Rent Increases after 31 March 2024

SAL has been involved in discussions with the government about their plans for rent increases after March and have provided Member Agents with the below update.

The government’s current proposal is that from 1 April 2024, landlords could issue a rent increase notice for any amount. The tenant could then, if they wished, refer it to the rent officer for adjudication. The rent officer would be able to restrict the rent increase through a tapering mechanism. The larger the difference between the current rent and the open market rent, the larger the increase which would be permitted by the rent officer subject to a maximum figure yet to be announced (but likely to be in the region of 10-15%).

These proposals are still under consideration and SAL will notify members as soon as a firm announcement is made about rent increase procedures from 1 April. Rent increase notices issued before 1 April are still subject to a 3% cap, even if the increase doesn’t come into force until after that date.

Assured or short-assured tenancies which contain a rent increase clause in the contract terms are exempt from the current rent cap and are also expected to be exempt from the proposals set out above.

Chapmans will be in touch with our clients nearer the time as we will be planning for this to ensure notices are issued around 1 April 2024.