SECTION 13 NOTICE EXPLAINED

section 13 notice Explained

section 13 notice Explained

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As a landlord advice, understanding the legal processes involved in renting out a property is crucial. One of the key aspects of managing a tenancy is knowing when and how to issue a Section 13 notice. This notice is essential when you need to increase the rent for an assured shorthold tenancy (AST) in England.


In this comprehensive guide, we’ll explain everything landlords need to know about a Section 13 notice, including when to use it, how to serve it correctly, and what tenants can do if they disagree with the proposed rent increase.



What Is a Section 13 Notice?


Section 13 notice is a formal document used by landlords in England to legally increase the rent for tenants under an assured shorthold tenancy (AST). It derives its name from Section 13 of the Housing Act 1988, which outlines the rules for rent increases when a tenancy is periodic (rolling month-to-month) rather than fixed-term.


Landlords cannot simply raise the rent without following the correct legal process. A Section 13 notice ensures that any rent increase is fair, justified, and compliant with UK rental laws.



When Should a Landlord Use a Section 13 Notice?


Landlords should use a Section 13 notice in the following circumstances:





  1. Periodic Tenancy (Rolling Tenancy) – If the fixed term of the tenancy has ended and the tenant is now on a month-to-month or week-to-week basis.




  2. No Rent Review Clause in the Tenancy Agreement – If the original tenancy agreement does not include a clause allowing rent increases.




  3. Tenant Refuses a Voluntary Rent Increase – If the landlord proposes a rent increase informally, but the tenant does not agree.




Landlords cannot use a Section 13 notice during a fixed-term tenancy unless the tenancy agreement includes a rent review clause.



How to Serve a Section 13 Notice Correctly


To ensure the rent increase is legally binding, landlords must follow strict procedures when serving a Section 13 notice:



1. Use the Correct Form (Form 4)


The notice must be issued using the official Form 4: Landlord’s notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy from the UK government website.



2. Provide Adequate Notice


Landlords must give at least one month’s notice (for weekly or monthly tenancies) or six months’ notice (for yearly tenancies) before the new rent takes effect.



3. Specify the New Rent Amount


The notice must clearly state the new rent amount and the date from which it will apply.



4. Serve the Notice in Writing


The notice can be delivered:





  • By hand (directly to the tenant)




  • By post (recorded delivery is recommended)




  • By email (if the tenancy agreement allows it)




5. Ensure the Rent Increase Is Fair


The proposed rent must be in line with market rates for similar properties in the area. If the tenant believes the increase is excessive, they can challenge it through a First-tier Tribunal (Property Chamber).



Can a Tenant Refuse a Section 13 Notice?


Tenants have the right to challenge a Section 13 notice if they believe the rent increase is unfair. Here’s what they can do:





  1. Negotiate with the Landlord – The tenant can discuss alternative terms before the increase takes effect.




  2. Refer the Case to a Tribunal – If the tenant believes the rent is significantly above market rates, they can apply to the First-tier Tribunal within one month of receiving the notice.




  3. Continue Paying the Old Rent – If the tenant does not respond, the new rent automatically applies after the notice period ends. However, if they refuse to pay, the landlord may start eviction proceedings under Section 21 or Section 8.




Alternatives to a Section 13 Notice


Landlords do not always need to use a Section 13 notice to increase rent. Other methods include:



1. Rent Increase Clause in the Tenancy Agreement


If the original tenancy agreement includes a rent review clause, landlords can increase the rent as per the agreed terms without needing a Section 13 notice.



2. Mutual Agreement with the Tenant


Landlords and tenants can agree on a rent increase informally and document it in writing.


However, if the tenant refuses, a Section 13 notice becomes necessary.



Common Mistakes Landlords Make with Section 13 Notices


To avoid disputes or invalid rent increases, landlords should avoid these common mistakes:





  • Incorrect Notice Period – Failing to give the required one-month or six-month notice.




  • Using the Wrong Form – Not using Form 4 or providing incomplete details.




  • Unreasonable Rent Increase – Proposing a rent significantly above local market rates.




  • Serving the Notice During a Fixed Term – A Section 13 notice only applies to periodic tenancies.




What Happens If a Landlord Doesn’t Follow the Correct Procedure?


If a landlord fails to serve a Section 13 notice correctly:





  • The rent increase may be legally unenforceable.




  • The tenant can challenge the increase in court.




  • The landlord may face difficulties if they try to evict the tenant for non-payment.




Landlord Advice: Best Practices for Rent Increases


To ensure a smooth rent increase process, landlords should follow these best practices:





  1. Research Local Market Rates – Ensure the proposed rent is fair and comparable to similar properties.




  2. Communicate Early – Discuss the increase with the tenant before serving the notice.




  3. Keep Records – Document all communications and proof of serving the notice.




  4. Seek Legal Advice if Unsure – If in doubt, consult a solicitor or property management expert.




Conclusion


Section 13 notice is a vital tool for landlords who need to increase rent legally and fairly. By following the correct procedures—using Form 4, providing sufficient notice, and ensuring the rent is reasonable—landlords can avoid disputes and maintain positive tenant relationships.


For landlord advice on rent increases, always stay informed about legal requirements and consider professional guidance when necessary. Properly managing rent adjustments helps ensure a stable and profitable rental business while keeping tenants satisfied.


If you’re a landlord planning a rent increase, make sure you understand Section 13 notice rules to protect your rights and comply with UK housing laws.

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