Renters’ Rights Act tips 04 – Rent Increases: A New Process for Landlords

Under the Renters’ Rights Act, the way landlords increase rent has fundamentally changed.

The new legislation removes the ease of informal agreements and rent review clauses, replacing them with a single standardised legal framework that all landlords must now follow.

For some landlords, this will require a significant shift in both planning and expectations.

Section 13 becomes the only route

Going forward, Section 13 is the sole legal mechanism for increasing rent.

This means:

* Rent review clauses within tenancy agreements will no longer be valid

* Informal agreements between landlord and tenant will not be legally recognised

Instead, all rent increases must follow the same formal Section 13 process.

The aim is to create greater consistency and transparency across the private rental sector.

New timing rules

The legislation also introduces stricter rules around how frequently rent can be increased and how much notice must be given.

Under the new framework:

* Rent can only be increased once every 12 months

* Landlords must provide a minimum of two months’ notice (previously one month)

In principle, both changes feel fair and reasonable. However, they do require landlords to become more proactive and forward-thinking when reviewing rental income and managing portfolio performance.

Tenant challenges and tribunal changes

Tenants will continue to have the right to challenge proposed rent increases through the tribunal system, for a newly introduced application fee of £47.

However, one of the most significant changes for landlords is this:

* Any rent increase will now only take effect once the tribunal has made its determination

* The previous ability to backdate increases has been removed

This means that even if a tenant’s challenge is ultimately unsuccessful, the increased rent cannot be backdated.

In practical terms, aside from the modest tribunal fee, there is very little financial disincentive for tenants to challenge a proposed increase.

At present, there is still uncertainty around how long tribunal cases will take under the new system. As a result, landlords may experience lengthy delays before any rental uplift actually takes effect.

And because another increase cannot then be served for a further 12 months, the effective rent review cycle could potentially extend from annual reviews to perhaps every 18 months or longer in practice.

Only time — and experience under the new framework — will reveal how this operates in reality.

What about caps on rent increases?

Contrary to some of the headlines circulating online, the legislation does not introduce a fixed cap on rent increases.

However, any increase must reflect fair market rent and be supported by appropriate market evidence.

Why this matters

While the system is becoming more structured, it also places greater emphasis on:

* Accurate market pricing

* Careful timing

* Proper documentation

* Following the correct legal process

Getting the process wrong could lead to disputes, delayed increases, and unnecessary loss of income.

Our advice

To navigate the new framework successfully, landlords should:

* Keep up to date with local market rents

* Plan rent reviews well in advance

* Ensure all increases are served correctly under Section 13

* Retain evidence supporting the proposed rental figure

A calm, evidence-based approach will be key to maintaining both compliance and long-term income stability under the new rules.

If you would like support reviewing your rental portfolio or tenancy setup, book a scheduled call with us – our team is here to help.

In the next instalment of our Renters’ Rights Act Tips Series, we’ll continue breaking down the key changes and what they mean for landlords moving forward.