Rent Increases Under the Renters' Rights Act 2025

How rent increases worked before the Renters' Rights Act

Before the Renters' Rights Act, landlords could increase rent using contractual rent review clauses in fixed-term agreements, by agreeing a new rent at renewal, or using the Section 13 process for periodic tenancies. The new Act removes the first two options and makes Section 13 the only permitted method.

Under the pre-RRA regime, there were three common methods for increasing rent:

1. Contractual rent review clauses

A fixed-term tenancy agreement could include a clause specifying how rent would change during the term — for example, annual increases in line with CPI, or a specific percentage increase on the anniversary date. These clauses were enforceable and did not require a Section 13 notice.

2. New fixed-term renewal

When a fixed-term tenancy expired, the landlord and tenant could agree a new rent for the next fixed term. This effectively reset the rent at the market rate through negotiation, without any formal notice process.

3. Section 13 notice for periodic tenancies

For tenancies already on a periodic basis, landlords used the Section 13 process: serve Form 4 proposing a new rent, wait 1 month (for monthly tenancies), and the new rent takes effect unless the tenant challenged it at tribunal.

From 1 May 2026, options 1 and 2 are no longer available. Fixed terms are abolished, so there are no renewals and no fixed-term clauses. All rent increases must follow Section 13.

How Section 13 works under the Renters' Rights Act

Section 13 of the Housing Act 1988 (as modified by the Renters' Rights Act 2025) allows landlords to propose a new rent for a periodic tenancy by serving a prescribed notice (Form 4) at least 2 months before the proposed increase date. The notice can be served no more than once every 12 months.

Step-by-step: how to increase rent under Section 13

1. Check the 12-month rule. You can only serve a Section 13 notice if at least 12 months have passed since the tenancy began or since the last rent increase took effect. If you increased rent in August 2025, you cannot increase it again until August 2026 at the earliest.
2. Complete Form 4. Download the current version of Form 4 (Landlord's notice proposing a new rent) from gov.uk. Complete it fully: property address, current rent, proposed new rent, proposed effective date, and all required signatures.
3. Serve the notice at least 2 months before the effective date. The notice must be received by the tenant at least 2 months before the date on which the new rent is proposed to take effect. For monthly tenancies, the effective date must fall on the first day of a new rental period.
4. Give the tenant time to respond. After receiving Form 4, the tenant has until the effective date to refer the matter to the First-tier Tribunal if they wish to challenge the proposed rent. If they do not refer it, the new rent takes effect automatically on the date specified.
5. If no challenge, collect the new rent from the effective date. Update your records and rent ledger. Keep a copy of the served Form 4 and evidence of service.

The notice requirements in detail

For a Section 13 notice to be valid, it must:

• Use Form 4 — the prescribed form under the Housing Act 1988 (as amended). Using a non-prescribed form is ineffective.
• Specify the address of the property
• State the existing rent
• Propose a new rent figure (not a percentage increase — a specific pound amount)
• Specify the date from which the new rent is proposed to take effect — this must be at least 2 months from service and must fall on the first day of a new rental period
• Be served on the tenant at the property or their last known address
• Not be served within 12 months of the tenancy start date or the last rent increase

What "first day of a new rental period" means

For a monthly tenancy where rent is paid on the 1st of each month, the effective date of the rent increase must be the 1st of a month. If the tenancy started on the 15th of a month and rent is due on the 15th, the effective date must be the 15th of a month. Serve the notice at least 2 months before that date.

Example: your tenant pays rent on the 1st of each month. You want to increase rent from 1 July 2026. You must serve Form 4 no later than 1 May 2026 (2 months before).

How much can you increase rent?

There is no statutory cap on the amount of a Section 13 rent increase. You can propose any new rent figure. However, the tenant has the right to challenge the proposed rent at the First-tier Tribunal, which will set the rent at market rate — no more and no less.

The Renters' Rights Act 2025 does not introduce rent controls or index-linked caps. Unlike Scotland, which introduced rent caps for existing tenancies, England operates a market rate system: you can propose any rent, but it will be tested against market evidence if challenged.

