Dosh dilemma: Nina's landlord wants to put her rent up by £250 a month. Should she stay or move?

Nina loves where she lives. She's settled in her home, gets on well with her neighbours and is close to work and family.

But, her landlord has said her monthly rent is going up by £250.

That's an extra £3,000 a year, money Nina doesn't have.

She's worried about how she'll afford the increase, but moving isn't cheap either. She'd need to find money for a deposit, removal costs and possibly higher rent somewhere else.

Nina is now wondering whether she should accept the increase, challenge it or start looking for somewhere new.

What should she do?

Can Nina's landlord increase her rent by £250?

The first thing Nina needs to know is that her landlord can't simply increase her rent whenever they feel like it.

There are rules they must follow.

For most private renters in England, the renters' rights act introduced important changes earlier this year.

Under the new rules, landlords generally:

• can only increase the rent once a year
• must give at least two months' notice
• must use a formal Section 13 notice 
• must set a rent that reflects the property's open market value

This means the landlord can't just pick a figure and expect Nina to pay it.

If the correct process hasn't been followed, the proposed increase may not be valid.

Is a £250 rent increase fair?

Nina shouldn't assume the increase is reasonable just because her landlord has asked for it.

She needs to find out whether the new rent is in line with similar properties nearby.

A good starting point is to:

• look at rental listings for similar homes in her area
• compare properties with a similar number of bedrooms and facilities
• check whether the properties are in a similar condition
• consider whether her landlord has kept her home in good repair

If similar properties are renting for much less than Nina's proposed new rent, she may have a good reason to challenge the increase.

She should also keep copies of any property listings she finds. These could help support her case if she decides to take things further.

Negotiate with her landlord

Before thinking about moving or taking legal action, Nina could try talking to her landlord.

She doesn't have to accept the first increase she's offered.

She could explain that an extra £250 a month is beyond her budget and ask whether the landlord would consider:

• a smaller increase
• introducing the increase gradually
• keeping the rent at its current level

Nina could also remind her landlord that she's a reliable tenant who pays her rent on time and looks after the property.

Finding a new tenant can be expensive and time-consuming. Her landlord may prefer to keep someone they know and trust rather than risk the property sitting empty.

If they agree to a different amount, Nina should make sure the agreement is confirmed in writing.

Challenge the increase 

If Nina believes the proposed rent is too high and can't reach an agreement with her landlord, she may be able to challenge it through the first-tier tribunal.

The tribunal can look at what similar properties are renting for and decide what a fair market rent should be.

But, challenging an increase doesn't automatically mean Nina's rent will stay the same.

The tribunal could:

• agree with the landlord's proposed rent
• set a lower increase
• cancel the proposed increase
• in some cases, decide that the market rent should be lower than Nina currently pays

There’s an application fee of £47, although people on a low income may be able to get help with tribunal fees.

Could Nina be evicted for challenging the increase?

Nina is understandably worried that by questioning the increase, she could find herself being told to leave.

But her landlord can’t evict her just because she's challenged a rent increase.

Since the renters' rights act came into force, Section 21 no-fault evictions have ended in England. Landlords must have a valid legal reason to regain possession of a property and follow the correct process.

Look at getting help with her rent

If the increase goes ahead, Nina should check whether she's entitled to financial support.

Depending on her circumstances, she may be able to get help through:

• universal credit, including the housing element
• housing benefit, if she's eligible
• discretionary housing payments from her local council, if she's receiving qualifying housing support and struggling with housing costs

She should also check whether she's claiming all the benefits she's entitled to.

Should Nina stay or move?

Moving might seem like the easiest way to avoid the increase, but Nina needs to look at the full cost before making a decision.

Moving home can involve:

• paying a new tenancy deposit
• covering rent in advance
• paying removal costs
• buying new furniture or household essentials
• paying more for travel if the new property is further from work or family

She should compare the cost of moving with the extra £250 a month.

If she can find a similar property for considerably less, moving might save her money in the long run.

But if rents in her area have increased across the board, she could end up paying just as much elsewhere, or even more.

Nina should also think about how important her current home is to her. Being close to work, family and friends has value too.

The important thing is not to panic or rush into signing a new agreement or moving out.

A little research and some advice could help Nina save money and avoid making a decision she later regrets.