Renters Rights Act Rent Increases: The New Rules on When and How Landlords Can Raise Rent

How Rent Increases Work Under the Renters Rights Act 2025

The Renters Rights Act 2025 introduced a single mandatory process for all rent increases in the private rented sector in England. From 1 May 2026, a landlord can only increase the rent on an assured periodic tenancy once every 12 months, and only by serving a Section 13 notice under the Housing Act 1988. Any other method of increasing rent, whether through a rent review clause in the tenancy agreement, a mutual agreement without following the Section 13 process, or any other mechanism, is void. The Section 13 process is now the only lawful route to a rent increase, without exception.

This represents a significant restriction for landlords who previously used rent review clauses to increase rent annually or who increased rent by mutual agreement without formal notice. Both practices are now prohibited. The Section 13 process was already available before the Act but was one of several options. It is now the only option.

What Is a Section 13 Notice and How Does It Work?

A Section 13 notice is the formal mechanism under Section 13 of the Housing Act 1988 by which a landlord proposes a new rent for an assured periodic tenancy. Form 4 is the prescribed form for Section 13 notices and is available from GOV.UK. Using an outdated form or failing to complete the form correctly invalidates the notice and means no increase can take effect.

The notice must state the proposed new rent and the date from which it is to take effect. The effective date must satisfy two conditions: it must be at least 2 months after the date the notice is served on the tenant, and it must be the first day of a period of the tenancy. For a monthly tenancy where rent is due on the first of each month, the effective date must be the first day of a month that is at least 2 months after the notice is served.

A landlord cannot serve a Section 13 notice within the first 12 months of the tenancy. For tenancies that converted from fixed-term to periodic on 1 May 2026, the 12-month period is measured from the start of the original fixed-term tenancy, not from the conversion date. A landlord cannot serve a new Section 13 notice within 12 months of the date on which the last rent increase took effect.

Void Rent Review Clauses

Many tenancy agreements signed before 1 May 2026 contained rent review clauses, for example a clause stating that rent would increase annually in line with the Consumer Prices Index or by a fixed percentage. From 1 May 2026, such clauses are void for the purpose of increasing rent on an assured periodic tenancy. A landlord who attempts to rely on a rent review clause to collect a higher rent without serving a Section 13 notice is collecting rent to which they are not legally entitled.

This applies to clauses in existing tenancy agreements as well as new ones. A clause that was valid when the agreement was signed becomes void with effect from 1 May 2026 to the extent that it purports to increase rent other than through Section 13. Tenants should check whether any rent increase they have been paying since May 2026 was notified via a Section 13 notice. If not, the increase may be legally unenforceable.

Challenging a Rent Increase at the First-Tier Tribunal

A tenant who considers the proposed new rent above the open market rate for the property can apply to the First-tier Tribunal (Property Chamber) to determine the correct market rent. The application must be made before the effective date stated in the Section 13 notice. Once an application is made, the proposed rent increase is suspended and cannot take effect until the tribunal has determined the market rent.

The tribunal assesses what rent a new tenant would pay for the property let on the open market on the terms of the existing tenancy. It is not constrained by the landlord proposed figure from below, but it is capped at the landlord proposed figure from above. Under the Renters Rights Act 2025, the tribunal cannot set a rent higher than the landlord originally proposed. This change, which did not apply before the Act, removes the risk that previously deterred some tenants from challenging increases, namely that the tribunal might set an even higher rent than the landlord asked for.

The new rent determined by the tribunal takes effect from the date of the tribunal determination, not backdated to the effective date originally stated in the Section 13 notice. This is another change introduced by the Renters Rights Act 2025. Under the old rules, the tribunal could backdate a rent increase to the proposed effective date, creating a debt for the period between the effective date and the determination. This risk has been eliminated.

In cases of undue hardship, the tribunal has the power under the Act to defer the implementation of a rent increase by up to a further 2 months after the determination date. This gives tenants facing genuine financial difficulty a modest additional buffer.

How to Apply to the First-Tier Tribunal

Applications to challenge a Section 13 notice are made to the First-tier Tribunal (Property Chamber). The application can be made online or by post. There is an application fee of 100 pounds for rent assessments, which may be remitted in cases of financial hardship. The tenant does not need a solicitor to bring the application, though advice from Shelter or a housing law centre can help prepare the case.

The tribunal will typically ask both parties to provide evidence of comparable rents for similar properties in the area. This can include estate agent listings, Zoopla or Rightmove data, or evidence from a local letting agent. The landlord will set out why they consider their proposed rent is the market rate. The tribunal makes its own assessment of the evidence and determines the figure.

Tenants should act promptly once they receive a Section 13 notice. The application must be made before the effective date. A tenant who fails to apply in time loses the right to challenge and the new rent takes effect automatically on the effective date.

