Rent Increase Notice Guide: Understand Your Rights & Options (Form 5 Explained)

For Landlords: How to Complete the Notice

Filling Out the Notice:

You can fill out this notice using ink or have it printed.

When to Use This Notice:

Use this form for proposing a new rent or license fee for an assured agricultural occupancy located in England. For assured periodic tenancies, use Form No 4.

When Not to Use This Notice:

Avoid using this form if the tenancy agreement already includes a term for rent increases or if another agreement exists for this purpose. Ensure any provision you rely on is legally binding. Seek legal advice if unsure.

Different Notices for Other Situations:

Use a different form if proposing a rent increase for a statutory periodic tenancy due to a change of terms under section 6(2) of the Housing Act 1988. Legal advice is recommended if this applies to you.

Filling Out Charges:

In the table in paragraph 4, enter "nil" or the respective amount for the existing or proposed charge. Only include amounts for council tax and water charges if the tenant doesn't pay these directly. Include fixed service charges only if agreed upon in the rent terms. Avoid including any variable service charges.

Signing the Notice:

The notice must be signed and dated by you or your agent. If there are multiple landlords, all must sign unless one is authorized to sign on behalf of the others.

When Can the Proposed New Rent Start?

Compliance with Section 13(2): The proposed date must meet three requirements outlined in section 13(2) of the Housing Act 1988.

Minimum Notice Period:

A specific minimum period is required before the new rent takes effect, varying based on the tenancy's frequency.

Anniversary Requirement:

Generally, the new rent can't start before the first anniversary of the last rent increase or the start of the tenancy, with some exceptions.

Exceptions to the Anniversary Requirement:

Certain situations allow for an immediate proposal of new rent, such as when a tenancy continues on a periodic basis after a fixed term ends or when a tenancy begins upon the death of the previous tenant under a regulated tenancy.

Start of a Tenancy Period:

The new rent must begin at the start of a tenancy period, such as the monthly or weekly anniversary of the tenancy's commencement.

 

 

Immediate Actions for Tenants:

Understanding the Notice:

You've received a notice proposing a new rent amount starting from the date mentioned in paragraph 3. If you're uncertain or need advice on any part of this notice, promptly discuss it with your landlord or seek guidance from a Citizen's Advice Bureau, Housing Advice Center, Law Center, or a Solicitor.

Agreeing to the New Rent:

If you're accepting the new rent, it's vital to arrange your payments accordingly. For those paying by standing order, inform your bank about the change in the amount. If you're receiving Housing Benefit or Universal Credit, notify the respective office. Should you have concerns about affording the new rent, immediately seek advice from a Citizen's Advice Bureau or Housing Advice Center. Additional guidance is available on the Gov.uk website.

Disagreeing with the New Rent:

If you don't agree with the new rent and prefer not to discuss it with your landlord, you have the right to refer this notice to a tribunal before the start date mentioned in paragraph 3. It's crucial to inform your landlord about this action.

Referring to the Tribunal:

To take this matter to the tribunal, use the form titled 'Application referring a notice proposing a new rent under the Assured Periodic Tenancy or Agricultural Occupancy to a Tribunal (form 6)', available from the tribunal or a legal stationer.

Tribunal's Decision:

The tribunal will review your application and decide the maximum reasonable rent for your home, considering what rent could be expected if it were let on the open market under similar terms. The tribunal's rent could be higher, lower, or the same as the proposed new rent.

Definition of 'Tribunal':

In this context, 'tribunal' refers to either the First-tier Tribunal or the Upper Tribunal.

Official Guidance notes for Form 5

What you must do now

1       This notice proposes that you should pay a new rent from the date in paragraph 3 of the notice. If you are in any doubt or need advice about any aspect of this notice, you should immediately either discuss it with your landlord or take it to a citizens' advice bureau, a housing advice centre, a law centre or a solicitor.

2       If you accept the proposed new rent, please make arrangements to pay it. If you pay by standing order through your bank, you should inform them that the amount has changed. You should also notify your Housing Benefit office in your local authority if you are claiming a Benefit or the Department for Work and Pensions if you are claiming Universal Credit. The Gov.uk website provides further advice: http:\\www.gov.uk. If you are worried that you might not be able to pay your rent, you should seek advice from a citizens' advice bureau or housing advice centre.

3       If you do not accept the proposed new rent, and do not wish to discuss it with your landlord, you can refer this notice to the tribunal. You must do this before the starting date of the proposed new rent in paragraph 3 of the notice. You should notify your landlord that you are doing so, otherwise he or she may assume that you have agreed to pay the proposed new rent.

4       To refer the notice to the tribunal, you must use the form Application referring a notice proposing a new rent under the Assured Periodic Tenancy or Agricultural Occupancy to a Tribunal (form 6). You can obtain this from the tribunal or a legal stationer.

5       The tribunal will consider your application and decide what the maximum rent for your home should be. In setting a rent, the tribunal must decide what rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms. The tribunal may therefore set a rent that is higher, lower or the same as the proposed new rent.

6       In these Guidance notes for agricultural occupants, the "tribunal" means the First-tier Tribunal or the Upper Tribunal.

