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Rent increases (Wales)
What are your rights as a tenant? Can you challenge a rent rise?
Rents in Wales rose by 8% to £730 a month on average in the 12 months to April 2024, according to the latest figures from the Office for National Statistics. This follows a record-high rise in November 2023. In this guide, we take you through when your rent can and can’t be put up, how to challenge an increase and where to get one-on-one help.
Can you challenge rent rises? Plus renters rights, from repairs and damp, to pets & disputes
This is outside our expertise, but don’t worry, MSE’s founder & chair has got it covered, via his spin-off BBC Not The Martin Lewis Podcast, where he takes on subjects he doesn’t cover, by putting your questions to a team of specialists.
Listen to 'Renters rights June 2024' for free via
BBC Sounds | Apple | Spotify
(transcript available below)
or elsewhere they let you play good (or mediocre) podcasts
It includes details on key topics, with specific information for all four UK nations, including…
- Can you challenge a rent rise?
- What if your property needs repairs or is damp?
- Can your request for a pet be rejected?
- How to deal with letting agents & council landlords
Rent increase rights around the UK...
This guide covers Wales only. The rules are different elsewhere in the UK – see our other guides if you live in:
This is a relatively new guide – please let us know if you've found it helpful or if anything's missing by posting your feedback on the MSE Forum or X, formerly Twitter. While every effort's been made to ensure accuracy, it doesn't constitute legal advice tailored to your circumstances.
Thanks to housing rights solicitor Danielle Pinocci-Hall of CJCH Solicitors for her help.
The type of property and rental contract dictate the rules
When it comes to rent increases, your rights depend on the type of accommodation you're in and the type of tenancy (contract) you have.
On 1 December 2022, a new housing law called the Renting Homes (Wales) Act 2016 came into force which aimed to simplify rental contracts in Wales (for ease, we'll refer to this law as the Renting Homes Act throughout the rest of this guide).
- If you started renting on or after 1 December 2022, you'll either be on a 'standard contract' – which is generally used if you're renting privately – or a 'secure contract', which is generally used when you're renting via social housing.
- If you started renting prior to 1 December 2022, you'll typically be on what's known as a 'converted' contract version of either a standard or secure contract. However, there will be some on contracts from pre-15 January 1989 that are actually known as 'regulated' or 'protected' tenancies and here the rules are different again.
Live in social housing and pay your rent to a landlord or letting agent? Rent increases are currently capped
Social housing rents usually go up once a year in April, in line with inflation. However from April 2023, the Welsh Government capped social rent increases to a maximum of 6.5% in response to the rising cost of living, so your rent should not have gone up by more than this.
If you think your rent’s been put up by more than 6.5%, contact your social housing provider and ask it to explain the increase. If you aren't happy with its explanation, whether you can take your complaint further depends on the type of contract you have.
- If your contract started before 1 December 2022. You have the right to challenge your rent increase using Rent Assessment Committees, which are independent tribunals set up to resolve renting disputes. If you plan on making a complaint, you'll need to do so within two months of receiving notice from your landlord of the rent increase.
- If your contract started on or after 1 December 2022. Unfortunately, you don't have any recourse to challenge your rent increase with the Rent Assessment Committee. However, you can contact the Public Services Ombudsman for Wales to make a complaint.
In both cases, your landlord will need to issue a formal notice for a rent increase called a 'RHW12 notice' and provide at least two months notice of the rent increase.
Live in private rented accommodation and pay rent to a landlord or letting agent? Check your contract for the rules
Again, when you started renting will depend on what type of contract you have and what your rights are. Dig out the paperwork – it'll come in handy for this.
Most private tenants will have a standard contract or a converted standard contract
If you rent your home from a private landlord and they don't live with you, you likely have what's known as a standard contract if you started renting on or after 1 December 2022 or a converted standard contract if you started renting prior to 1 December 2022. This gives you certain rights and protections.
Standard and converted standard contracts are the most common types of rental agreement. Most new tenancies are automatically standard contracts, replacing the old 'assured shorthold tenancies' after the Renting Homes Act came into effect. Your written contract should say what type of agreement it is, often on the front page.
