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Since the private rented sector provisions came into force on 1 May 2026, the Renters’ Rights Act 2025 has introduced a number of important changes affecting the private rented sector. These amendments include abolishing section 21 evictions and removing all fixed-term assured tenancies. These changes, along with many others, have significantly changed the way in which landlords can increase rent.
How the Act has changed the approach to rent increases
Under the Act, landlords can no longer rely on contractual rent review provisions to increase rent. Instead, the statutory procedure as set out under section 13 of the Housing Act 1988 is the only lawful route available to landlords to increase rent during an assured tenancy. We discuss the section 13 procedure, and how landlords can ensure compliance with it, later in this article.
In addition to establishing a single procedure for rent increases, the new system also imposes certain restrictions on when landlords may increase rent. Under the Renters’ Rights Act, landlords cannot increase rent during the first year of a new tenancy. Following this, they may only increase it once every 12 months and must give at least two months’ notice before it takes effect. The 12-month period runs from the date the previous increase took effect or, if the rent has not previously been increased, from the start of the tenancy. Serving a section 13 notice too early, will result in the notice being invalid.
Despite the above restrictions, the Act does not impose a fixed cap on how much the rent can be increased. However, if the new rent exceeds the open market rent (that being, the rent that the property would likely achieve if advertised), then the landlord runs the risk of the tenant challenging the rent increase. If successfully challenged, the tribunal will set the rent at the lower of either the open market rent or the proposed rent.
How to ensure compliance with section 13
It is crucial that landlords serve the notice correctly, as any errors may result in the notice being ineffective. If the notice is invalid, the tenant will continue paying the existing rent, and the landlord must begin the process again.
The key steps landlords must take to comply with section 13 are set out below:
- Use the prescribed form – Landlords must serve the tenant with prescribed Form 4A, available on GOV.UK, setting out the new rent and the date in which it is intended to take effect. Any other means of agreeing an increase in rent, such as by email or letter, will not be binding, even if the tenant agrees to the increase. Landlords should also make sure they use the latest version of the form and complete all fields correctly.
- Notice period – Landlords must provide the tenant with at least 2 months’ notice before the proposed increase takes effect.
- Confirm that 12 months have passed – Landlords can only increase rent once in any 12-month period. Therefore, landlords should ensure that the requisite time from the previous increase, or the commencement of the tenancy, has passed.
- Serve the notice correctly – Landlords should serve the notice on all tenants, and in accordance with the terms of any tenancy agreement, as well as retaining proof of service.
- Make sure that the rent increase aligns with open-market rent – any proposed increase in rent must not be more than that which could reasonably be obtained for the property on the open-market. Setting the rent any higher than this would result in the tenant being able to successfully challenge the increase at the First-tier Tribunal, and we explore this in more detail below.
The tenants right to challenge the rent increase
If a tenant believes that the proposed rent increase is too high, they can challenge the increase by referring it to the First-tier Tribunal (FtT).
It is anticipated that most tenants will challenge rent reviews regardless as to their view on the proposed rent. It is advisable for landlords to treat every proposed rent increase as a possible tribunal case, as there are several reasons why choosing to challenge the increase would be the logical option for a tenant. These reasons are set out below:
- The fee is low for a tenant to challenge a rent increase at the FtT, at only £47.
- The tribunal cannot set the rent higher than what the landlord has already proposed. The tribunal can only approve the proposed increase, or they can even lower it.
- The old rent will continue to apply until the tribunal makes a decision.
- The tribunal has the power to delay the start date of an increase in rent by up to 2 months if it would cause the tenant to face undue hardship.
When a tenant challenges a rent increase, there are several factors which influence a tribunals decision in determining whether the rent reflects the open market.
Firstly, when providing evidence for the rent increase, tribunals give more weight to already agreed lettings, over advertised lettings or asking rents. Early data has suggested that landlords are not providing evidence of achieved rents or are not providing any evidence at all. It is vital that landlords not only put forward evidence to support the increase but put forward strong evidence.
Similarly, the location must be considered carefully, as tribunals are reluctant to give weight to comparable prices from a local area that they consider to be ‘superior’.
Another factor which heavily influences a tribunals decision is the condition of the property. There have been instances where the tribunal has reduced the market rent due to the condition of the property, including disrepair evidenced from the tenant or even an EPC rating and the age of white goods.
RICS has recommended that landlords conduct time-stamped inspection reports and have ongoing communication with tenants. It is important that landlords maintain the property and keep records such as photographs, reports and maintenance logs.
The key takeaway for landlords is to make sure that they comply with the statutory process when proposing a rent increase. They must also ensure that they can produce evidence to support the increase as well as evidence of the condition of the property to avoid any condition-based reductions.
If you would like to talk to me about any of the issues raised in this article, please email me via [email protected] or call 0161 832 3304.
