Archive Website of the UK government

Please note that this website has a UK government accesskeys system.

Archive brought to you by Cross Stitch UK

Main menu

Wednesday, 3 October 2023

Deposits, rent and changing a tenancy agreement - private renting

Your tenancy agreement covers many of the legal rights and obligations for landlords and tenants. However there are other issues both parties must be aware of. Find out how to change a tenancy agreement, what happens if a tenant dies and information on rent increases and subletting.

Paying a deposit

As a landlord, you can ask a tenant to pay a deposit before they move in. You can then keep all or part of this deposit if they:

  • leave the property owing rent
  • damage the property
  • do not pay their bills

You should negotiate the amount of deposit with your tenants - usually about one month's rent. Tenants may be able to sublet parts of the property if they pay a deposit worth more than two months' rent as this counts as a 'premium' which gives them additional rights.

The tenancy agreement should clearly state when a deposit can be fully or partly withheld. For example, you should only withhold the amount needed to repair any damage that the tenant has caused.

Before the tenant moves in, you should draw up a list of furniture, kitchen equipment and other items in the property and both agree on the list's contents.

When you take a deposit you must protect it with one of the government-approved tenancy deposit schemes and inform the tenant that this has been done.

What if a tenant can't afford a deposit?

If you are a tenant and cannot afford an initial deposit, you may be eligible for a deposit guarantee scheme. Under this scheme, your local council will send a guarantee to your landlord for the deposit. You should contact your local council for more information.

Agreeing rent increases

Landlords and tenants should agree how and when the rent will be reviewed. This information should be included in the tenancy agreement.

If the tenancy agreement runs for a set period of six months or more (fixed-term), the agreement should say that rent will either be:

  • fixed for the length of the term
  • reviewed at regular intervals - and include information on how to review it

If the tenancy is a periodic tenancy (rolling on a month-by-month basis) the agreement should say how often the rent will be reviewed.

When rent can be increased

Both parties can agree a rent increase for a periodic tenancy at any time and should confirm the increase in writing. You should include a clause in the agreement that allows a yearly increase in rent. Landlords cannot normally increase the rent more than once a year without the tenant's agreement.

Landlords can only increase the rent of a fixed-term tenancy if the tenant agrees. If they do not agree, it can only be increased when the fixed-term ends.

If the tenancy is a regulated tenancy, you must consider any fair rent conditions. Read 'Fair rent and regulated tenancies - private renting' for more information on regulated tenancies and fair rent.

For any tenancy, landlords must get their tenant's permission to increase the rent by more than had been previously agreed.

How a landlord can propose a rent increase

You can use a form called a 'Landlord's notice proposing a new rent' to tell your tenant about proposed rent increases. Make sure you get the right version of this form for your type of tenancy agreement from a law stationer.

You must tell your tenant one month before you propose to increase the rent. If they agree, the new rent begins from the date in the notice.

If your tenant does not agree, they can apply to a rent assessment committee who will then decide the rent amount.

How to change a tenancy agreement

Before you rent your property, you should include any rent conditions in a tenancy agreement. This is a legal document that contains all the rules the landlord and tenant must follow. You should always have a written tenancy agreement to avoid any future disputes.

Read 'Types of tenancies - private renting' for more information on the type of tenancy you may have.

Changing the tenancy agreement

You may want to change certain terms in the tenancy agreement - for example, allowing your tenant to have pets in the property. As a tenant, you may want to change your tenancy to include another member of the household.

You cannot change the terms of a tenancy agreement unless you both agree to the changes. Whether a landlord or a tenant, you should check that any changes to the terms are written into the tenancy agreement.

When your landlord must change the agreement

Your landlord must change any term in the agreement if it may discriminate against you on grounds of sex, disability, religion or sexuality. For example, if you need a guide dog in the house and there is a term against pets, your landlord should change this term to allow guide dogs in the property.

Letting out other rooms in your rented property – 'Subletting'

As a tenant, in some circumstances, you may be able to let one of the rooms in the property you are renting to somebody else - this is called subletting.

Permission to sublet should be included in the tenancy agreement before you move in. If it isn't, you should get permission from your landlord before anyone else moves in. This should be written into the tenancy agreement, to avoid any disputes later.

What happens when a tenant dies before their tenancy ends?

Your tenancy may be passed on to another member of your family if you die, depending on which type of tenancy you have.

If the tenancy is a joint tenancy, the remaining joint tenant or tenants have an automatic right to stay in the property for the rest of the tenancy.

If you are the only tenant, rights to the tenancy depend on which tenancy type you have:

  • if it is a tenancy for a set period of six months or more (fixed-term) and is still valid, it will be passed on to the person named in your will
  • if the tenancy is rolling (periodic), it will automatically pass to your husband or wife

If you die while in a rolling tenancy agreement and the people left in the property have no rights to your tenancy, your landlord can recover the house. The landlord must start possession proceedings within a year of your death in order to get the property back.

Your landlord has an automatic right to get the property back if the tenancy is a shorthold tenancy. They can only do this at the end of the tenancy and must give two months' notice that they want the property back.

Additional links

Simpler, Clearer, Faster

Try GOV.UK now

From 17 October, GOV.UK will be the best place to find government services and information

Access keys