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Page 1: Tenants' rights - rents - Age UK · Tenants' rights -rents ... (covering landlords, letting agents and management agents), an increased focus on preventing homelessness and measures

Factsheet 35 May 2014 1 of 15

Tenants’ rights - rent

Factsheet 35 May 2014

Tenants' rights - rents

About this factsheet

This factsheet provides information about what your landlord can charge you

as rent, depending on the type of tenancy you have.

For information about other aspects of tenants’ rights see the Age UK range

of dedicated factsheets.

We also publish a range of factsheets on finding accommodation in both the

private rented sector and from social landlords, as well as specialist housing

such as retirement housing and park homes.

The information given in this factsheet is applicable in England and Wales.

Different rules may apply in Northern Ireland and Scotland. Readers in these

nations should contact their respective Age UK organisation for information

specific to where they live – see section 8 for details.

For details of how to order other Age UK factsheets and information materials

go to section 8.

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Factsheet 35 May 2014 2 of 15

Tenants’ rights - rent

Inside this factsheet

1 Recent developments 3

2 Introduction 4

3 Private tenants 5

3.1 Regulated (protected) tenants 5

3.2 Assured tenants 6

3.3 Assured shorthold tenants 7

4 Housing association tenants 7

4.1 Tenancies that began before 15 January 1989 7

4.2 Tenancies that began after 15 January 1989 8

5 Council tenants 8

6 Affordable rents – England 8

7 Useful organisations 9

8 Further information from Age UK 13

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Factsheet 35 May 2014 3 of 15

Tenants’ rights - rent

1 Recent developments

From 1 April 2013, there were changes to how social housing tenants in

England could complain to an Ombudsman. Since this date complaints about

registered providers of social housing (including local authorities) in regard to

their functions as landlords should be directed to the Housing Ombudsman

Service (HOS). However, complaints about local authority wider activities

such as discharging their statutory duties in homelessness or housing

allocation under Part 6 of the Housing Act 1996 will still be dealt with by the

Local Government Ombudsman (LGO). For more information contact the

relevant Ombudsman (see section 7). The HOS and LGO are England bodies

only. In Wales, the relevant Ombudsman service for all these issues will be

the Public Services Ombudsman for Wales (see section 7).

The Localism Act includes reform of social housing in England (in part 7),

such as the introduction of new ‘affordable rent’ for tenants of registered

providers of social housing (local authorities and private providers of social

housing such as housing associations) set at up to 80% of market rents (see

section 6 for further information). This element of the Localism Act does not

apply in Wales. The Welsh Government is responsible for setting ‘guideline’

rents for local authorities and ‘benchmark’ rents for housing associations.

Contact the Welsh Government for further information – see section 7.

There are currently two major housing Bills in Wales – the Housing (Wales)

Bill and the Renting Homes Bill (Wales). If passed, this legislation will result in

significant changes in Wales and, in many respects, would lead to a

separation for the first time in housing and tenancy law between Wales and

England.

The Housing (Wales) Bill was introduced by the Welsh Government Minister

for Housing and Regeneration in November 2013. The proposals include a

mandatory registration and licensing scheme in the private rented sector

(covering landlords, letting agents and management agents), an increased

focus on preventing homelessness and measures to reduce the number of

properties left empty on a long term basis, through encouraging owners to

rent or sell them (it is hoped that this will increase the supply of housing). It is

not envisaged that this Bill will become law prior to April 2015.

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Factsheet 35 May 2014 4 of 15

Tenants’ rights - rent

During 2013, the Welsh Government ran a consultation on the Renting

Homes Bill (Wales). The proposed legislation will seek to simplify tenancy law

in Wales. Everyone who rents their home – be it from a local authority,

housing association or private landlord – will be covered by the legislation. It

is proposed that all current housing tenancies would convert automatically to

one of two new types of rental contract on a set date. There will be a ‘secure

contract’ (based on the current local authority secure tenancy) and a

‘standard contract’ (similar to the current assured shorthold tenancy used

mainly in the private rented sector). However, the Bill is not expected to be

considered by the National Assembly for Wales before 2015. If passed, the

changes may take effect in late 2015 or early 2016.

