Rent Increases Under Review: What Landlords Need to Know

The Renters’ Rights Bill is making its way through the House of Lords and is expected to introduce wide-ranging reforms to the private rented sector. One of the biggest changes will be how and when landlords can increase rent.

These new rules are designed to improve transparency and give tenants more protection from sudden or excessive rent rises, while still allowing landlords to adjust rents in line with the market.

What’s Changing?

Currently, rent can be increased in three ways:

• Through a rent review clause in the tenancy agreement

• By mutual agreement between landlord and tenant

• By serving a Section 13 notice (Form 4) once every 12 months, with two months’ notice

Under the new Bill, only the Section 13 route will remain valid. This means:

• Only one rent increase every 12 months via Section 13 notice

• Two months’ notice required before any increase takes effect

• All increases must reflect current market rates

• Even with tenant agreement, a Section 13 must still be served

• Tenants will have stronger rights to challenge increases they believe are unfair

What This Means for Landlords

Rent review clauses will no longer be enforceable, and informal agreements won’t be valid unless supported by a Section 13 notice.

This makes forward planning essential. In fast-rising markets, waiting 12 months between increases may affect profitability.
You’ll also need to keep evidence of comparable local rents in case a tenant challenges an increase.

If a tenant disputes the increase:

• The First-Tier Tribunal will review the case

• The increase cannot be backdated

• The Tribunal cannot raise the rent above what you proposed

• In cases of hardship, the Tribunal can defer the increase by up to two months

The result: rent increases may take longer to come through, and there’s more risk of delay even if the proposed rent is below market value.

What This Means for Tenants

For tenants, the changes bring certainty and protection:

• Rent can only go up once a year

• It must reflect local market conditions

• Increases require proper notice and a clear legal process

• No risk of backdating if they challenge

• Ability to request a two-month deferral in cases of financial difficulty

How Landlords Can Prepare Now

Although the Bill is not yet law, there are practical steps landlords can take today:

• Remove rent review clauses from tenancy agreements

• Keep records of the last rent increase

• Always use the latest legal version of the Section 13 notice

• Track local market rents and plan ahead

• Open discussions with tenants before issuing a notice

• Provide evidence (such as local comparables) to support your rent adjustment

Being transparent and proactive will help reduce disputes and improve the chances of a smooth agreement. Working with a knowledgeable letting agent can also provide extra reassurance and ensure you stay fully compliant.