With the Renters’ Rights Bill 2024-25, the rules around rent increases have changed to offer tenants more protection and clarity. If you’re a tenant or a landlord, understanding the limits and process for raising rent is essential—especially as the cost of living and mortgage rates continue to fluctuate.

What is the Highest Percentage a Landlord Can Raise Rent?
The Renters’ Rights Bill does not set a fixed maximum percentage for rent increases across the board. Instead, it introduces new safeguards:

• Landlords can only increase rent once per year, and must give at least two months’ written notice using a statutory rent increase notice (under section 13 of the Housing Act 1988, as amended).
  
  

• Any rent increase must be reasonable and reflect the market rate for similar properties in the area.
  
  

• If a tenant believes the proposed increase is above the market rate, they have the right to challenge it at the First-tier Tribunal (Property Chamber).

The government expects most landlords to act responsibly and not impose excessive increases. However, if a landlord tries to raise the rent to an unreasonable level, tenants have a clear route to dispute it.

Can I Refuse My Landlord’s Rent Increase?
Yes, you can challenge a rent increase if you think it’s unfair or above the local market rate. Here’s how:

• If you receive a rent increase notice, you can apply to the First-tier Tribunal before the new rent takes effect.

• The Tribunal will assess whether the proposed rent is in line with similar properties in your area.

• If the Tribunal finds the increase is too high, it can set a lower, fair rent.

It’s important to act quickly—once the notice is served, you have a limited time to make your application. If you do nothing, the new rent will usually apply from the date stated in the notice.

Is 5% a Fair Rent Increase?
Whether a 5% rent increase is fair depends on the local market and the condition of the property. The Bill does not define a “fair” percentage, but the Tribunal will look at:

• Comparable rents for similar properties in your area

• The property’s condition and any improvements made

• Local demand and supply

If rents in your area have risen by 5% and your property is in good condition, a 5% increase may be considered fair. However, if the local market is flat or the property has issues, the Tribunal may decide a lower increase is appropriate.

Conclusion
The Renters’ Rights Bill gives tenants more power to challenge unfair rent increases and ensures landlords follow a clear, transparent process. If you’re facing a rent hike, check local market rates and don’t hesitate to challenge anything that feels excessive. For landlords, it’s wise to keep increases reasonable and well-documented to avoid disputes.

If you’re unsure about your rights or next steps, Caira is here to help you navigate the new rules with confidence.