How private landlords can increase rent and what’s changing with the Renters’ Rights Act.
Published January 2025
This content applies to England.
What’s changing and why it matters
The Renters' Rights Act 2025 is set to reform the private rented sector in England.
The Act will abolish section 21 'no-fault' evictions, and all assured shorthold tenancies will be replaced by periodic assured tenancies, which landlords can only end for a legal reason.
From 1 May 2026, landlords can only increase a periodic assured tenant's rent by serving a valid section 13 notice, which a tenant can challenge through the First-tier Tribunal. Until then, the current rules apply.
Rising rents
The timing matters. According to the Office for National Statistics, the average monthly private rent across the UK rose to £1,410 in the year to October 2025, a 5.5% increase alongside the wider cost-of-living crisis.
Although concerns remain about the lack of a formal rent cap, the government insists that the new rent increase rules will make the system more transparent and predictable for tenants while still allowing landlords to raise rents to reflect market value.
Rules before and after Renters' Rights Act
| Question | Current rules | Rules after 1 May 2026 |
|---|---|---|
| What's the lawful route to increase rent? | Multiple routes available | Section 13 only |
| Can a rent review clause be used? | Yes | No |
| Can the Tribunal set the rent higher than proposed by the landlord? | Yes | No |
| Can the Tribunal backdate the rent increase? | Yes | No |
| Can the Tribunal delay a rent increase? | Yes, but no later than the date the new rent is set | Yes, up to 2 months after the new rent is set |
How rent increases will work from 1 May 2026
The Renters' Right Act standardises rent increases for periodic assured tenancies, requiring landlords to use the process under section 13 Housing Act 1988, which is limited to once a year.
The current section 13 notice period is one month. After 1 May 2026, this will be two months.
The section 13 process
A landlord must issue a valid section 13 notice to start the rent increase process.
A tenant can challenge a rent increase by applying to the First-tier Tribunal.
A tenant is not required to agree or respond to the proposed rent increase. If the notice is valid and unchallenged, the rent automatically increases on the expiry of the notice period.
Challenging a rent increase through the tribunal
A tenant must apply to the tribunal before the section 13 notice expires if they wish to challenge the rent increase. The application is free.
The tribunal's role is to determine the market value of the property and set the new rent. The tribunal:
compares the property with similar properties in the local area
considers any evidence provided by the tenant and landlord
inspects the property if required
A tenant can only appeal the tribunal's decision if they believe it has made a mistake or the tribunal has not correctly applied the law.
Risks of challenging a rent increase
Under the current rules, tenants often avoid challenging a rent increase due to the risks:
the tribunal can set the rent higher than the landlord's proposal
a rent increase will be backdated to the section 13 notice expiry date
the threat of a section 21 eviction notice
The Renters' Rights Act will make changes to the tribunal system which eliminates these risks.
Potential increase in tribunal challenges
Very few tenants currently challenge a section 13 rent increase. Between 2024 and 2025, only 1,532 tenants applied to the tribunal for a rental determination.
Once fewer risks are attached to challenging an increase, we may see a rise in tenants' confidence to use the tribunal system. However, the tribunal process will still require time and effort, so the overall impact will depend on tenants' engagement.
It’s unclear how prepared the tribunals are for a potential upsurge in rent determination requests.
How tribunal powers are changing
The Renters' Rights Act will introduce limits to tribunal rent determinations, end backdated rent increases and change how invalid section 13 notices can be challenged.
The tribunal can determine the validity of section 13 notices
A tenant might receive an invalid section 13 notice, for example, where the landlord does not use the prescribed form.
Once the Renters' Rights Act is in force, tenants can challenge an invalid notice through the tribunal. This change will streamline the dispute process for tenants who wish to challenge both the validity of the notice and the proposed rent amount.
Under the current rules, a tenant needs to raise a technical challenge regarding an invalid notice in the County Court.
Limits on rent increase
Under the new rules, the tribunal cannot set the rent higher than what's been proposed by the landlord, even if it's less than the market value.
Under the current rules, the tribunal can set the rent higher than what the landlord has asked for. Challenging a section 13 rent increase involves a tenant estimating the market rent, which can be difficult. Unless a tenant or their adviser is confident that the landlord has proposed an above-market rent increase, tenants often avoid this risk.
No backdating rent payments
Under the new rules, any rent increase will start from the date the tribunal reaches its decision. It will no longer be backdated to the section 13 expiry date.
Until the rules change, once the tribunal sets the new rent, it will be backdated to the date specified on the section 13 notice. This often means tenants automatically fall into rent arrears, especially where there have been delays in the tribunal making its decision. In 2023-2024, tenants waited an average of 24 weeks for a tribunal hearing.
Delay increases for undue hardship
The tribunal will gain the power to delay a rent increase by up to two months from the date the new rent is set, where it would cause undue hardship.
This extra time can help struggling tenants to seek financial advice or look for alternative accommodation if the rent is unaffordable. The law does not define undue hardship, but it may include serious health issues or a risk of homelessness.
Under the current system, even if the tribunal recognises hardship, the new rent still takes effect immediately. The tribunal can delay an increase, but only up to the date it makes its decision. In other words, the tribunal can prevent tenants from paying backdated arrears, but the rent still rises from the decision date.
End of informal rent agreements
The most straightforward way to increase rent is for a landlord and tenant to agree to it.
Whilst no-fault evictions are standard practice, landlords have the upper hand to propose a higher rent in return for a new fixed-term tenancy. Many tenants accept rent increases they cannot afford because securing another year of stability in their home feels safer than risking a section 21 eviction notice and facing the competitive rental market.
Challenging a mutual agreement
Under the current law, a tenant who agrees to a rent increase in return for a new fixed term cannot challenge it. Even if a tenant does not expressly agree, paying the new rent is seen as agreeing to the increase. In exceptional circumstances, a court can set aside an agreement if there's evidence that this was entered into under unlawful pressure or victimisation.
Rent agreements made after 1 May 2026
The legislation does not prevent landlords and tenants from creating informal arrangements for new rent. However, if this is not confirmed by issuing a section 13 notice the agreement itself will not create a contractual change. This means if a landlord were to pursue a tenant for unpaid rent, this will be based on the rent specified in the tenancy agreement or any new rent created by a valid section 13 notice.
Rent review clauses no longer valid
Rent review clauses often appear in fixed-term contracts. Whether they are valid after the fixed term ends depends on the wording of the tenancy agreement.
Most rent review clauses do not specify the amount the rent will rise by. Instead, they usually explain how and when the landlord can increase the rent. For example, “The landlord will review the rent each September and give one month's written notice.”
These clauses are often vague but remain legally binding once a tenancy agreement is entered into. This is why tenants often face unexpected and significant rent increases.
Challenging a rent review clause
Tenants generally cannot challenge a rent increase if the landlord has followed the wording of the rent review clause. A legal challenge is only possible if the clause was hidden in the contract or written so unclearly that a tenant could not understand it. This is rare, and a tenant would need a court to strike out the clause as an ‘unfair term’ under the Consumer Rights Act 2015.
Rent review clauses prohibited under the Renters' Rights Act
Once the Renters' Rights Act is in force, all fixed-term tenancies will become periodic and landlords will not be able to rely on existing rent review clauses or include them in future tenancy agreements.