2 Introduction

Depending on what sort of tenancy you have, you may have rights about

what your landlord can charge you by way of rent.

Note: The law relating to rights for tenants is complicated. This factsheet

aims to give basic information about your rights but you may have to get

more detailed advice from a specialist adviser (see section 7).

If you are not sure what tenancy you have, seek independent advice or use

the interactive ‘tenancy checker’ on the Shelter website (see section 7).

If you have difficulties with paying your rent, check if you are entitled to

Housing Benefit, which is available to some people on low income. You might

also be eligible for help with your Council Tax bill. For more information see

Age UK’s Factsheet 17, Housing Benefit and Age UK’s Factsheet 21, Council

Tax (or in Wales, see Age Cymru’s Factsheet 21w Council Tax in Wales:

information about the tax and help you might get towards your bill).

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Factsheet 35 May 2014 5 of 15

Tenants’ rights - rent

3 Private tenants

3.1 Regulated (protected) tenants

If your tenancy started before 15 January 1989, you probably have a

regulated (protected) tenancy.

As a regulated tenant you have a high level of security and the right to a ‘fair

rent’ fixed by a Rent Officer. In England Rent Officers are employed by the

Valuation Office Agency (VOA) and in Wales by the Housing Division of the

Welsh Government. To fix a fair rent you or your landlord must apply to the

Rent Officer on the form prescribed by regulation. There is no charge for this

service. The application must state the amount of proposed rent. Details of

your local Rent Officer service can be found by contacting the VOA or Welsh

Housing Division (see section 7).

To decide what is a fair rent for your home the Rent Officer will look at various

things, including other rents for similar properties in the area, the age and

condition of your property, the state of repair and the condition of any

furniture provided by the landlord. The Rent Officer is not supposed to take

into account whether there is a demand for your type of property in the area.

This means that even if there is a high demand and a shortage of suitable

accommodation you should not have to pay more rent. The Rent Officer will

disregard any improvements made by you or any damage or disrepair caused

by you.

If you disagree with a fair rent that has been registered you can appeal to the

rent assessment committee within 35 days of receiving the decision.

Note: In some cases the committee can set a rent which is higher than the

one that was set by the Rent Officer. Take advice before making an

application to the rent assessment committee (see section 7).

A fair rent is set for two years. After two years, or if there has been a

significant change in the property’s condition, you or your landlord can apply

for a new fair rent. The amount at which the rent can be increased is,

however, limited by legislation.

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Factsheet 35 May 2014 6 of 15

Tenants’ rights - rent

3.2 Assured tenants

If your tenancy started after 15 January 1989 but before 28 February 1997

then, provided you were given notice beforehand by your landlord, you

probably have an assured tenancy. These tenancies offer a high level of

security and your landlord cannot evict you without a valid reason.

If you are an assured tenant your landlord can charge you a market rent but

you have limited protection against unreasonable rent increases. If your

tenancy is for a fixed length of time, your landlord cannot increase your rent

during this fixed period unless your tenancy agreement allows for this or you

agree to the increase.

Once the fixed term has ended, if no new fixed-term agreement is signed,

your landlord can increase your rent. S/he must serve you a notice giving you

at least one month’s advance notice of the increase. This notice can be given

during the fixed period of the tenancy to come into effect after the end of the

fixed term. Your landlord must use the correct statutory form of notice for this

purpose.

Some assured tenancies are periodic. This means that there is no fixed

length for the tenancy and rent is due regularly, for example weekly or

monthly. During the first 12 months of a periodic tenancy your landlord cannot

increase your rent unless your tenancy agreement allows for this or you

agree to the increase.

If your landlord gives you notice that s/he is intending to increase the rent and

you think the increase is unreasonably high, you can try to negotiate a lower

increase. You also have the right to apply to a rent assessment committee.

You should be able to find their details in your local phone book or ask your

local council.