On a standard contract – do you have a fixed term or rolling contract?
- Fixed term standard contracts or 'converted' fixed term standard contracts. Often, your tenancy will start like this – for example, there'll be a fixed term of six, 12 or 24 months beginning on a specific date. Check your tenancy agreement to see when it started and how long it's for.
You have stronger rights during the fixed term of your tenancy – see below for when your rent can rise during the fixed term of your standard contract.
- Rolling or 'periodic' standard contracts or 'converted' periodic standard contracts. This is where your tenancy rolls over from one rental period to the next – for example, month to month. You might have agreed to this from the beginning, or it may have come about after the end of your fixed term (either automatically or because you chose it).
In a rolling or periodic tenancy, you're less protected from rent increases, but that doesn't mean you should just accept any proposed rise – see below for when your rent can rise during your periodic standard contract.
When you might not have a standard or converted standard contract
If your tenancy started before 15 January 1989, you probably have what's known as a regulated tenancy or protected tenancy rather than a standard contract. These tenants have a high level of security and are entitled to ‘fair rents’, which can normally be increased once every two years.
Both regulated tenants and landlords can apply to the Welsh Government's Rent Officers Wales department to set a fair rent.
If you live with your landlord or pay rent to your employer as part of your job, you're also unlikely to have a standard contract. Depending on your exact circumstances, you may have less protection from eviction if you don't agree to a rent increase.
If you don’t have a standard contract, your landlord should set out the procedure for a rent increase, for example with a rent review clause.
The exact rules are complicated, so if any of these apply to you it's best to get one-on-one help. If you're still not sure what type of tenancy you have, you can check Shelter Cymru's guidance on different types of rental contracts.
Important: You could be due compensation if your landlord didn't offer you a converted contract by 1 June 2023.
When the Renting Homes Act came into force, landlords were given until 1 June 2023 to provide certain renters with new written converted contracts. This included private renters with an assured shorthold tenancy and social renters with a secure or assured tenancy contract.
If you didn't get this, and your written contract is still either an assured shorthold tenancy or a secure or assured tenancy contract, you could be due up to two months rent in compensation.
To claim compensation and to get your landlord to update your contract, you’ll need to do so via court proceedings – but be warned that there are fees involved. For more info, see our Small claims court guide. You can also see below for how to get one-to-one help.
Plus, to make a complaint if you feel your landlord behaved unfairly, you may want to contact the Public Services Ombudsman for Wales.
Rent increases during the fixed term of a standard or converted contract – your rights
During the fixed term of your standard or converted contract, your rent can ONLY be raised if:
- You agree to the increase.
OR
- You start paying the new amount (even if you didn't agree with it). In law, paying the new rent, even just once, is considered agreeing to it and makes you liable for it going forward, regardless of how you feel about it or other actions you take. So if a rent rise has been proposed, consider your options carefully before paying the higher amount. And don't delay or put this off, as falling behind on your rent could lead to you being evicted.
OR
- You sign a new tenancy agreement. For example, when your tenancy agreement ends and you renew for another fixed term or when there is a change to the tenancy agreement that might require a new contract to be put in place.
Here, there is no legal limit on how often or by how much your rent can go up if you agree to it or sign a new agreement – but, crucially, you DON'T have to do so, and you shouldn't be made to feel pressured into it. See what to do if your rent is being put up.
Note: A RHW12 form, which is a formal notice of a rent rise, CAN'T be used to increase your rent if you have a fixed term contract. Your landlord can only serve you with a notice once your fixed term contract has ended and, if you haven't signed a new fixed term agreement, you've rolled onto a periodic contract.
If you've been served one, you must be given at least two months notice. It's also worth checking your notice is actually valid – see below for how to challenge a RHW12 notice.
Rent increases in a rolling (periodic) standard or converted contract – your rights
If you're on a rolling or periodic standard or converted periodic standard contract, your rent can ONLY be raised if:
- You're served a valid RHW12 notice. This is a formal rent rise notification, which can be used to increase your rent without your agreement. However, the proposed new rent shouldn't be higher than the rents for similar properties in the same area and you should be given at least two months notice. See what to do if you get a RHW12 notice.
OR
- You agree to the rent increase.
