Research has revealed that there are clear links between financial insecurity and poor mental health, as those with money problems are significantly more likely to report suffering sleepless nights, feeling depressed, and lacking in energy. It was also recently reported that one in three private renters are spending at least half their household income on rent as competition for properties drives up prices.
Below, Connor Campbell, personal finance expert at NerdWallet, outlines what rights private renters have who may be feeling more worried or overwhelmed about financial insecurity, during a time of surging rents and uncertain tenancies:
Rent increases
Landlords can suggest a rent increase but tenants do not have to agree to it. According to Citizens Advice, Tenants have the right to challenge rent increases that they feel are unfair or don’t follow the rules outlined in their tenancy agreement.
To prevent unfair rent increases, landlords must notify tenants with a minimum of one month's notice if they pay weekly or monthly, or six months if they pay yearly.
If tenants are unhappy or disagree with a rent increase, or if a landlord hasn’t followed the correct procedure, then it’s best to get in touch with them directly to discuss paying a lower price. Tenants also have the right to challenge the rent increase and have a tribunal decide the outcome if they fail to reach an agreement with the landlord.
Eviction notice
When evicting tenants, landlords and letting agents must follow strict procedures. Tenants must be given four weeks' notice if they have lived in a property for less than 10 years, or 12 weeks' notice if they have lived there for 10 or more years.
Shelter UK state that it is illegal for a landlord or someone on their behalf to refuse tenants entry to parts of the home, forcefully evict tenants through threats or harassment, physically kick tenants out, or change the locks without tenants knowing.
Change in property ownership
It’s important that tenants know their rights if a landlord chooses to sell their property. When ownership of the property changes, the new owner is legally obligated to allow the sitting tenant to continue their tenancy agreement until the fixed term ends and honour any terms originally set out with the previous landlord.
Although the new landlord is legally obliged to accept the sitting tenant, they do also have the ability to evict them from the property by following the legal eviction process and removing them from the tenancy.
Getting a deposit back
As the end of the tenancy approaches, tenants should request their deposit back, the landlord then has 10 days to respond and open a discussion about potential deductions.
To avoid deductions to a deposit, Citizens Advice recommends the tenant ensures the property is up to a good standard by referring back to the move-in inventory. Larger repairs or damage to the property that haven’t been reported to the landlord will lead to deductions from the deposit.
Additionally, any unpaid rent or bills, missing/broken items, and cleaning costs can contribute to further deductions from the deposit.
If the landlord does propose any deductions, they must provide a good reason as to why money is being deducted. The tenant should request this in writing, such as over email so they can refer back to it if they decide to take action and challenge the proposed deductions.
Connor comments: “Millions of private renters have been stretched to breaking point within the last few months as rent prices continue to rise.
“With the cost of living crisis continuing to impact budgets with little signs of slowing down, it can be an extremely worrying time for private renters in the UK. On top of struggling to pay for rising food and energy prices, private renters who have trouble affording their rent payments can be faced with additional issues such as the risk of getting into debt or potentially being evicted from their homes.
“It’s important that tenants are aware of what rights they have when dealing with situations such as rent increases, the risk of eviction, ending a rental agreement, and getting the deposit back that may occur off the back of the rising cost of living.”