The rent assessment committee will decide upon a reasonable market rent

for your accommodation. In order to do this it will look at the rent charged for

similar properties in the area.

Note: In some cases the committee can set a rent which is higher than that

proposed by your landlord, so take advice before making an application to the

rent assessment committee (see section 7).

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Factsheet 35 May 2014 7 of 15

Tenants’ rights - rent

Once a market rent has been set by a rent assessment committee the

landlord cannot increase it for one year.

3.3 Assured shorthold tenants

If your tenancy started on or after 28 February 1997 you will have an assured

shorthold tenancy unless your tenancy agreement says otherwise.

Assured shorthold tenants also have the right to refer their rent to the rent

assessment committee if they believe it to be unreasonably high. You can

only apply within six months from the start of the original tenancy and you

must use the correct form for this application. The rent assessment

committee will only make a decision if your rent is significantly higher than the

market rent but if it does make such a decision then that will be the maximum

rent which your landlord can charge you.

Note: Since assured shorthold tenants have no security of tenure after the

first six months (or fixed term) of their tenancy comes to an end, it is

advisable to consider carefully whether it is worth referring the rent to the rent

assessment committee and risking losing the tenancy.

4 Housing association tenants

4.1 Tenancies that began before 15 January 1989

If your tenancy began before that day, or you had another tenancy before that

date, you have the right to have fair rents fixed in the same way as regulated

(protected) private tenants (see section 3.1). You can check whether or not

your fair rent has been registered.

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Factsheet 35 May 2014 8 of 15

Tenants’ rights - rent

4.2 Tenancies that began after 15 January 1989

Tenancies that began on or after that day are assured tenancies (see section

3.2 on how rents are increased). Housing association rents are usually lower

than those of private landlords because they are regulated. In England, the

Homes and Communities Agency (which took over the regulatory function

from Tenants Services Authority on the 1st April 2012) is the regulator of social

housing providers (see section 7). In Wales, the equivalent regulatory role is

undertaken by Welsh Ministers under Part 1 of the Housing Act 1996. In

terms of the day to day running of the system, a Housing Regulation Team

within the Welsh Government undertakes the work on behalf of the Ministers.

Their role is guided by the Welsh Government document, ‘Regulatory

Framework for Housing Associations Registered in Wales’ (December 2011)

– see ‘Welsh Government’ entry in section 7 for contact details.

5 Council tenants

Local councils have the right to fix their own rents in law. Rent increases must

be reasonable but can only be challenged in the court by judicial review. This

is a complicated and lengthy process and you should always take legal

advice before taking this course of action. It is also unlikely that such a

challenge would be successful.

6 Affordable rents – England

Registered providers of social housing in England (local authorities and

housing associations) are able to charge affordable rents for certain

properties to households eligible for social housing. Affordable rents cannot

exceed 80 per cent of market rent. To be able to grant tenancies at affordable

rent, registered providers must have the agreement of the Homes and

Communities Agency (HCA).

Your housing provider’s housing policy must include the criteria in regard to

which circumstances it will grant tenancies at affordable rents levels.

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Factsheet 35 May 2014 9 of 15

Tenants’ rights - rent

7 Useful organisations

The law relating to rights for tenants is complicated. This factsheet aims to

give you basic information about your rights but in many cases you may want

to get more detailed advice from a specialist adviser.

Citizens Advice Bureau (CAB)

National network of free advice centres including advice about national

housing provision.

Tel: 020 7833 2181 (for contact details only – not telephone advice)

Tel: 08444 70 20 20 (Wales)

Website: www.citizensadvice.org.uk

Communities and Local Government

Communities and Local Government has a useful website for more

information. Free booklets about housing issues in England may be obtained

by calling the publication centre on (national call rate). In Wales, see ‘Welsh

Government’ entry below.

Tel: 0303 444 0000

Website: www.gov.uk/government/organisations/department-for-communities-

and-local-government

Homes and Communities Agency (HCA)

The Homes and Communities Agency is the national housing and

regeneration agency for England. The HCA is the new regulator for social

housing providers in England. It set consumer standards but will only

intervene in cases of serious detriment that have caused, or are likely to

cause, harm (in Wales, see ‘Welsh Government’ entry below).

