The New Rules on Rent Increases
For landlords, rent increases aren’t about greed, they’re often about survival. Under the Renters’ Rights Act, landlords lose flexibility on rent increases. One rise per year, two months’ notice, and tenant challenges at tribunal mean more red tape and slower income growth. Here’s how to stay on top of the rules - and protect your returns...
For most landlords, keeping rents aligned with the market isn’t about squeezing as much as possible from the tenant, it's about protecting their investment. Mortgages, maintenance, insurance and compliance costs climb every year, and if rent falls behind, profit margins vanish. Regular, fair increases are key to keeping your investment sustainable.
The Renters’ Rights Act is set to transform how landlords in England can increase rents. While the aim is to create greater security and fairness for tenants, the changes will also bring new limits and procedures for landlords. Understanding these shifts now will help you plan ahead and avoid disputes later.
🔵 The Current Rent Increase Process
At present, the rules are relatively flexible:
🔸 During a fixed-term tenancy, rent can only rise if there’s a rent review clause or by mutual agreement.
🔸 In a periodic tenancy (rolling monthly or weekly), landlords can use Section 13 of the Housing Act 1988 to propose a new rent.
🔸 Tenants may challenge any increase they feel is unfair through a tribunal.
🔸 One month’s notice is required for monthly or weekly tenancies.
🔵 The Revised Rent Increase Process and Key Changes
Here’s what landlords need to prepare for once the Bill becomes law:
All tenancies become periodic
Fixed-term assured shorthold tenancies will be abolished. From the Bill’s commencement date, every tenancy will automatically run on a rolling basis.
No more rent review clauses
Clauses in tenancy agreements that allow automatic rent reviews will be banned. Landlords will need to follow the formal statutory process instead.
One rent increase per year
Landlords will only be permitted to raise the rent once every 12 months, removing the flexibility to adjust multiple times within a year.
Longer notice periods
Landlords must give tenants a minimum of two months’ notice before a rent increase takes effect (currently one month for monthly or weekly tenancies).
Rent increases MUST follow Section 13 process
Any increase must be served using the government’s prescribed Section 13 notice form. This will be the only lawful way to impose an increase if an agreement isn’t reached with the tenant.
Tenants’ right to challenge increases
Tenants can refer the proposed increase to the First-Tier Tribunal if they believe it is above market rent. The Tribunal will decide a fair level based on comparable local evidence.
Timing of new rents
The Bill sets clearer rules for when the new rent can begin, and ensures tenants have the right to continue paying the existing rent until the proper process is completed.
🔵 What This Means for Landlords
🔹 Less flexibility, more planning – You’ll need to plan further ahead since increases can only happen once per year with two months’ notice.
🔹 Documentation matters – Using the correct Section 13 form will be crucial, as mistakes could invalidate your notice.
🔹 Stronger tenant rights – Expect more challenges at tribunal, making it essential to evidence your rent proposals with solid local comparables.
🔹 Budgeting impact – With fewer opportunities to adjust rent, landlords may feel more exposed to rising costs like maintenance, insurance, or tax changes.
🔵 What Landlords can do to Protect their Income
Get your timing right
Map rent reviews around anniversaries of tenancy start dates and ensure notices are served at least two months in advance. If you manage multiple units, keep a rent-review calendar so opportunities aren’t missed.
Evidence your increase
Tribunals judge “market rent,” not landlord costs. Back up your notice with:
◆ Recent Rightmove/Zoopla comparables for similar properties.
◆ Local rent indices from ONS or regional data.
◆ A clear record of property improvements that justify the uplift.
This strengthens your hand if a tenant challenges.
Consider smaller, regular adjustments
Rather than big step-jumps that attract disputes, opt for modest annual increases that keep pace with the market. These are less likely to be challenged and easier for tenants to absorb.
Use rent guarantee insurance as a backstop
Even with fair increases, arrears risk grows when rents rise. Rent Guarantee Insurance (RGI) covers you if tenants fall behind after an increase. It can also provide legal expenses and income protection while any dispute drags on.
Screen tenants for affordability
Stricter rent-increase rules mean you need tenants who can comfortably absorb rises over time. Verify income carefully, and consider guarantors.
Communicate early
Give tenants a heads-up conversation before serving notice. Explain the rationale; market trends, rising costs, or property improvements. This can reduce the chance of a tribunal challenge.
🔵 Final Word
The Renters’ Rights Act will make rent increases more structured, less frequent, and more open to challenge. While the changes reduce landlord flexibility, they also provide clarity and consistency. By preparing early and keeping good records, you can ensure that your rental income keeps pace with the market while staying compliant with the new rules.
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