[2024] UKUT 53 (LC)

Section 13 of the 1988 Act provides, so far as relevant:

“13.

(1)  This section applies to—

(a)

a statutory periodic tenancy …; and

(b)

any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

(2)

For the purpose of securing an increase in the rent under a tenancy to which this section applies, the landlord may serve on the tenant a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice, being a period beginning not earlier than—

(a)

the minimum period after the date of the service of the notice; and

(b)

except in the case of a statutory periodic tenancy

(i)

in the case of an assured agricultural occupancy, the first anniversary of the date on which the first period of the tenancy began;

(ii)

in any other case, on the date that falls 52 weeks after the date on which the first period of the tenancy began; ….

…

(3)

The minimum period referred to in subsection (2) above is—

(a)

in the case of a yearly tenancy, six months;

(b)

in the case of a tenancy where the period is less than a month, one month; and

(c)

in any other case, a period equal to the period of the tenancy.

…

(4)

Where a notice is served under subsection (2) above, a new rent specified in the notice shall take effect as mentioned in the notice unless, before the beginning of the new period specified in the notice,—

(a)

the tenant by an application in the prescribed form refers the notice to [the FTT]; or

(b)

the landlord and the tenant agree on a variation of the rent which is different from that proposed in the notice or agree that the rent should not be varied.

(5)

Nothing in this section (or in section 14 below) affects the right of the landlord and the tenant under an assured tenancy to vary by agreement any term of the tenancy (including a term relating to rent).

To summarise, if an assured periodic tenancy contains provision for the rent to increase then rent can be increased in accordance with that provision. However, where an assured periodic tenancy does not contain such provision, or when a statutory tenancy comes into effect after the end of a fixed-term assured tenancy, then the rent may be increased by following the procedure in section 13. In London District Properties Management Limited v Goolamy [2009] EWHC 1367 (Admin) the High Court held that provisions for rent increase in a fixed-term assured tenancy were no longer in effect during the statutory tenancy that arose after the end of the assured tenancy.

The procedure is initiated by the landlord sending a notice which must propose a new rent to take effect at the beginning of a new period of the tenancy, no less than a month after the date of the notice and in most cases on a date at least 52 weeks after the start of the tenancy.

Section 13(4) enables the tenant to refer the notice to the FTT. The reference is not an appeal; in response to such a reference the FTT will determine a market rent for the property as prescribed by section 14 of the 1988 Act.