Cost of living latest: Interest rates hit 15-year high as burden on mortgage holders increases | UK News

By Megan Baynes, cost of living specialist

Rising interest rates aren’t just affecting those with – or trying to get – a mortgage.

Landlords are, of course, likely to pass on higher mortgage rates to tenants – so what are your rights?

Your landlord can’t just increase your rent by whatever they like – they need to follow certain rules, so first you need to know what kind of tenancy you have.

Most renters are given an “assured shorthold tenancy” which means your rent can be increased regularly (usually every year), but not all landlords do this.

If you have a fixed-term agreement, your rent can’t be increased at random – your agreement will have to say when this can be done.

If you are told of a rent increase, the first step is always to speak to your landlord and see if you can negotiate a lower rate with them. 

Try and see if they’ll meet in the middle: if your rent is £900 and they wanted £950, try offering £925. Research similar properties in the area to see what the market rate is, and remember, it’s more work for a landlord if they have to replace you as a tenant.

If you haven’t been able to get your landlord to agree to a lower rent you can appeal to a tribunal for rent complaints. It’s free to do this. 

Whatever you do, don’t withhold your rent. If you go into arrears your landlord can try to evict you. While your landlord has to follow a process (so it’s not immediate) you could still end up without somewhere to live.

Contact your nearest Citizens Advice before deciding not to pay your rent increase. It’s important to get help early so you can avoid getting evicted.

Will the Renter’s (Reform) Bill make any difference?

The new legislation will see rent increases limited to one a year, and the minimum notice landlords must provide of any change in rent will be increased to two months. 

It will also abolish Section 21 “no fault” evictions.

But the legislation still allows landlords to evict renters six months into a tenancy if they wish to sell the property or move in a member of their family. 

There is also nothing to stop a landlord from pushing rents up so high it forces a tenant out. 

Citizens Advice has warned 300,000 renters were forced out of their homes by rent increases last year.