Tel: 0300 1234 500

Email: [email protected]

Website: www.homesandcommunities.co.uk

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Factsheet 35 May 2014 10 of 15

Tenants’ rights - rent

Housing advice services

In some areas there may be a specific housing advice or housing aid centre,

providing advice on a range of housing issues. Your local council or CAB

should be able to tell you if there is a housing advice centre in your area.

Housing Ombudsman Service

Investigates complaints made by tenants of registered social landlords

(including local authorities) that are members of the scheme in regard of their

landlords functions. From 1 April 2013 a complaint must first go to a

‘designated person’ such as an MP, a local councillor or a designated tenant

panel who will try to resolve the complaint. If the designated person cannot

resolve the complaint, they will refer it to the HOS. Complaints can only be

referred to the HOS directly by the tenant if either they waited eight weeks

after exhausting their landlord’s procedure, or the designated person either

refused to refer the complaint, or agreed for the tenant to make a complaint

directly. In Wales, see the entry for ‘Public Services Ombudsman for Wales’

below.

81 Aldwych, London, WC2B 4HN

Tel: 0300 111 3000

Fax: 020 7831 1942

Email: [email protected]

Website: www.housing-ombudsman.org.uk

Legal advice

Solicitors can advise you on the law and represent you in court if necessary.

If approaching a solicitor about a housing matter, check if s/he is experienced

in housing law. Your local housing advice centre or Citizens Advice Bureau

may be able to refer you to an experienced solicitor. If you are on a low

income you may be able to qualify for free legal advice.

For more information see Age UK’s Factsheet 43, Getting legal advice.

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Factsheet 35 May 2014 11 of 15

Tenants’ rights - rent

Local Government Ombudsman (LGO)

For advice on making a complaint, or to make a complaint call the advice line

or write to The Local Government Ombudsman or fill in the form on the LGO

website. In Wales, see the entry for ‘Public Services Ombudsman for Wales’

below.

PO Box 4771, Coventry, CV4 0EH

Tel: 0300 061 0614

Fax: 024 7682 0001

Website: www.lgo.org.uk

Public Services Ombudsman for Wales

The Ombudsman has legal powers to look into complaints about public

services in Wales. The Ombudsman looks to see whether people have been

treated unfairly or inconsiderately, or have received a bad service through

some fault on the part of the public body providing it. The bodies within the

Ombudsman’s jurisdiction include social landlords (local authorities and

housing associations in Wales). There are some complaints that the

Ombudsman is unable to look into; for example, complaints about the level of

rent and service charges set by a housing association. If you have a

complaint about the services provided by a social landlord, you should first

raise the complaint with your landlord and follow their formal complaints

procedure. If you have exhausted the landlord’s complaints procedure and

remain dissatisfied, you are able to contact the Ombudsman’s Complaints

Advice Team for further advice.

The Public Services Ombudsman for Wales, 1 Ffordd yr Hen Gae, Pencoed,

CF35 5LJ

Tel: 0300 790 0203

Email: [email protected]

Website: www.ombudsman-wales.org.uk

Shelter

A national charity providing telephone advice to people with housing

problems on tenancy rights, homelessness, repairs and housing benefit.

Tel: 0808 800 4444 (free call) (textphone for deaf callers)

Website: www.shelter.org.uk

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Factsheet 35 May 2014 12 of 15

Tenants’ rights - rent

In Wales contact, Shelter Cymru:

Tel: 0845 075 5005

Email: [email protected] www.sheltercymru.org.uk

Tai Pawb

An organisation in Wales that promotes equality and social justice in housing.

They are committed to working in partnership with the providers and

receivers of housing services, local authority partners, third sector (voluntary

organisations) and the Welsh Government.

