenancies (ASTs) in the UK.
If your tenant is still within the fixed term, you cannot increase the rent unless:
- There’s a rent review clause in the tenancy agreement.
- The tenant agrees to the increase voluntarily.
- You issue a new tenancy agreement at the end of the current term.
For periodic tenancies, you may issue a Section 13 notice to formally propose a rent increase.
This must follow the correct procedure and provide at least one month’s notice.
We offer full Section 13 preparation and service, ensuring your rent increase is legally enforceable and compliant with the latest regulations.
Explore our services to find out how we can handle this for you.
Common Reasons Tenants Refuse Rent Increases
Understanding why tenants reject a rent increase helps in formulating a practical response:
- They believe the increase is unfair or above the market rate.
- Financial constraints make it unaffordable.
- Poor property conditions or lack of repairs.
- They are unaware of current rental market trends.
At London Estate Agency, we provide Market Rent Reviews to justify your proposed increase using real-time comparables, keeping your rents competitive and lawful.
Steps to Take When Your Tenant Refuses a Rent Increase
1. Communicate Openly and Professionally
Open a clear dialogue. Often, tenants respond better when increases are explained. Include:
- A breakdown of market rates.
- Rising maintenance or mortgage costs.
- Improvements made to the property.
We offer tenant liaison services, so you don’t need to handle these conversations yourself. Let our experienced agents mediate and negotiate on your behalf.
2. Serve a Section 13 Notice (for Periodic Tenancies)
This formal notice must:
- Be issued on the correct government form.
- Provide one month’s notice (or longer for less frequent rents).
- Be fair and reflect market conditions.
Notices issued incorrectly can be challenged and dismissed. Our legal team will ensure this process is executed flawlessly and in full compliance.
3. Review the Market Rent
Is your increase justifiable? We’ll run a full local rental analysis and provide a written report to validate your proposed rent.
This document is crucial if the tenant refers the increase to the First-tier Tribunal.
When Should You Consider Eviction?
If your tenant refuses to pay the increased rent and refuses to vacate, you may consider:
- Waiting until the end of the fixed term.
- Issuing a Section 21 notice (no-fault eviction) – noting current temporary restrictions and notice periods.
- Enforcing the Section 13 increase if not contested.
London Estate Agency provides full eviction handling, from initial notice to court representation, keeping you on the right side of the law at all times.
Our Rent Protection and Tenant Management Services
We don’t just manage your rent increase—we protect it. Our in-house Rent Protection Services guarantee your rental income even if the tenant defaults. This includes:
- Rent is paid on time, even if your tenant doesn’t.
- Full legal expenses coverage in case of disputes or evictions.
- Tenant referencing and screening to avoid future issues.
Our Tenant Management Packages are tailored for busy landlords who want peace of mind while maximising their rental income.
Frequently Asked Questions by Landlords
Can I raise the rent mid-tenancy?
Only if the tenancy agreement includes a rent review clause, or with tenant agreement, otherwise, wait for renewal or use a Section 13 for periodic tenancies.
What happens if the tenant refuses to pay the increased rent?
You can either:
- Keep the existing rent and avoid conflict.
- Enforce the increase legally with a Section 13 notice.
- Begin eviction proceedings at the end of the tenancy.
We can advise on the best option for your circumstances.
How much can I legally increase the rent?
There’s no set limit, but increases must be fair and in line with market rates. Excessive increases can be challenged at the First-tier Tribunal.
We offer expert Rental Valuation Reports that stand up to legal scrutiny.
Can a tenant appeal the increase?
Yes, if issued via Section 13, they can appeal within one month. We help landlords prepare tribunal-ready documentation to win rent disputes.
How can I avoid rent disputes in future?
Hire a professional letting agent like us to:
- Set realistic rents from the start.
- Conduct regular reviews.
- Handle all communication and legal paperwork.
With our expertise, you’ll avoid costly delays, mistakes, or void periods.
Why Choose London Estate Agency
At London Estate Agency, we don’t just manage properties—we maximise landlord returns. Whether you’re dealing with a rent increase refusal, looking to secure reliable tenants, or need rent protection, our services are built around your financial goals.
What we offer:
- Rent reviews and legal rent increase management.
- Section 13 and eviction notices are handled in-house.
- Rent guarantee and tenant screening services.
- Access to cash buyer investors for quick property sales.
- Full legal compliance and property management.
Visit our landlord services page and take the hassle out of letting.
