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Rising costs for landlords—mortgage rates, repairs, insurance—often prompt a review of rental income. But increasing rent is not a casual process. With the Renters' Rights Act 2025 coming into force on 1st May 2026, both landlords and tenants need to understand the new landscape.

The "Fair Market Rate" Rule

There’s no legal cap on rent increases in England, but the law requires that any increase is fair and realistic.

"Fair" means the new rent should match what similar properties in your area are actually renting for. If you propose a jump far above local rates, tenants can challenge it at tribunal—and often succeed.

Relevant scenario:

If a landlord tries to raise rent from £1,000 to £2,000 but similar flats are £1,100, a tribunal will likely set the rent closer to the local average.

The Section 13 Notice: The Official Method

For most periodic tenancies, the only lawful way to increase rent without a new contract is via a Section 13 notice (Form 4).

Frequency: Only one increase every 12 months.

Notice Period: At least one month’s notice (soon to be two months under the new Act).

Agreement: Signing a new fixed-term contract at a higher rent counts as agreement.

Common mistake:

Informal requests for more rent (texts, calls) are not legally binding. If the tenant refuses, you cannot evict for arrears based on an informal hike.

Major Changes: Renters' Rights Act 2025

From 1st May 2026, the Act brings key changes:

No More Rent Review Clauses: Automatic increases in tenancy agreements are banned. Every increase must use the Section 13 process.

Two Months' Notice: The notice period for rent increases rises to two months, giving tenants more time to plan.

No Backdating: If a tenant challenges an increase, the new rent starts from the Tribunal’s decision date—not the landlord’s proposed date.

Relevant scenario:

A landlord serves notice in June, but the tenant challenges it. If the Tribunal rules in September, the new rent starts from September, not June.

Common Mistakes Landlords Make

Using informal methods to request increases.

Serving invalid notices (wrong form, incorrect dates).

Trying to increase rent more than once a year.

Top Tips for Landlords and Tenants

Landlords: Gather three comparable listings to justify your increase.

Tenants: If you can’t afford the increase, discuss options with your landlord before considering a tribunal.

Use the Right Form: Always download the latest Form 4 from GOV.UK.

Conclusion

Rent increases are part of the property market, but must be handled with care. Stick to the 12-month rule, provide proper notice, and ensure the price reflects the local market. With the Renters' Rights Act 2025, both parties have clearer protections and procedures.

Disclaimer: This article is general information. It's not legal, financial or tax advice.