I have tenants with a short term assured tenancy agreement via a letting agent due to expire on 24th April. They currently pay £350 per month and the average market rate is between £400 AND £450 FOR SImilar properties in the area. I wish to increase the rent by £20 per month at the beginning of a new agreement and subsequently another £20 if they wish to stay in the property at the end of another 12 months. I only wish to achieve a reasonable market rent not to keep putting up the rent indefinately.
My agent says I am not allowed to increase the rent by more that 5% over the total tenancy period. Is this true?