OR
- You start paying the new amount (even if you didn't agree with it). In law, paying the new rent, even just once, is considered agreeing to it and makes you liable for it going forward, regardless of how you feel about it or other actions you take. So if a rent rise has been proposed, consider your options carefully before paying the higher amount. And don't delay or put this off, as falling behind on your rent could lead to you being evicted.
OR
- You sign a new tenancy agreement. For example, if you sign onto a fixed term contract or when there is a change to the tenancy agreement that might require a new contract to be put in place.
Here, there is no legal limit on how often or by how much your rent can go up if you agree to it or sign a new agreement – but, crucially, you DON'T have to do so, and you shouldn't be made to feel pressured into it. See what to try if your rent is being put up.
Been served a RHW12 notice? Check it's valid
A RHW12 form is a formal rent rise notification, which can be used to increase your rent without your agreement in certain circumstances.
If you've received a RHW12 notice form, the first thing to do is check whether it's valid – if it isn’t, the new rent won't apply. A RHW12 notice CANNOT be used and will be automatically invalid if:
- The notice is trying to increase the rent during the fixed term of your tenancy. You cannot legally be served a RHW12 notice while you’re on a fixed term contract. You can only be served a notice at the end of your fixed term if you have not signed a new fixed contract and have rolled onto a periodic contract.
OR
- It's been less than a year since the last RHW12 notice. These notices can only be used once every year.
OR
- Your landlord hasn't given you at least two months notice of the rent increase. All tenants should be given at least two months notice of a rent increase, otherwise the notice is not valid.
There are other reasons the notice might not be valid. According to charity Citizens Advice, this includes where: your landlord hasn't signed your notice, your landlord hasn't used a proper RHW12 form, your landlord isn't registered with Rent Smart Wales (Wales' centralised landlord licensing authority), or the increase is deemed unreasonable because, for example, your home is in a very bad condition.
When you can challenge a RHW12 notice
There are three possible situations where you have the right to challenge your RHW12 notice:
- You think your RHW12 notice isn't valid – see the reasons outlined above.
- Your home has been deemed unfit for human habitation under the Renting Homes (Fitness for Human Habitation) Regulations 2022. In this instance, you are not required to pay any rent for the period of time your home is deemed unfit for human habitation. Tenants have to consider this course carefully as withholding rent may lead to rent arrears and eviction. It'll be up to a judge to decide whether your home is in such disrepair that it was reasonable for you to stop paying rent.
- Your contract started before 1 December 2022 and you disagree with the increase. For example, because the proposed rent is higher than the rent for similar properties in the same area and you haven't been able to reach an agreement with your landlord.
Unfortunately, if your contract started on or after 1 December 2022, you DON'T have the right to challenge a rent increase unless your RHW12 notice is invalid or your home has been deemed unfit for human habitation.
How to challenge a RHW12 notice
How you can go about challenging a RHW12 notice depends on which type of contract you have.
If your contract started before 1 December 2022 (converted contracts)
In the first instance, it's worth trying to talk to your landlord about the proposed increase. Explain why you think the increase is unfair or unlawful and ask them to reconsider.
If you can't reach an agreement informally, the formal process for challenging an invalid and valid RHW12 notice is the same. You need to ask a tribunal to review your case and the proposed increase before the date the new rent starts.
You'll need to first print and complete the relevant form on the Residential Property Tribunal Wales website (link opens a PDF). You'll also need to provide a copy of your RHW12 notice and a written statement detailing why you think the increase is unfair with your application.
The application is free, however, note that if the tribunal goes ahead and you require legal advice or representation, you will have to pay for this yourself. You should get a decision within ten weeks once the process has started. In the meantime, you should keep paying your existing rent amount.
If your RHW12 notice is found to be invalid, then the rent increase will not be enforced and your rent will remain at its existing rate.
If your RHW12 notice is valid, the tribunal can still decide a new rent depending on the circumstances. But be warned, while this may be lower or the same as the initial proposed increase, it could also be HIGHER. As a result, going to the tribunal to challenge a valid RHW12 carries a risk.
