NEW RULES ON THE TIMING OF RENT INCREASES

11 Feb 2003 01:15 PM

The Government has changed the rules on the timing of rent increases for assured periodic tenancies in England and Wales.

The Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003 will from today stop the forward drift of rent increase dates for the most common, weekly, tenancies by enabling landlords to choose to set a fixed day, such as the first Monday in April, for rent increases for these tenancies in the future.

The accompanying regulations, The Assured Tenancies and Agricultural Occupancies (Forms)(Amendment)(England) Regulations 2003, contain two new prescribed forms of notice for rent increases. The change could affect nearly 1.2 million assured periodic tenancies in England.

The change will reduce administrative burdens for private and housing association landlords, and uncertainty for tenants.

The forms are for use for premises in England. The National Assembly for Wales is prescribing forms for use for premises in Wales.

Notes for Editor

1. The Regulatory Reform Order and the accompanying regulations will be available from either Wednesday 12 or Thursday 13 February on the HMSO website (www.hmso.gov.uk) and subsequently on the ODPM website www.odpm.gov.uk.

2. The accompanying regulations, containing two new prescribed forms of notice for rent increases, apply in England only. One form applies to assured periodic tenancies and contains the new rule and the other form applies to agricultural occupancies and continues the existing anniversary rule. The National Assembly for Wales is separately prescribing forms for use for premises in Wales.

3. There are currently almost 2 million assured periodic tenancies held by tenants of Registered Social Landlords (RSLs, commonly known as housing associations) and private landlords. Of these, approximately 1.2 million are weekly tenancies.

4. The rules on the timing of rent increases are set out in Section 13 (2) (b) and (c) of the Housing Act 1988.

5. The reform applies to England and Wales only. It does not affect agricultural occupancies.

6. In October 2002, following consultation, a draft Regulatory Reform Order was laid before both Houses of Parliament for scrutiny. Both the Regulatory Reform Committee of the House of Commons and the Delegated Powers and Regulatory Reform Committee of the House of Lords were satisfied that the proposed Order met the requirements of the Regulatory Reform Act 2001 and should be approved. The proposal was approved by the House of Commons on 30 January 2003 and following a debate by the House of Lords on 6 February 2003.

7. This is the second Order from the Office of the Deputy Prime Minister to be brought forward under the Regulatory Reform Act 2001.

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