First question- renewal: there is no obligation for landlord to renew the tenancy agreement,period. You can only ask nicely.
Second question- rent increase: the following info may be a little wordy, more like an essey
but if you want to know, there it goes: (the folowing is also being prepared as a sticky, so any comments will be welcomed):
Rent increases
Whether the landlord has a right to increase the rent of an assured or assured shorthold tenant depends on whether the tenancy is fixed term or periodic. A fixed term tenancy is one where the tenancy agreement (either written or verbal) states that it will run for a specified period, for example, six months or a year. A periodic tenancy runs for an indefinite time, on the basis of its rent period. The rent period is the interval at which the tenant pays rent, for example, weekly or monthly.
Rent increases for fixed term tenancies
Rent cannot be increased during the fixed term of an assured or assured shorthold tenancy unless:-
the tenancy agreement allows for rent increases; or
the tenant agrees to a rent increase.
If a fixed term tenancy is renewed and a new fixed term is created, the rent will again be that agreed between the landlord and the tenant. A landlord may therefore ask an existing tenant to sign a new tenancy agreement, so that s/he can charge a higher rent.
T
enancy agreement covers rent increases
You must check the tenancy agreement (either written or verbal) to see what it says, if anything, about rent increases and notices of increases. This may be referred to as the landlord's right to vary the rent. A clause in the agreement which allows for changes in the rent is known as a rent review clause.
If the agreement contains a term that allows the landlord to increase the rent, the term must be clear enough for the tenant to be able to determine what the increase should be, for example, it should specify a certain amount or give a formula showing how the increase will be calculated. If this is the case, the tenant will have to pay whatever increase the landlord decides to charge, whenever the agreement says the rent can be increased, as long as:-
the landlord complies with the term (or terms) in the agreement; and
the terms in the agreement are contractually enforceable*.
If the tenancy agreement allows the landlord to vary the rent, the tenant will not have the right to apply to a Rent Assessment Committee to challenge a rent increase.
*A term may not be enforceable in court if it is unfair or unreasonable, for example, a term stating that the landlord had the right to increase the rent 'from time to time', without specifying what that meant.
If the agreement allows the landlord to increase the rent, it should contain information about the notice the landlord must give and how the increase is to be made, for example, by using the retail price index.
A landlord can increase the rent by:-
1)specifying in the agreement the intervals at which the rent is to be increased, for example, every twelve months after the beginning of the tenancy. If this is the case, no further notice is necessary; or
giving the tenant notice of an increase, to take effect after a specified period of time; or
2)a combination of these. For example, the agreement says that the landlord can increase the rent annually, but s/he must give the tenant one month's notice of the proposed increase.
If the landlord has increased the rent in accordance with the terms in the agreement, the tenant will have to pay the increase. If s/he does not pay the increased rent, the landlord will be able to start proceedings against her/him for rent arrears.
In one case, a rent review clause allowed the rent to be increased to a level the tenant could not possibly have paid. The Court of Appeal decided that the clause was really a device to force the tenant to accrue arrears, allowing the landlord then to claim possession. The Court decided that this clause was unenforceable as a rent review clause (Bankway Properties Ltd v Penfold-Dunsford and Another, CA, April 2001).
If the landlord has not increased the rent in accordance with the terms of the agreement, the tenant will not be contractually bound to pay the increase asked for. If the tenant has not paid the increase, you should be advised to put money aside to cover the proposed increase s/he is withholding, as a precaution.
Landlord uses a statutory procedure to increase the rent
There are two statutory procedures available to the landlord of an assured or assured shorthold tenant to increase the rent. The landlord can use:-
1)section 13 of the Housing Act 1988; and/or
2)section 6 of the Housing Act 1988.
When to use section 13 of the Housing Act 1988
The landlord can use the procedure under section 13 of the Housing Act 1988 to increase the rent for any periodic tenancy.
The section 13 procedure cannot be used if there is a rent review clause in the tenancy agreement.
The section 13 procedure is normally used in relation to assured tenancies. Because of their limited security, assured shorthold tenants often have little choice but to accept a proposed increase.
How to use section 13 of the Housing Act 1988
The landlord must give the tenant a 'Landlord's Notice Proposing a New Rent Under an Assured Periodic Tenancy or Agricultural Occupancy'. The notice must include the existing rent the tenant is paying and the new proposed rent.
The section 13 notice must also state the date from which the proposed increase is payable. The rules governing the notice period are as follows:-
1)if the tenant pays rent at intervals of less than a month or monthly, the notice period is one month
2)if the tenant pays rent at any other interval, the notice period must be the same. For example, if the tenant pays rent quarterly the notice period must be one quarter
3)if the tenant has a yearly periodic tenancy, the notice period must be six months.
The notice period must end on the first day of the period, for example, week or month, on which the new rent is due.
Under the section 13 procedure, from 10 February 2003, the first date from which the rent can be increased will be either:-
1)a date at least 52 weeks from the date on which the tenancy started; or
2)if the tenant's rent has been increased before 10 February 2003, a date at least 52 weeks from the date of the most recent increase.
Following the first rent increase (see above), subsequent increases can usually take place at intervals of not less than 52 weeks (provided the landlord properly serves notice each time).
To take account of the rent increase rules above, a landlord might choose to increase the rent on the same day each year, for example, the first Monday in April.
The rules about rent increases under section 13 are complicated. It might be necessary to refer a tenant who has received a rent increase notice to a specialist adviser.
A dispute about the validity of a section 13 notice will normally be heard by a Rent Assessment Committee (RAC) - see below.
Appealing against a section 13 increase
If the tenant thinks the increase is too high and does not want to accept it, s/he has the right to appeal to a RAC. S/he must ensure this reaches the RAC before the section 13 notice expires, using the statutory form called 'Application Referring a Notice Proposing a New Rent Under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee'. This is available from a legal stationer or the local RAC office.
The tenant cannot refer the proposed increase to the RAC if s/he has already agreed to pay it.
A tenant can only refer a rent increase to the RAC, and not a service charge increase, unless the service charge is included in the rent payment.
The landlord does not increase the rent correctly
If the landlord does not follow one of the correct procedures to increase the rent, strictly speaking the new rent is not valid. The tenant is therefore entitled to continue to pay the old rent. Rent arrears count as a ground for possession only if the increase was lawful. It is important to bear in mind, however, that assured shorthold tenants have little security of tenure, and, in practice, antagonising the landlord may lead her/him to start possession proceedings.
If the tenant starts to pay the increased rent, s/he will have agreed to the increase. The increased rent will then be lawful.
A dispute about whether an increase is valid can be heard by the county court.
A dispute about the validity of notices under section 13 or section 6 of the Housing Act will normally be heard by a RAC.
AST - end of term, rights for renewal???? 
Re: AST - end of term, rights for renewal???? 
