Tom Entwistle

The article was updated 11 June 2026 in light of the Renters’ Rights Act

With increasing costs, CPI inflation on the increase again and mortgage rates approaching 6 per cent, there's lots of talk about increasing rents.

Under the new Renters’ Rights Act rules increasing the rent must follow a specific statutory process using a Section 13 notice. This article aims to outlie the process.

To increase or not to increase?

Many landlords are unable to absorb the extra costs without going into losses, so for them there's little choice, they must pass on some of those costs. Those landlords with deeper pockets, or those with little or no mortgage repayments to make, can perhaps absorb some of the extra costs and leave the rent as it is, though this is not always the best choice.

This article refers to English law. It is not a definitive interpretation of the law. Every case is different; rules change over time and only a court can decide -always seek expert advice before acting or not.

Two schools of thought

The choice as to whether to increase rents or not during a tenancy comes down to a landlord's preference:

(1) landlords are often nervous about losing a good tenant if they put the rent up, and some leave the rent fixed for long periods. But with rent inflation high that no longer seems a good idea. Tenants detest a big jump in rent if it falls too far behind a market rent and even though they may have the advantage of a low rent for years, they will always blame the landlord for a big increase.

(2) Some landlords prefer to apply for a small annual increase. This is more rational, something tenants will more readily accept and even expect. They get used to an annual increase along with all their other rising costs, and so long as this is not extortionate, it will rarely trigger a move.

To some extent the new Renters’ Rights Act (RRA) actively encourages annual increases as the mechanism for increases is technically built-in – see below.

The Act changes everything

The RRA abolished fixed-term Assured Shorthold Tenancies (ASTs) from 1 May 2026 and replaced them with Assured Periodic Tenancies (APTs). As fixed terms no longer exist, any clause in a tenancy agreement written to operate a rent increase within a fixed term agreement is no longer legal.

This catches out all those landlords with well-drafted agreements designed to review rents on a regular basis, either as a rent review or linked to CPI. A clause saying “the rent shall increase by CPI on each anniversary of the tenancy” or “the rent may be reviewed to a fair open market rate every 12 months’ anniversary” is no longer valid. 

Even if both parties are content with such an arrangement, acting on it without further process will not constitute a valid rent increase. The government’s stated policy is simple: there must be a standard process that tenants can understand and, where they believe it appropriate, challenge it.

Social housing is largely outside these rules for Assured Periodic Tenancies, where the landlord is a registered provider. They are treated differently, whereas private landlords have no such exception.

Increasing the rent

If you decide to increase your rent, first determine the demand for rentals in your location. High demand for properties in an area means it is safer to go for a higher rent without the fear of losing a good tenant. Secondly, try to decide what is a fair increase in line with the open market rent in the area. 

If your rents have fallen a long way behind the market level it may be prudent to increase by a smaller amount each year, rather than trying to catch up all in one go.

A fair open market rent is defined as the maximum rent for a new letting a willing landlord could realistically expect to achieve from a willing tenant in an arm's length transaction, assuming neither party is under unusual pressure. 

The rent increase rules

There are certain rules and procedures a landlord or their letting agent must follow under the RRA when increasing the rent. Section 13 of The Housing Act 1988 as amended provides the legal framework for when and how to increase rent.

As I see it there are three logical stages you need to go through to progress this:

1 – You should first establish what a fair open market rent is. Speak to local agents and keep an eye on advertisements for similar properties in the area, online and in the local press. Try to pitch your rent level at or just below what would be considered a fair market rent.

It’s a good idea to collect evidence in case your claim is challenged. For example, a local agent’s valuation letter and copies of published ads for similar local properties.

When advertising a new tenancy, under the new RRA any rent level advertised or mentioned to the tenant cannot be renegotiated later unless you agree to lower it – that’s it; you must stand by your stated rent.

Evidence gathering

In case your rent claim is challenged, it’s important to back up your claim with solid evidence. Gather and retain as much credible evidence as you can before serving a Section 13 notice. This might include:

• Comparable property listings from property portals such as Rightmove, Zoopla and OnTheMarket.com, showing current asking rents for similar properties in the same postcode or nearby. Take screenshots with dates.
• A written market appraisal letter from a local letting agent, confirming the agent’s opinion of the current market rent.
• Provide evidence of the condition of the property and any desirable features such as a new kitchen, bathroom or improved energy efficiency rating.
• Show evidence of running costs such as insurance premiums, mortgage rate changes, maintenance contracts and a ballpark yield on the rental. 

