Lease Addendum Rent Increase Template for England and Wales

A Lease Addendum for Rent Increase is a written agreement signed by both landlord and tenant that records a consensual change to the rent. A Section 13 notice is a unilateral mechanism a landlord uses to propose a rent increase without the tenant's prior agreement. An addendum is appropriate where both parties have negotiated and agreed the new rent; a Section 13 notice is used when agreement cannot be reached first.

Under the Renters' Rights Act 2025, landlords in England may only increase rent once per 12-month period. A proposed increase must be served using the prescribed Section 13 notice with at least two months' notice. Outside the statutory procedure, a tenant's written agreement to a higher rent via a signed addendum is also valid, but cannot be used to impose more than one increase per year.

Where a tenant freely and genuinely agreed to the increase in a signed addendum, challenge is more difficult, but not impossible. If the tenant can demonstrate that they were under duress or did not understand what they were signing, the agreement may be challenged. Tenants who believe a proposed increase (whether by notice or addendum) exceeds the market rent can still apply to the First-tier Tribunal for a determination.

It should state the property address, the parties' names, the current rent, the new rent, the date from which the increase applies, and the date the addendum is signed. Both parties should sign and retain a copy. Including a clear statement that all other terms of the original lease remain unchanged avoids any suggestion that the addendum has unintentionally varied other terms.

Commercial leases typically include formal rent review clauses, often at five-year intervals, with the new rent determined by reference to open market rental value or an index such as the Retail Prices Index. Where parties negotiate a rent change outside the review cycle, they record it in a deed of variation or addendum. The Landlord and Tenant Act 1954 governs rent at lease renewal rather than mid-term reviews.

Yes, a signed addendum is generally enforceable without either party having taken independent legal advice, provided both parties genuinely consented and the terms are clear. However, where the increase is very substantial or the tenant is in a vulnerable position, evidence of independent advice strengthens the addendum's enforceability. Tenants should not feel pressured into signing without time to consider the terms.

No. Under the Tenant Fees Act 2019, charging a residential tenant any fee for amending or varying a tenancy agreement is a prohibited payment. This includes administration charges for preparing a rent increase addendum. A landlord who charges such a fee must repay it and may face a financial penalty. The prohibition applies to all residential tenancies in England and Wales.

If a tenant refuses to sign an addendum, the landlord cannot increase the rent by that route. For periodic tenancies, the landlord must instead serve a valid Section 13 notice under the Housing Act 1988. If the tenant considers the proposed increase unreasonable, they may refer it to the First-tier Tribunal within the statutory period. The current rent continues to apply until the new rent is agreed or determined.