Zoopla has recently predicted that UK rental growth will slow in 2024.
Zoopla’s Rent Rising Predictions
They expect rent increases to slow down next year, predicting rental rates to increase by 2% in London and by 5% elsewhere in the UK.
As illustrated by the above graph, the rate of rental growth is already slowing, and is predicted to slow further.
Part of the cause of this slow in rental growth is the fact that mortgages rates are starting to decrease, making buying property more attractive to some renters.
However, we must also bear in mind that rental growth is continuing, even if it is starting to slow down. A 5% increase to rent is still a significant rise for 2024, and demand for decent rental properties still outstrips supply.
What if I’m Unhappy with a Rent Increase?
If you believe that your rent has increased unfairly, you should check your tenancy agreement. Many tenants are on assured shorthold tenancy, which can be fixed term or periodic, rolling weekly or monthly.
Within this type of tenancy, your landlord cannot increase your rent during the term unless your contract includes a rent review clause. Your landlord must also supply you with a Section 13 notice to increase your rent unless you have a rent review clause.
If you do have a rent review clause, it should lay out when an increase can happen, how much notice you’re entitled to, and how this increase will be calculated.
If you think a proposed increase to your rent is unfair, you might want to try to negotiate with your landlord to reach a new compromise.
If you can’t come to an agreement with your landlord, you may be able to challenge the rent increase and get a tribunal to decide whether the increase is fair, e.g, it may be decided unfair if your landlord hasn’t carried out necessary repairs to the property.
If you choose to do this, you should collect evidence to support your claim that the rent increase isn’t fair. It can take up to 10 weeks for a tribunal to come to a conclusion. If they do decide the increase is fair, you will owe the increased rent from the time your landlord informed you it would rise on the Section 13 notice. Therefore, it’s a good idea to put some money aside as savings to ensure you can meet any backdated payments.