 

Guidance notes for landlords on how to complete the notice

7       You can complete this notice in ink or arrange for it to be printed.

8       This notice should be used when proposing a new rent or licence fee for an assured agricultural occupancy of premises situated in England. There is a different notice (Form No 4--Landlord's Notice proposing a new rent under an Assured Periodic Tenancy of premises situated in England) for proposing a new rent for an assured periodic tenancy (including an assured shorthold periodic tenancy) of premises situated in England.

9       Do not use this notice if the tenancy agreement contains a term allowing rent increases, or there is some other basis such as a separate agreement with the tenant for raising the rent. Any provision you rely on needs to be binding on the tenant. Legal advice should be sought if there is any doubt on this score.

10    You need to use a different notice to propose a rent increase for a statutory periodic tenancy (the first exception mentioned in note 16) if you are seeking to adjust rent solely because of a proposed change of terms under section 6(2) of the Housing Act 1988. Seek legal advice if you think this may apply to you. You can obtain the form headed Notice proposing different terms for a Statutory Periodic Tenancy from the First-tier Tribunal or a legal stationer.

11    You should enter in each of the boxes in the second and third columns of the table in paragraph 4 either "nil" or the amount of the existing or proposed charge. You should only enter amounts for council tax and water charges where the tenant does not pay these charges directly. You should only enter fixed service charges which are payable by the tenant in accordance with a term or condition which specifies that these charges will be included in the rent for the tenancy. Only enter an amount for service charges where the tenant has agreed to pay a fixed sum. Do not include in the table any variable service charge, ie a service charge within the meaning of section 18 of the Landlord and Tenant Act 1985, where the whole or part of the sum payable by the tenant varies or may vary according to costs.

12    You or your agent (someone acting on your behalf) must sign and date this notice. If there are joint landlords, each landlord must sign unless one signs on behalf of the rest with their agreement. The signature does not have to be hand-written if, for instance, the form is being printed or if you wish to use a laser or autosignature.

 

When the proposed new rent can start

13    The date in paragraph 3 of the notice must comply with the three requirements of section 13(2) of the Housing Act 1988, ignoring the amendments made by the Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003.

14    The first requirement, which applies in all cases, is that a minimum period of notice must be given before the proposed new rent can take effect. That period is:

-       one month for a tenancy which is monthly or for a lesser period, for instance weekly or fortnightly;

-       six months for a yearly tenancy;

-       in all other cases, a period equal to the length of the period of the tenancy - for example, three months in the case of a quarterly tenancy.

15    The second requirement applies in most cases (but see note 16 for two exceptions). The starting date for the proposed new rent must not be earlier than the first anniversary of the date on which the rent was last increased using this statutory notice procedure or, if the tenancy is new, the date on which it started.

16    The two exceptions, which apply where a statutory tenancy has followed on from an earlier tenancy, are:

-      where the tenancy was originally for a fixed term (for instance, 6 months), but continues on a periodic (for instance, monthly) basis after the term ends; and

-      where the tenancy came into existence on the death of the previous tenant who had a regulated tenancy under the Rent Act 1977.

In these cases the landlord may propose a new rent at once. However, the first and third requirements referred to in notes 14 and 17 must still be observed.

17    The third requirement, which applies in all cases, is that the proposed new rent must start at the beginning of a period of the tenancy. For instance, if the tenancy is monthly, and started on the 20th of the month, rent will be payable on that day of the month, and a new rent must begin then, not on any other day of the month. If the tenancy is weekly, and started, for instance, on a Monday, the new rent must begin on a Monday.

This is available on ther government website and a copy is provided below under Crown Copyright.  

FORM 5

Landlord's or Licensor's Notice proposing a new rent or licence fee under an Assured Agricultural Occupancy of premises situated in England

Housing Act 1988 section 13(2), as amended by the Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003

The notes over the page give guidance to both landlords and tenants about this notice.

This notice may also be used by licensors to give notice proposing a new licence fee. In that case, references in this form and in the notes over the page to landlords, tenants, tenancy and rent should be read as references to licensors, licensees, licence and licence fees, respectively.

 

	To:	..............................................................................................	[Tenant(s)]
	of:	.............................................................................................. .............................................................................................. ..............................................................................................	[Address of the premises subject to the tenancy]
	From:	.............................................................................................. .............................................................................................. .............................................................................................. .............................................................................................. ..............................................................................................	[Landlord(s)][Landlord's Agent]* *delete as appropriate [Address for correspondence]   [Contact telephone number]

 

1     This notice affects the amount of rent you pay. Please read it carefully.

 

2     The landlord is proposing a new rent of £......................... per[week][month][year]*, in place of the existing one of £         per [week][month][year]*

*delete as appropriate

 

3     The starting date for the new rent will be .......................................................................................................

(see notes 13 to 17 over the page)

 

4     Certain charges may be included and separately identified in your rent. (See note 11 over the page.) The amounts of the charges (if any) are:

	Charges	Amount included and separately identified
		(enter "nil" if appropriate)
		In the existing rent	In the proposed new rent
	Council tax	£	£
	Water charges	£	£
	Fixed service charges	£	£

5     If you accept the proposed new rent, you should make arrangements to pay it. If you do not accept it, there are steps you should take before the starting date in paragraph 3 above. Please see the notes over the page for what to do next.

Signed: .................................................................  [Landlord(s)][Landlord's Agent]* (see note 12 over the page)

..........................................................................................................................................................................     

..........................................................................................................................................................................     

*delete as appropriate

Date: .................................................................................................................................................................