Tel: 029 2053 7630

Email: [email protected] Website: www.taipawb.org

Welsh Government

The devolved government for Wales. The Welsh Ministers have legal powers

to regulate registered social landlords in Wales. The Welsh Government

carries out the day to day regulatory functions on behalf of the Welsh

Ministers. The regulatory approach is guided by the ‘Regulatory Framework

for Housing Associations Registered in Wales’ (December 2011).

Housing Regulation Team, Welsh Government, Housing Division, Merthyr

Tydfil Office, Rhydycar, CF48 1UZ

Email: [email protected]

General contact information:

Tel: 0300 060 3300 or 0300 060 4400 (Welsh)

Website: www.wales.gov.uk

Your local council

If you are not a council tenant and are having problems with your landlord,

your local council may have a tenancy relations officer who can help you. If

your landlord is trying to force you to leave accommodation when you believe

you have the right to remain, your local council should be able to advise you.

Your local council has a duty to provide advice and help if you are threatened

with homelessness.

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Tenants’ rights - rent

8 Further information from Age UK

Age UK Information Materials

Age UK publishes a large number of free Information Guides and Factsheets

on a range of subjects including money and benefits, health, social care,

consumer issues, end of life, legal, employment and equality issues.

Whether you need information for yourself, a relative or a client our

information guides will help you find the answers you are looking for and

useful organisations who may be able to help. You can order as many copies

of guides as you need and organisations can place bulk orders.

Our factsheets provide detailed information if you are an adviser or you have

a specific problem.

Age UK Advice

Visit the Age UK website, www.ageuk.org.uk, or call Age UK Advice free on

0800 169 65 65 if you would like:

further information about our full range of information products

to order copies of any of our information materials

to request information in large print and audio

expert advice if you cannot find the information you need in this factsheet

contact details for your nearest local Age UK

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Tenants’ rights - rent

Age UK

Age UK is the new force combining Age Concern and Help the Aged. We

provide advice and information for people in later life through our,

publications, online or by calling Age UK Advice.

Age UK Advice: 0800 169 65 65

Website: www.ageuk.org.uk

In Wales, contact:

Age Cymru: 0800 022 3444

Website: www.agecymru.org.uk

In Scotland, contact:

Age Scotland: 0845 125 9732

Website: www.agescotland.org.uk

In Northern Ireland, contact:

Age NI: 0808 808 7575

Website: www.ageni.org.uk

Support our work

Age UK is the largest provider of services to older people in the UK after the

NHS. We make a difference to the lives of thousands of older people through

local resources such as our befriending schemes, day centres and lunch

clubs; by distributing free information materials; and taking calls at Age UK

Advice on 0800 169 65 65.

If you would like to support our work by making a donation please call

Supporter Services on 0800 169 87 87 (8.30 am–5.30 pm) or visit

www.ageuk.org.uk/donate

Legal statement

Age UK is a charitable company limited by guarantee and registered in

England and Wales (registered charity number 1128267 and registered

company number 6825798). The registered address is Tavis House, 1-6

Tavistock Square, London, WD1H 9NA. Age UK and its subsidiary

companies and charities form the Age UK Group, dedicated to improving later

life.

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Disclaimer and copyright information

This factsheet has been prepared by Age UK and contains general advice

only which we hope will be of use to you. Nothing in this factsheet should be

construed as the giving of specific advice and it should not be relied on as a

basis for any decision or action. Neither Age UK nor any of its subsidiary

companies or charities accepts any liability arising from its use. We aim to

ensure the information is as up to date and accurate as possible, but please

be warned that certain areas are subject to change from time to time. Please

note that the inclusion of named agencies, websites, companies, products,

services or publications in this factsheet does not constitute a

recommendation or endorsement by Age UK or any of its subsidiary

companies or charities.

Every effort has been made to ensure that the information contained in this

factsheet is correct. However, things do change, so it is always a good idea

to seek expert advice on your personal situation.

© Age UK. All rights reserved.

This factsheet may be reproduced in whole or in part in unaltered form by

local Age UK’s with due acknowledgement to Age UK. No other reproduction

in any form is permitted without written permission from Age UK.