The Office for National Statistics (ONS) says one in five of these properties it surveyed saw their monthly rent increase 10% or more between February 2022 and February 2023.
The figures – described as 'particularly painful' in London – reveal the pressure that tenants are facing during the cost of living crisis.
Here, Which? analyses how rental figures have changed in the past year, which regions fare the worst, and how tenants can challenge rent rises.
Rent increased at majority of homes
The ONS tracked rental price changes of individual properties over time.
It found that 50.6% of privately rented properties in its survey in England experienced a price increase between February 2022 and February 2023, compared with 36% the year before.
Of those to experience a hike, the ONS estimates the average price increase was 9.6% – up from 7% from 12 months ago.
The average rental price percentage increase over the year was highest for properties in London (12%) and lowest for homes in the West Midlands (8.2%).
For most of the remaining properties (46.6%), prices remained constant, while just 2.8% had seen a rent decrease.
The ONS points out that tenancies may have changed over the course of the year, meaning the figures don’t show how many tenants saw a rise or reduction in rental costs. The figures instead reveal how the rent fees at properties have altered.
Our graph below shows what proportion of privately rented homes in each region experienced a rent hike in the year to February according the ONS research.
London rental market is 'particularly painful'
In London, two thirds (66.8%) had seen an increase. Unsurprisingly, this was highest of all regions and well above the England average of 50.6%.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'The figures in London are particularly painful, with more than two thirds of rents hiked an average of 12%.
'Given that private renting is far more common in London – at 29% compared to an average of 19% – the impact is felt even more widely.'
What's causing the price of rent to rise?
Rising rents have been driven by a surge in demand since the pandemic, combined with a shortage of rental homes. It's this imbalance between supply and demand that has caused prices to shoot up.
According to Zoopla, private supply has grown just 1% since 2016. And over the last 18 months there has been a sharp drop in rental stock, with the number of available properties tumbling by 33%.
In an effort to make profits, they need to recoup the money from tenants in the form of rent rises or need to sell up entirely.
Find out more:Can your landlord increase your rent?
Hearing from your landlord that your rent is poised to go up is news no tenant wants to hear. But in the current climate, it's a common occurrence which millions are facing.
Landlords can increase the rent under section 13 of the Housing Act, but as a tenant you have rights and it's important to be fully aware of them.
Fixed-term contract
If you're in a fixed-term contract (likely to be six or 12 months), the landlord cannot put up rent until the contract ends, so you should be safe from any increases during that time period.
There may be a rent review clause in the contract allowing the landlord to raise the price midway through, so make sure to dig out your tenancy agreement and read the small print.
The landlord must give at least one month's notice, and if the fixed term is a year, they must give six months' notice.
Periodic tenancy
For a periodic tenancy, which is a rolling contract on a week-by-week or month-by-month basis, your landlord cannot normally increase the rent more than once a year without your agreement.
If it is to increase, they must give you a minimum of one month’s notice (if you pay rent weekly or monthly).
Find out more:How much can your landlord increase rent by?
The government stipulates that landlords must be fair and realistic about rental increases.
Any rent rise must be in line with the prices of other local properties. For example, if you're renting for £1,200 per month, but similar properties in the area are fetching £1,350, your landlord would be within their rights to ask for a £150 per month increase.
But as mentioned above, the raise can only come once a year for periodic tenancies – or at the end of a contract for those on a fixed-term.
Can you refuse the rent increase?
Tenants unhappy with a proposed rent hike can try to negotiate to agree to a better deal. You might be able meet in the middle as some landlords would prefer to slightly decrease the rent increase, rather than have to find a new tenant.
If you think your rent is excessive compared with similar properties in your area, you can apply to a tribunal. You'll need to apply before the date your rent increase is due to start.
Before heading down the tribunal route, it's good to speak to your landlord to see if an agreement can be reached. If one can't be reached, then the tribunal will decide for you.
It can take up to 10 weeks for a decision to be made, and if it is agreed that your rent should be increased, you'll have to pay it from the date given on the section 13 notice.
Do you pay rent during a dispute?
Be aware that you must keep paying your rent in the meantime, even if you're challenging a rise.
Refusing to keep up with your rental payments will see you fall into rent arrears. This could be used against you by your landlord and you could be evicted.
What to do if you can't pay your rent
They aren't obliged to offer support but may be willing to discuss a compromise that will enable you to keep living in the property. This could involve reducing your monthly payments for a set period of time while you get on top of your finances.
Tenants in England or Wales may be able to qualify for the Debt Respite Scheme – also known as Breathing Space. This gives you a 60-day window in which the landlord won't be able to take enforcement action.
Find out more:source https://www.which.co.uk/news/article/rents-hiked-on-the-majority-of-homes-in-the-last-year-what-are-your-rights-aB8MX5z95iOG