MoneyMagpie Editor and financial expert Vicky Parry explains your financial rights as a tenant in the UK
The rising cost of living means we’re all looking to tighten our belts – but that doesn’t mean tenants should let landlords take advantage by passing on costs to them. Tenants in the UK have certain rights when it comes to financial responsibilities of a property, so it’s important to know where you can draw the line with your landlord.
Check your tenancy type
This article refers to those with an Assured Shorthold Tenancy, which is most standard rental agreements in the UK. If you live in a House of Multiple Occupation (HMO) or with your landlord as a lodger, your rights will be different – Shelter has lots of advice on your rights with this type of contract.
Rent rises
With the cost of living crisis continuing and a world in economic turmoil, costs for landlords are increasing, too. However, the amount the costs rise compared to rents rise is disparate, and some landlords are trying to increase rent during an existing tenancy.
If you have a fixed term contract, you have a right to pay the rent agreed for the term of the contract. They can serve a Section 13 notice when that period is up to tell you that the rent will be going up, but not before. If you have a rolling week-to-week or month-to-month contract, your rent can usually only be increased once in twelve months. They must give you a month’s notice of the change, unless you have a yearly contract in which case they must provide six months’ notice of the change.
A rent increase must be “fair and reasonable” in line with local rent. If you think your landlord is proposing a significantly higher rent than is reasonable, you can contest it via a tribunal service.
Rent deposits
When you’re moving into a new property you will need to pay a security deposit. The rules state that this can be a maximum amount of 5 week’s rent if the annual rent is below £50,000, or six weeks if it is over. The landlord must put your deposit into a registered deposit protection scheme. They cannot keep the money themselves. When you move out, if the landlord wants to keep some of the deposit to pay for things like damages, you can contest the costs through the deposit scheme.
Rental credit and referencing checks
Since 2019, a prospective landlord or letting agent cannot ask a tenant or prospective tenant to pay fees to complete credit checks, referencing, and other administrative fees. The only fees you can be charged for are those involved in changing your tenancy (such as adding a new tenant part-way through the tenancy term), late rent fees, ending your tenancy before the term finishes, and lost keys or key fobs.
Stipulating your living preferences
Some landlords try to micromanage their tenants, which amounts to a disruption of their legal right to peace in their property. This can look like things such as asking tenants to keep windows open during winter to prevent mould instead of providing reasonable solutions like installing a suitable bathroom fan.
Some may also try to control the thermostat, either stipulating it must be set above or below a certain level at particular times of year. Unless you’re a lodger living with your landlord, they have no say in how hot or cold you like to live! You may also find clauses that require the hire of a cleaner or a gardener.
A contract can include this but they cannot stipulate which service you use or how regularly you use it, and they must not require you to pay for a service. For example, a contract cannot say you “must pay for a professional clean” at the end of the tenancy, but can say the property must be “kept to a professional standard”.
Of course, there is also an obligation to tenants to respect the property they are in. So, while you might not want to pay for a regular gardener you should carry out basic garden maintenance regularly (such as cutting grass, emptying bins, and keeping the area generally tidy). Or, if you don’t want your thermostat set high, invest in a heated airer and dehumidifier to help dry your clothes in winter and prevent mould.
Water meter rights
Did you know that if you’re responsible for paying the water bill, you have a right to have a water meter installed on your property as a tenant? Your landlord can only refuse if your tenancy is for less than six months. A water meter is a permanent change to a property as it cannot be reversed. It’s important to notify your landlord of the change so that they are aware the property is now metered.
Why would you want a meter? In many cases, it could save you hundreds of pounds per year on your water bill. Homes with fewer people than bedrooms, or single or couple occupancy homes are often better with a meter. You pay for the water you use, rather than estimates based on your property size and location.
Energy bill rights
Unless your bills are included in your rent, if your name is on the bill and you’re responsible for paying directly to the energy supplier – you have a right to choose and switch tariffs and supplier. Many landlords will have kept on a legacy tariff from previous tenants, transferring the account with each new tenant. This means you could be paying more than you need to.
Shop around to compare energy prices and check the details of your current tariff to ensure there are no exit fees to pay. You should let your landlord know who is providing the energy to the property, but they do not have a right to refuse a particular supplier.
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