Rent Increases: What’s Changing Under The Renters' Rights Act
Current Process Of Rent Increases
The method used to review currently depends on the type of tenancy.
For fixed term tenancies, rent can be reviewed through a rent review clause included in the tenancy agreement. Alternatively, after the fixed term has ended, rent changes can be made by mutual agreement between the landlord and tenant.
For periodic tenancies, rent increases are typically carried out using a formal process known as a Section 13 Notice, which allows landlords to propose new rent once per year.
What’s Changing?
Section 6 of the Act introduces a single, standardised method for rent increase across all tenancy types: by following the Section 13 procedure and issuing a Form 4. From 1st May 2026, all rent increases will need to be agreed via a Section 13 Notice.
Rent reviews will only be permitted once per year and landlords will be required to give tenants at least two months' notice.
Understanding The Section 13 Notice
A Section 13 Notice is a prescribed form that landlords must use to propose a rent increase. The Notice will require details of the tenancy, the current rent amount, and proposed new rent.
Challenging A Proposed Rent Increase
Under Section 7 of the Act a tenant can challenge a rent increase to the First-Tier Tribunal who can order the following:
- Reduce the rent if the rent is above the market value
- If a Tribunal upholds the landlords proposed rent, the increase cannot be backdated.
- Delay the rent increase by up to two months if a tenant faces undue hardship.
Rent Increases And Renewing a Residential Tenancy
Landlords can access a range of professional resources to assist with rent reviews and Renewing a Residential Tenancy within Property.
