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Introduction

Acknowledgements

Acknowledgement is given to LG Regulation & ANUK for source material

Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland.

Introduction to Subject

Setting the rent is a fundamental requirement for every tenancy and from time to time a landlord will want to raise the rent to reflect his increasing costs.

Different rules apply for setting and increasing the rent depending on the type of tenancy. Assured and Assured Shorthold tenancies are governed by the

Housing Act 1988

as amended by the

Housing Act 1996:
Unfair Terms in Consumer Contracts Regulations

The rules governing regulated tenancies (those which started before January 1989) are complex and are governed by the Rent Act 1977. There is also a cap on the maximum increase that can be applied to regulated tenancies under the

Rent Acts (Maximum Fair Rent) Order 1999

A tenant will also face penalties for non-payment of rent. These vary depending on the type of tenancy but are governed by the same legislation.

Scotland

As in England and Wales, a landlord in Scotland has the right to set the initial rent at the start of an assured or short assured tenancy in agreement with the tenant. He can choose the method and frequency of payment and, as in England, it is a criminal offence not to provide a rent book if the rent is paid weekly.

If the tenancy agreement sets out the frequency and formula for rent increases then the landlord can raise the rent at the times and by the formula specified in the tenancy agreement. The tenant will be taken to have agreed to the terms by signing the tenancy.

If there is no provision in the tenancy agreement for rent increases then it is still possible to increase the rent during the tenancy by agreement with the tenant. It is best to write to the tenant in duplicate notifying them of the increase in rent and asking them to sign and return one copy of the letter as a record of their agreement.

If the tenant does not agree to the rent increase and a notice to quit has previously been served (making the tenancy a statutory assured tenancy) the landlord can serve form AT2 on the tenant notifying them formally of the increase in rent. During the notice period the tenant can apply to the Rent Assessment Committee for a market rent to be determined. If the tenancy is for 6 months or more the minimum notice period for form AT2 is 6 months. If the tenancy is for less than 6 months the notice period is the length of the tenancy or one month, whichever is longer.

If the tenant does not apply to the Rent Assessment Committee during the notice period the rent increase will come into effect on the date specified in the AT2 notice. The landlord can only raise the rent using form AT2 once a year.

As in England, the landlord has the right to get possession of his property if the tenant is failing to pay the rent. The situation is governed by the Housing (Scotland) Act 1988.

n order to gain possession the landlord must serve a notice to quit on the tenant (unless this has previously been done), as well as Form AT6 giving notice to the tenant of possession proceedings and the grounds for proceedings. For rent arrears the landlord must give the tenant at least 2 weeks notice of possession.

The landlord must also obtain a court order in order to regain possession of the property. He can use any of the following grounds to obtain a court order:

Ground 8 of the Housing (Scotland) Act 1988 is that at least 3 months arrears is owed both at date of notice of proceedings and date of court hearing. Ground 8 is a mandatory ground: if the landlord can prove his case the court has to grant possession.

Ground 11 is that there has been a persistent delay in paying rent.
Ground 12 is that there are some rent arrears but not necessarily 3 months worth.

Grounds 11 and 12 are discretionary grounds so even if the landlord can prove his case the court may decide not to grant possession. It may opt for a suspended order whereby the tenant may stay in the property provided that they repay the arrears at an agreed amount.

A landlord of a regulated tenant in Scotland is governed by the same rules as apply in England with regards to matters of rent.

Northern Ireland

Different rules apply to rent increases in Northern Ireland. If the tenancy is a protected tenancy there will be restrictions on the landlord’s ability to set the rent, especially if the property is in a poor condition.

Wales

There are minor differences in Wales which can be found by clicking on the flags in the relevant sections.

Legislation

Resource 1 of 21 in Rent

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