What happens in practice

Most rent increases will not be challenged. If a landlord proposes a modest, evidence-based increase in line with local market rents, most tenants will accept it without referral to the tribunal. Challenges are more likely when:

• The proposed increase is substantially above local market comparables
• The tenant knows their current rent is already at or above market rate
• The tenant has legal support or is advised by a housing charity
• The property has issues (disrepair, etc.) that affect its market value

Guidance on setting a defensible increase

To propose a rent increase that is unlikely to be successfully challenged:

• Research current asking rents for similar properties in the area on Rightmove and Zoopla
• Note the size (bedrooms), condition, and facilities of comparable lets
• Keep a record of your research in case you need to defend the figure at tribunal
• Propose a figure at or slightly below the top of the comparable range to reduce challenge risk
• If your current rent is clearly below market rate (e.g., you have not increased it for several years), a larger increase may still be supportable if the evidence shows the market has moved significantly

The First-tier Tribunal rent challenge process

If a tenant disagrees with a proposed Section 13 rent increase, they can refer the matter to the First-tier Tribunal (Property Chamber) before the proposed effective date. The tribunal will determine the market rent for the property and that figure becomes the new rent.

How the referral works

The tenant (or all joint tenants jointly) can apply to the First-tier Tribunal to have the proposed rent assessed. The application must be made before the effective date specified in the Section 13 notice. If the effective date passes without a referral, the new rent takes effect automatically.

Once a referral is made:

1. The tribunal notifies both landlord and tenant of the application
2. Both parties submit evidence of comparable market rents (property listings, agent valuations, etc.)
3. The tribunal may conduct a hearing (in person or remotely) or decide the case on written submissions
4. The tribunal issues a determination setting the rent at market rate
5. The new rent takes effect on the date originally proposed in the Section 13 notice, or from the date of the determination if that is later

The floor on tribunal outcomes

The government has confirmed that the First-tier Tribunal cannot set a rent below what the tenant was paying before the Section 13 notice was served. This is an important protection for landlords. If you propose an increase from £1,000 to £1,200 and the tenant refers it to tribunal, the tribunal will set the rent at market rate — which might be £1,100 or £1,200 or £1,250, but it cannot be £900. The current rent acts as a floor.

What evidence does the tribunal consider?

The tribunal's approach is to establish the open market rent: the rent that a willing landlord and willing tenant would agree for the property as it stands, on the open market. Evidence considered includes:

• Current asking rents for comparable properties in the same area (same postcode district or nearby)
• Recent lettings evidence (actual rents agreed, not just asking prices)
• The specific characteristics of the property: size, condition, facilities, garden, parking, EPC rating
• Any disrepair issues that would affect what a prospective tenant would pay
• Local market trends (whether rents are rising or falling in the area)

Both landlord and tenant can submit comparable evidence. Landlords who come prepared with strong comparables typically achieve better outcomes than those who attend with no supporting data.

The rent bidding ban

The Renters' Rights Act 2025 prohibits landlords and letting agents from inviting offers above the advertised rent or creating any kind of bidding process for prospective tenants. The penalty for breach is an unlimited fine. Landlords cannot accept unsolicited offers above the asking price either.

The rent bidding ban is one of the most significant new provisions for landlords marketing rental properties. It operates alongside the rent increase restrictions to prevent both upward pressure at the start of tenancies (bidding) and excessive increases during tenancies (Section 13 + tribunal).

