The Renters’ Rights Act: Rent Increases

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Rent increases are not a new concept in the private rented sector, and neither is Section 13. What is new under the Renters’ Rights Act is the role Section 13 plays.

Rather than being one option among several, Section 13 becomes the only lawful mechanism for increasing rent once all tenancies move to a periodic structure. For most landlords, this is less about changing what rent they charge and more about formalising the process they already follow.

In this article, we explain what has changed, what hasn’t, and what landlords need to understand in practice.

What exists today and what changes

Section 13 already exists under current law and is commonly used where a tenancy has become periodic. Historically, however, many landlords increased rent through:

• Fixed-term rent review clauses
• Contractual uplifts written into tenancy agreements
• Informal agreements reached with tenants

Under the Renters’ Rights Act, these routes fall away. With fixed terms removed and all tenancies operating periodically, Section 13 becomes the single route for rent increases.

What’s changing?

Under the new framework:

• Rent can be increased no more than once in any 12-month period
• All increases must be made using a Section 13 notice
• Informal or contractual rent increases will no longer apply
• Tenants have a clear statutory right to challenge a proposed increase

This creates consistency across the sector and removes ambiguity about how rent should be reviewed.

How will rent increases work in practice?

Under the Renters’ Rights Act, rent increases will follow a clear statutory process:

1. The landlord serves a Section 13 notice proposing a new rent
2. The notice must give the correct minimum notice period
3. The increase can only take effect once that notice period has expired
4. The proposed rent must reflect market rent

This applies regardless of how long the tenant has been in occupation or how the tenancy previously operated.

What happens if a tenant does not agree with the increase?

If a tenant believes the proposed rent exceeds the market level, they can refer the increase to the First-tier Tribunal (Property Chamber).

If this happens:

• The tribunal will assess the true market rent for the property
• Comparable local properties will be considered
• The tribunal will set the rent at a level it considers reasonable

Importantly:

• The tribunal cannot set the rent higher than the amount proposed in the Section 13 notice
• If a lower market rent is determined, that figure becomes the new rent

This makes evidence-led rent setting essential.

What does “market rent” mean in reality?

Market rent is dictated by local conditions, not aspiration.

In practice, this includes:

• What similar properties are achieving locally
• Demand and supply in the immediate area
• Property condition, size and layout
• Any material improvements or deterioration

Landlords who price sensibly in line with the local market are unlikely to face successful challenges.

Does this meaningfully change how landlords set rent?

For the vast majority of landlords, no.

In our experience, around 99% of landlords already approach rent increases reasonably and fairly. The market ultimately dictates rent levels, and landlords attempting to charge significantly above market rates often struggle to attract or retain good tenants. Overpricing is usually a false economy.

The Renters’ Rights Act does not change this commercial reality. Instead, it introduces structure and consistency to an area of compliance and operations that many landlords already manage sensibly.

What should landlords be doing now?

To operate confidently under the new framework, landlords should:

• Familiarise themselves with the Section 13 rent increase process
• Plan rent reviews as part of an annual cycle
• Keep evidence of comparable local rents
• Align rent levels with property condition and demand
• Communicate clearly and professionally with tenants

Forward planning and documentation are now key to avoiding disputes.

Final thoughts

Section 13 itself is not new - but under the Renters’ Rights Act it becomes central.

For landlords who already operate professionally and understand their local market, the new framework should feel more like a formalisation of good practice than a restriction. The rules around rent increases are clearer, more consistent and easier to navigate - provided landlords understand the process and prepare properly.

If you need help establishing the market rate of your property our team is always happy to help.

Coming up next

In Part 5, we’ll look at property standards, compliance and enforcement, and why failures in these areas can have knock-on effects across both possession and rent disputes.