A tribunal will not set a rent based on the landlord’s costs. Its focus is on market value. But a well-organised landlord who can demonstrate they have approached the exercise professionally, expertly costed is better placed than one who cannot explain the basis for their proposed figure.

Stage (2): it’s a good idea to discuss your rent increase with your tenant to try to come to an amicable arrangement that’s acceptable to both parties. As has been said, tenants will more likely accept smaller annual increases to bring it to market levels rather than having a large jump-up after a prolonged period on the same rent, all the time falling well behind the going rate.

Taking this approach should suit landlords too, as to some extent the Act is now backing (at lease giving an excuse) for landlords keeping rent levels in line with market rates.

By personal negotiation is the best method. You can explain to your tenant the rising costs involved, your own circumstances as a landlord and the comparable market rents in the area. 

Many landlords face their tenants with a fait accompli. They tell them this is the new rent, and that's it. That’s by no means the best approach, though some tenants will simply accept this at face value, without realising they could negotiate. 

Remember, simply agreeing a new rent, under the RRA rules, is not enough. You must follow through with serving the Section 13 form (4A) and giving the required 2 months’ notice period.

Using the Section 13 notice

Download and complete your form 4A. The form includes guidance on how to use it and serve it at least 2 months before you want the increase to commence – an increase from a specific rent day.

Section 13 of the Housing Act 1988 (as amended) is a statutory mechanism in the Act that enables the rent to be increased for an assured periodic tenancy. There are several specific rules to be complied with:

The section 13 notice is a prescribed form. That means the wording is critical and must comply with the Act. There is a free Form 4A notice online. When a Section 13 notice is served, the notes included explain to the tenant how the process works and it also explains to the tenant how to go about appealing the rent increase. https://www.gov.uk/courts-tribunals/first-tier-tribunal-property-chamber.

Serving the notice

You can serve the notice in person or by post or, if this method of notice service is specified in the tenancy agreement, via email. Whichever method of service you use, you should obtain proof of delivery.

If your tenant disputes the rent increase as being above the open market rent, they can challenge it at the First-tier Tribunal (FTT), asking it to decide what the new rent should be. 

The tribunal process

Tenants can apply to the tribunal, which will cost them £47, though fee waivers are available for low-income tenants. 

The tribunal cannot raise the rent higher than the amount you initially requested and any increase it does approve cannot be backdated; the approved new rent takes effect from the date of the tribunal’s decision. 

To establish your rent claim at the tribunal, you should provide evidence as outlined above. The tribunal will want to see the tenancy agreement and an inventory with photos of your property's condition.

Don’t make mistakes in the paperwork

The Section 13 process is not complicated, but the tribunals are unforgiving of procedural errors. An invalid notice because of a simple mistake means the increase does not happen, and the landlord must start again, losing valuable time already spent, and pushing back the date of any increase perhaps by months. Simple mistakes include:

• Using the wrong form - always download the latest one from the .Gov website. 
• Giving less than 2 months’ notice.
• Agreeing a rent increase informally without going through with the correct procedure.
• Not allowing at least 12 months between claims. 
• Starting the increase between a rent period rather than at the beginning of one.
• Failing to keep evidence of delivery – the tenant may claim they never received the form.

Local councils now have greater powers to investigate when landlords don’t follow the correct procedure. While enforcement may yet be patchy between councils, penalties for non-compliance are substantial.

The bigger picture

The new rules don’t constitute rent control as such, there is no cap on what a landlord can propose in a Section 13 notice, provided it reflects market value. What the Act has introduced though is a new procedural framework, an accessible challenge mechanism for tenants and a system which could potentially cause long delays.

The private rented sector (PRS) has continued to experience rent rises as this is simply a result of a general inflation and a supply and demand imbalance. There has been a steady exodus of small-scale landlords from the sector as the financial and regulatory demands have increased, leading to shortages of rental accommodation in many locations. 

For small-scale self-managing landlords adjusting rents through the new Section 21 process is not all that difficult – it simply needs attention to detail. Gone are the days of verbal agreements about increases. So should the practice of allowing rents to fall way behind market levels.

Letting agents are in a good position to add value in this process. A professional agent who can provide accurate market appraisals, manage the Section 13 process on the landlord’s behalf, and advise on timing, reduces the administrative burden on the small-scale landlord and the risk of procedural error. 

[Main image credit: RDNE Stock project]