Section 13 is a way for landlords to increase the rent they charge for a property; it refers to Section 13 of the Housing Act (1988).
You can only use Section 13 for assured periodic tenancies, which are tenancies that are not within a fixed term.
For example, the fixed term may have expired, meaning the tenancy has automatically become a periodic tenancy.
- When can a landlord serve a Section 13 notice?
- How to fill out a Form 4 and common mistakes to avoid
- How to serve a Section 13 notice
- Can tenants challenge a Section 13 rent increase?
- What does the Renters’ Rights Bill mean for rent increases via Section 13?
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Section 13 is a common way to increase the rent when you can’t agree with your tenant in writing. This is a formal process and it requires landlords to fill out a prescribed form (called Form 4) and serve it on the tenant.
In this blog post, you’ll find how to use Section 13, including when it can be used and how to fill in and serve a Form 4.
When can a landlord serve a Section 13 notice?
Landlords can only serve a Section 13 notice in a periodic tenancy and do so only once every 12 months.
The minimum notice period for tenancies with a period equal to or shorter than monthly (e.g., fortnightly or weekly) is one month. For tenancies where the rent is paid yearly, the minimum notice period is six months. In all other cases, the minimum notice is equal to the rental period.
Once the form has been completed correctly and in full, it must be served on the tenant. The Section 13 notice cannot be served during the fixed-term tenancy period; it must be served once the agreement transitions into a periodic tenancy.
You should begin receiving the new rent at the start of the next rental period. For example, in a monthly tenancy starting on the 10th of each month, the new rent becomes due from the 10th of that month.
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If there is no written agreement in place for the tenancy, and therefore no fixed term, then Section 13 cannot be used within 52 weeks of the beginning of the tenancy. In other words, it can’t be used during the first year of a tenancy that doesn’t have a written tenancy agreement.
If you happen to have a contractual periodic tenancy that includes a rent review clause, then the terms of that clause must be adhered to and Section 13 will not be able to be used.
Landlords can serve a Section 21 eviction notice and a Section 13 rent increase notice at the same time, if needed.
Filling out a Form 4 and common mistakes to avoid
To use Section 13, you must fill out a Form 4 and serve it to the tenant. You can easily download a Form 4 from the government’s official website.
The form provides clear instructions for completing each field and includes helpful guidance notes at the bottom to help landlords fill it in accurately.
However, here are a few common mistakes landlords make that you should watch out for:
- Make sure you meet all the criteria specified in the above section. If you serve this notice without meeting the criteria (e.g., having served one in the past 52 weeks) then the notice will not be valid
- Make sure the new rent is payable from the beginning of the rental period
- Use the correct notice period depending on whether your rental period is monthly, weekly or yearly
- The landlord or the agent acting on behalf of the landlord must sign and date the notice. If there are joint landlords, then both must sign the notice unless there is an agreement where one of the landlords can sign for both
- Be absolutely sure to spell the names of all tenants correctly
- Make sure you get the property address correct
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How should you serve a Section 13 notice?
Once you have filled out a Form 4, you will need to serve it on the tenant.
You can serve the notice by first-class post, hand delivery, or through a process server, unless the tenancy agreement specifies a different method.
Whatever delivery method you choose, be sure to keep proof of service, such as a receipt from the post office, to avoid any disputes about when the notice was served.
What happens after?
If the tenant agrees to the proposed rent increase, they just need to start paying the new amount from the next rent due date.
If they don’t respond, the increase is usually considered accepted by default, and the new rent will apply from the start of the next rental period.
However, if the tenant believes the increase is unfair, they have the right to challenge it.
Can tenants challenge a Section 13 rent increase?
Yes, tenants can challenge a rent increase by referring it to the First-tier Tribunal (also called the Property Chamber). This is a legal body that helps settle disagreements about property issues, like whether a rent increase is fair.
To challenge the increase, the tenant must submit their application before the date the new rent is due to begin.
The tribunal will look at what similar properties in the area are being let for and decide what a fair rent would be. They can agree with the landlord’s proposed rent, set a different amount, or even lower the rent.
Keep in mind that if the tenant doesn’t apply in time – or pays the new rent even once – it’s usually seen as accepting the increase.
After that, you can’t raise the rent again unless your tenant agrees or you issue another Section 13 notice. Remember, you can only use Section 13 once every 12 months.
If your tenancy has moved on from a fixed term to a rolling (periodic) one, and there’s no rent review clause in the agreement, you can serve a Section 13 notice the day after the fixed term ends. The new rent would then take effect from the next rent due date.
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What does the Renters’ Rights Bill mean for rent increases via Section 13?
Once the Renters’ Rights Bill becomes law, Section 13 notices will be the only way for landlords to increase the rent.
One of the key changes in the bill is that all tenancies will automatically become periodic assured tenancies. This means fixed-term agreements – and any rent review clauses tied to them – will no longer apply.
The bill also proposes increasing the required notice period for rent increases. Instead of giving one month’s notice, you’ll need to give two months’ notice, and rent can only be increased once every 12 months.
Here’s an example:
If your tenant pays rent on the 10th of each month, the rental period runs from the 10th to the 9th. To raise the rent starting on 10th May, you’d need to serve the Section 13 notice no later than 9th March. The new rent would then begin on 10th May.
Tenants will still have the right to appeal the increase by applying to the First-tier Tribunal, up until the day before the new rent takes effect. If the tribunal agrees with the tenant, they can either lower the proposed rent or delay the increase by up to two months if they believe it would cause them “undue hardship”.
Importantly, the tribunal won’t have the power to raise the rent above the amount you proposed in your Section 13 notice – even if they find that market rent is higher.
Hi.
What happens if the tenants disagree in writing with the proposed rent increase after being served a Section 13 but fail to refer it to the first tier review system?
Thank you.