A recent poll carried out by a flat and house share website states that 40% of landlords in the private rented sector are making plans to increase their rents in 2015.

Nearly 30% of landlords in the poll are looking to increase their rents by 3% and from those tenants who also took part, 56% are saying that they will be unable to afford higher rents and would be forced to move, even if they had to pay an extra £40 per month.

The survey also states that 97% of renters in shared accommodation had no confidence in the government's attempts at making  housing more affordable.

From the survey, 27% of Landlords are planning to raise rents by 3% with 13% whose increases will be lower than 3%.

55% of the landlords say they have no intentions of raising the rent, and surprisingly 2% will lower the rent by 3%.  

 

3% of landlords have submitted the answer that they will be lowering their rents by more than 3%.

The company predicts that because of increased rents over the last year and the likelihood that 

landlords will have increased mortgage repayments upon interest rates rising, then the average room's rent may jump higher than 3% in 2015.

Across the UK over the past twelve months, the cost for a double room has risen by 8%, it now stands at £546 per month which is an increase of £35 per month.

Matt Hutchinson, director of the online company, said: “While the majority of landlords do all they can to hold onto good, reliable tenants, those facing increased mortgage repayments when interest rates rise may have no choice than to cover the extra cost by passing it onto their tenants.

 

“That could have serious implications for a rental market already reaching crisis point, and there’s no contingency plan."

see How to Increase the rent

 

If the rent increase is not lawful you could be ordered to repay the money.

• This is why Section 13 of the Housing Act 1988 legislation exists. It means landlords must inform a tenant of their right to appeal against such an increase [this text by law MUST be included in the notice].  Another major implication of an invalid rent increase is that at a later date it could  have an adverse affect on a claim for possession.  The landlord could have relied on a claim for rent arrears which had been inflated as the monies were never lawfully due. This would mean the Section 8 Notice was invalid. Print Form