Rising interest rates are putting pressure on homeowners - and for renters, this could filter down into how much rent you pay each month.
The Bank of England base rate now sits at 4.5% following twelve consecutive rises in a row since December 2021.
Base rate rises affect most mortgages unless they're fixed.
This means if your landlord’s mortgage has significantly increased over the last year, it is likely your rent will go up as a result to factor in the extra amount they're paying.
But how much can your rent go up by, and what can you do if you’re unhappy about the increase? We explain what you need to know.
An estimated 1.4 million homeowners are currently on a variable mortgage deal, including trackers which move in line with the base rate.
How much can your landlord put your rent up by?
This all depends on what type of tenancy you've agreed to.
If you have an assured shorthold or assured tenancy, Citizens Advice states your landlord can increase your rent based on the "market rate" of similar properties where you live.
This means the average cost of similar homes - so make sure you do your research and check what other people living near you are being charged.
If you have a rolling tenancy, so where you pay monthly or weekly, your landlord normally isn't allowed to put up your rent more than once a year.
For a fixed-term tenancy, your landlord can only increase your rent mid-contract if you agree to this, or if it is written into your tenancy agreement.
If you say no, they can put it up after your fixed term ends and you'll need to sign a new contract.
Your landlord must give you a minimum of one month’s notice if you pay rent weekly or monthly - or if you are locked into a yearly tenancy, they must give six months’ notice.
If you live with your landlord, they can technically put up your rent by any amount - and they can do this at any time if you don't have a fixed agreement in place.
Your landlord can’t increase your rent during your fixed term unless you agree or your agreement allows it.
How to challenge rent increases
Speak to your landlord as soon as possible and ask if you can come to some agreement about the rent increase.
For example, if your landlord wants to raise your rent from £900 per month to £1,000 per month, suggest meeting in the middle and paying £950.
If you think your rent increase is unfair and does not reflect prices in your area, you should flag this to your landlord.
Make sure you have examples of properties being rented nearby to back up your argument.
If you can't reach an agreement with your landlord over a rent increase, speak to Citizens Advice who can help you decide your next step.
If you aren’t able to stop your rent being increased, and you don’t pay the new amount, your landlord can try to evict you.