If your contract started on or after 1 December 2022 (standard contracts)
Talk to your landlord and explain why you think the proposed rent increase is unfair or unlawful, and ask them to reconsider.
Remember – your rent can only be increased if the correct procedure is followed or a valid RHW12 notice is issued. Otherwise, the increase won't be legally binding unless you agree to it and start paying the new amount.
Unfortunately, you can't use the tribunal process to formally challenge a RHW12 notice if you have a standard contract – so if you think your RHW12 isn't valid or that your landlord hasn't followed the correct procedure in any way, you should get one-on-one help.
What to do if your rent is lawfully being put up
Of course, what the law says about your rights as a private renter is one thing – what you can do in reality is another. The key thing to stress:
You're NOT powerless
Here are the steps you can take if you're a private tenant facing a rent increase:
- Know your rights. Reading this guide is a start – hopefully, it's given you an indication of whether the increase is allowed in the first place.
If you're worried about eviction, need help with repairs or have a concern about the safety of your home, you can get info about your rights from housing charity Shelter Cymru.
- Been served a RHW12 formal rent increase notice? Check it's valid. This notice CAN'T be used to increase your rent during the fixed term of an assured shorthold tenancy. And even if you're outside the fixed term (on a rolling or periodic tenancy), it could still be invalid. See our full RHW12 help.
- Check rents in the surrounding area. See if the new rent your landlord is proposing is in line with rents for similar properties in a similar condition to yours. If not, you have a stronger case to...
- Negotiate. Try to talk to your landlord and see if you can reach an agreement for a lower (or no) increase. After all, evicting you and getting a new tenant in would be a hassle and could cost your landlord fees if they use an agent. If you've been a good tenant (paying the rent on time and taking good care of the property), emphasise that point in the discussion.
If you can't get the increase waived or lowered, you could instead try asking for some of the extra money to be put towards improvements to the property – a more efficient boiler or new carpets, say. Or you could take the opportunity to ask if you can keep a pet.
- Get one-on-one help. This is especially important if you're struggling or feeling pressured into paying more. See where to get help.
Should you agree to a rent increase?
Sometimes, agreeing to a modest, reasonable rent increase could be the best option – or the only realistic one (once you've followed the steps above).
Why? To put it bluntly: if you don't agree to an increase, you could be evicted. That's the problem facing many private renters today in a nutshell.
Under the current rules, if you refuse a rent increase, your landlord can take steps to end your tenancy and evict you – for example, you could be served with a RHW16 or RHW17 'no fault' notice, which have replaced section 21 'no fault' notices.
These new notices were introduced under the Renting Homes Act and make it harder for landlords to evict on 'no fault' bases.
You are protected from this if you're within your fixed term, unless your agreement has a break clause allowing for the tenancy to be ended early. But if you're on a rolling tenancy, the risk is unavoidable.
Where to get one-on-one help
Housing charity Shelter Cymru can advise you on your rights and options if you're dealing with a rent increase.
- Web chat: Chat to an advisor online
- Phone: 08000 495 495
- Opening times: Monday to Friday, 9am to 4pm
Again, you may have to try more than once before you get through as it can be very busy.
If you don't feel confident speaking to your landlord or you need help to challenge a rent increase, Advicelink Cymru – which is the Welsh Government-funded Citizens Advice service – can help.
- Phone: 0800 702 2020
- Opening times: Monday to Friday, 9am to 5pm
Its helplines can be very busy, so you may have to try more than once before you get through.
Charity LawWorks Cymru offers free face-to-face legal advice to people who can't get legal aid and cannot afford to pay for legal help.
You can check if there's a clinic in your area by using LawWorks' online search tool.
Been given an eviction notice? Get free legal advice
If you've received a written notice of eviction, you should be able to access free advice from a housing expert through the Government's new service for people at risk of losing their home.
You can find your nearest provider by typing in your postcode and ticking the box 'Housing Loss Prevention Advice Service' on the Gov.uk legal advice search tool.
Your council should be able to help if your home is unsafe or if you're at risk of an illegal eviction.
Some (sadly not all) councils also have 'tenancy relations' or 'tenancy support' teams for private renters, which may be able to advise you on dealing with a rent increase.
Contact your local council to see what help it can offer.
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