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One of the most practical questions landlords are asking about the Renters’ Rights Act is also one of the simplest: how will rent increases work once the new rules come into force?
For years, many landlords have relied on fixed-term tenancies when adjusting rents. When the fixed term ended, a new agreement could be offered at a revised rent level. The introduction of assured periodic tenancies as the default means that approach will largely disappear.
Instead, rent increases will usually take place through a statutory process known as Section 13.
This process already exists in housing law, but under the new system it will become the primary mechanism for adjusting rent during a tenancy. For landlords, understanding how Section 13 works — and how tenants may challenge increases — will become an important part of managing property in the years ahead.
Why the rules around rent increases are changing
The government’s intention is to make rent increases more transparent and predictable for tenants while still allowing landlords to adjust rents in line with the market.
Under the revised system, landlords will normally be able to increase rent once per year using the formal Section 13 process. This is designed to prevent frequent or sudden rent increases while still allowing rents to move in line with market conditions.
For landlords who have historically reviewed rents when renewing fixed-term tenancies, the biggest adjustment will simply be the timing and procedure of increases rather than the ability to increase rent itself.
How the Section 13 process works
Section 13 provides a formal legal route for increasing rent during an ongoing tenancy.
Under the Renters’ Rights Act framework, landlords will normally need to serve a Section 13 notice proposing the new rent. The notice must clearly state the proposed rent and the date from which it will take effect.
In most cases, tenants must be given at least two months’ notice before the increase takes effect.
If the tenant does not challenge the increase, the revised rent becomes payable from the date stated in the notice.
While this process may sound relatively straightforward, the detail matters. Section 13 notices must follow the correct legal format and be served properly. Errors in the notice itself, incorrect dates, or failing to observe the correct notice period can invalidate the increase entirely.
For landlords managing property themselves, these procedural requirements can sometimes be overlooked. In practice, this is one of the areas where professionally managed tenancies often operate more smoothly, simply because the process is handled regularly and the documentation is checked before notices are served.
How often rent can be increased
A key feature of the new system is that rent increases are generally limited to once within a twelve-month period.
This means landlords will need to think more strategically about when they review rents and how they align those reviews with market conditions.
For example, if a landlord serves a Section 13 notice and the rent increases in May, another increase would normally not be possible until at least May of the following year.
This rule is intended to create greater predictability for tenants while still allowing landlords to keep rents aligned with the local market.
What tenants can do if they believe the rent is too high
Tenants who believe a proposed rent increase is excessive will have the right to challenge the increase through the First-tier Tribunal (Property Chamber).
The tribunal will not simply decide whether the rent increase is fair in a general sense. Instead, it will assess what the market rent for the property would reasonably be.
If the tribunal decides that the proposed rent is in line with market levels, the increase will usually stand. If it decides the rent is above market value, the tribunal may determine a lower rent that will apply instead.
For landlords, this means that rent increases should be grounded in local market evidence, rather than arbitrary figures.
Why market evidence will become more important
Under the new framework, rent increases are more likely to be scrutinised if tenants choose to challenge them through the First-tier Tribunal.
The tribunal will assess what the market rent for the property would reasonably be, rather than simply accepting the landlord’s proposed figure.
For landlords, this means rent increases should be supported by clear market evidence. Comparable listings, recent lets in the same area, and data from similar properties can all be useful when assessing whether the proposed rent reflects local conditions.
This is another area where structured management can help. Letting agents working within a specific local market typically have access to recent rental data and comparable property evidence, which can make it easier to justify a proposed increase if it is questioned.
Avoiding common mistakes with rent reviews
The introduction of periodic tenancies means landlords will rely on the Section 13 process much more frequently than before.
The most common issues that cause problems with rent increases tend to be procedural rather than strategic. These often include:
- serving a Section 13 notice with incorrect dates
- attempting to increase rent more than once within a twelve-month period
- failing to provide the required notice period
- proposing a rent significantly above local market levels
None of these mistakes are particularly complex, but they can delay rent adjustments and sometimes lead to disputes with tenants.
Because the process is formal and time-sensitive, many landlords prefer to ensure rent reviews are handled through structured management processes rather than on an ad-hoc basis.
Managing rent reviews in practice
For many landlords, the most practical approach will be to build rent reviews into a regular annual management cycle.
That means reviewing local market rents, deciding whether an adjustment is appropriate, and serving the correct notice at the appropriate time.
Handled properly, the process should remain relatively routine. However, the shift to periodic tenancies does mean the margin for procedural mistakes becomes smaller, particularly where landlords are unfamiliar with the Section 13 process.
Ensuring the paperwork, timing and supporting evidence are correct from the outset helps avoid unnecessary delays or disputes.
The impact of periodic tenancies on rent reviews
Because assured periodic tenancies will replace fixed-term agreements, landlords will no longer have the natural opportunity to adjust rent when a new contract is signed.
Instead, rent reviews will happen during the tenancy itself through the Section 13 process.
In practice, this means landlords may need to adopt a more structured annual review cycle rather than relying on tenancy renewals as the trigger for rent changes.
When rent increases may not be appropriate
Although the legislation allows rent reviews, landlords will still need to approach increases carefully.
Large increases that are significantly above local market levels are more likely to be challenged. Similarly, landlords may want to consider the broader relationship with the tenant and the long-term stability of the tenancy.
In many cases, gradual and predictable increases aligned with the local market are less likely to lead to disputes.
Rent reviews in the wider context of the Renters’ Rights Act
Changes to rent increases sit alongside several other reforms affecting tenancy management.
The Renters’ Rights Act also introduces:
- the abolition of Section 21 “no-fault” eviction
- assured periodic tenancies as the default tenancy structure
- stronger enforcement powers for local authorities
- a national PRS landlord database
Taken together, these changes move the sector towards a more structured regulatory framework.
You can read more about these changes in our Renters’ Rights Act landlord guide, which explains the wider reforms affecting landlords.
Final thoughts
The new rules around rent increases are not designed to prevent landlords from adjusting rents. Instead, they introduce a more formal process that reflects the shift towards periodic tenancies.
For most landlords, the key change will simply be understanding when to use Section 13 notices, how much notice must be given, and how to ensure the proposed rent reflects the local market.
Handled correctly, rent reviews will remain a routine part of property management under the new system.
If you would like to discuss how the new rent review rules affect your properties, or explore moving from self‑management to full management, please get in touch with us today.