What the ban prohibits

Under the Renters' Rights Act 2025, landlords and letting agents are prohibited from:

• Advertising a property at a price below what they intend to let it for, in order to invite competing offers (deliberately under-advertising to generate a bidding war)
• Inviting prospective tenants to offer more than the advertised rent
• Creating any process that encourages or facilitates prospective tenants to compete on rent
• Accepting unsolicited offers above the advertised asking rent

What the ban does not prohibit

The rent bidding ban does not prevent landlords from:

• Setting their asking rent at any level they choose
• Choosing between multiple prospective tenants on grounds other than rent (references, employment, family size, etc.)
• Negotiating below the asking rent if the property does not let quickly
• Increasing the asking rent on a re-listed property if market conditions justify it

How to comply with the rent bidding ban

Compliance is straightforward for landlords acting in good faith:

• Set your asking rent at the level you genuinely expect to achieve
• When multiple applications are received, select a tenant based on suitability (references, employment, right-to-rent checks) rather than willingness to pay more
• If a prospective tenant spontaneously offers more than the asking rent, politely decline and let at the advertised price or negotiate to a mutually acceptable figure not exceeding the asking rent
• Ensure your letting agent understands and complies with the ban if they are managing viewings and applications on your behalf

Penalties for breach

A landlord or letting agent found to have engaged in rent bidding can be liable to an unlimited fine. The fine can be imposed by the local authority following an investigation. Tenants or prospective tenants who have been subjected to a bidding process can report it to their local council.

Old vs new: how rent increase rules changed

How to increase rent correctly: a practical example

Landlord Sarah has a tenant, James, paying £950/month for a 2-bedroom flat in Manchester. The tenancy started on 1 March 2025. By 1 March 2026, the tenancy is 12 months old and Sarah can increase the rent.

Step 1: Research the market

Sarah checks Rightmove and Zoopla for current 2-bed flats to rent in her postcode. She finds 5 comparables ranging from £1,000 to £1,150. She saves screenshots of the listings as evidence.

Step 2: Decide on a figure

Sarah decides to propose £1,050 — within the market range but not at the top. She wants to be fair to James while bringing the rent closer to market.

Step 3: Complete Form 4

Sarah downloads Form 4 from gov.uk. She completes it with the property address, current rent (£950), proposed rent (£1,050), and effective date (1 May 2026 — more than 2 months after she plans to serve it).

Step 4: Serve the notice

Sarah sends Form 4 to James by email on 28 February 2026. She asks him to confirm receipt. She keeps a copy of the email and the completed form.

Step 5: Wait for James's response

James accepts the new rent. He does not refer it to the tribunal. On 1 May 2026, the new rent of £1,050 takes effect. Sarah updates her records.

What if James had challenged?

If James had referred the increase to the tribunal before 1 May 2026, the tribunal would have assessed the market rent. Given Sarah's evidence of comparables at £1,000-£1,150, the tribunal would likely have confirmed £1,050 or set a figure within that range. The current rent (£950) acts as the floor — the tribunal cannot set it below that.

Rent increases during the first 12 months of a tenancy

Landlords cannot use Section 13 to increase rent during the first 12 months of a new tenancy. The first potential effective date for a Section 13 increase is the first day of the 13th month of the tenancy.

For a tenancy starting on 1 June 2026:

• The earliest the rent can increase is 1 June 2027 (12 months later)
• You would need to serve Form 4 by 1 April 2027 at the latest (2 months before)
• Between 1 June 2026 and 1 June 2027, the rent cannot be increased regardless of market movements

This protection is automatic — there is no need for tenants to assert it. A Section 13 notice served within the first 12 months of a tenancy is invalid and has no effect.

Informal rent increases: what is and is not permitted

Landlords sometimes ask whether they can agree an informal rent increase with a tenant, bypassing Section 13. The answer under the Renters' Rights Act is: possibly, but it is risky.

If a landlord and tenant genuinely agree in writing to vary the rent — and the tenant is not under any pressure and has had adequate time to consider — that variation may be effective as a contractual variation. However, Section 13 provides tenants with the right to refer any proposed increase to the tribunal. If a tenant later claims they felt pressured into agreeing an informal increase, they may be able to challenge it.

The safest approach is always to use Form 4 for any rent increase during a tenancy. It creates a clear paper trail, confirms the tenant's rights, and establishes an unambiguous effective date. Using Form 4 also protects the landlord if a dispute later arises about when and how the rent changed.