Rent Bidding Wars Banned

The Renters Rights Act 2025 prohibits landlords and letting agents from inviting or accepting offers above the advertised asking rent when marketing a property. A landlord must publish a fixed asking rent and cannot solicit or accept bids above that figure. This targets the practice in high-demand areas where prospective tenants were pressured to offer above asking in competitive markets, pricing out those on lower incomes or without savings to make inflated offers.

A landlord or agent who accepts an above-asking rent offer commits a civil offence. The tenant who paid the inflated amount can apply to the local authority for a refund of the excess. The landlord also risks a civil penalty from the local housing authority of up to 7,000 pounds for a first offence.

Rent Increases for Housing Benefit and Universal Credit Tenants

The Section 13 process applies equally to tenancies where rent is paid in full or in part through housing benefit or the housing cost element of Universal Credit. Local Housing Allowance rates, which cap the amount payable for a given property size and location, are set by the Valuation Office Agency. Where a Section 13 notice proposes a rent increase that takes the rent above the applicable Local Housing Allowance rate, the tenant will face a shortfall between the rent and their benefit entitlement.

Tenants in this position should apply to the tribunal if the proposed rent exceeds the market rate, since the tribunal will assess market rent independently and may set a lower figure. They should also contact their local authority housing team and benefits adviser to understand whether any discretionary housing payments or other support is available to bridge the gap.

Rent Increases and Universal Credit

Where a tenant receives the housing cost element of Universal Credit, rent increases processed through the Section 13 mechanism are notified to the Department for Work and Pensions once the new rent takes effect. The DWP will reassess the housing cost element payable based on the new rent and the applicable Local Housing Allowance rate for the area and property size. Where the new rent exceeds the Local Housing Allowance rate, the tenant will face a shortfall. Tenants in this position should contact their work coach or the Universal Credit helpline to understand the impact on their payment and should consider whether to challenge the proposed increase at the First-tier Tribunal if the rent appears above market rate.

Landlords with tenants on Universal Credit should be aware that rent increases above the Local Housing Allowance rate increase the risk of the tenant falling into arrears, particularly in the months between the increase taking effect and the DWP reassessment completing. Building in a slightly longer run-up to the increase effective date, beyond the 2-month minimum, can reduce this risk.

Rent Increases for Existing Tenancies That Converted in May 2026

For tenancies that were in a fixed term when they converted to periodic on 1 May 2026, the 12-month restriction on serving a Section 13 notice is measured from the start of the original tenancy, not from the conversion date. A landlord whose tenant started a 12-month fixed term on 1 August 2025 and converted to periodic on 1 May 2026 can serve a Section 13 notice from 1 August 2026, which is 12 months after the tenancy started.

If a rent increase was already in progress under a rent review clause at the conversion date, the position depends on whether the new rent had already taken effect. If the rent review clause had already operated and a new rent was being paid, that new rent is the current rent from which the 12-month clock for the next Section 13 runs. If the review clause had not yet operated, it became void on 1 May 2026 and the landlord must use Section 13 for any future increase.

Documenting Rent Increase Compliance

Landlords should maintain a file for each tenancy recording every Section 13 notice issued, the date it was served on the tenant, the proposed new rent, the effective date, and whether the tenant raised a tribunal challenge. This documentation is important for two reasons. First, it demonstrates compliance with the once-per-12-months rule if a landlord faces enforcement action. Second, it provides the evidence base if a Ground 8 rent arrears claim depends on establishing what the correct rent was at any given date, which may require showing the sequence of Section 13 notices and their effective dates.

Frequently Asked Questions

How often can a landlord increase rent under the Renters Rights Act?

Once every 12 months. The landlord cannot serve a Section 13 notice within the first 12 months of the tenancy and cannot serve a new notice within 12 months of the last increase taking effect.

How much notice must a landlord give for a rent increase?

At least 2 months written notice using Form 4 (Section 13 notice) from GOV.UK. The effective date must be the first day of a rent period, at least 2 months after the notice is served.

My tenancy agreement has a rent review clause. Can my landlord use it?

No. Rent review clauses are void for the purpose of increasing rent on an assured periodic tenancy from 1 May 2026. The only permitted mechanism is a Section 13 notice.

Can the tribunal set a rent higher than my landlord asked for?

No. Under the Renters Rights Act 2025, the tribunal cannot set a rent higher than the landlord originally proposed in the Section 13 notice. It can set the same figure or a lower figure.

When must I apply to the tribunal to challenge a rent increase?

Before the effective date stated in the Section 13 notice. If you miss this deadline, the increase takes effect automatically and cannot be challenged retrospectively.