Rent Increase
The Renters’ Rights Act 2025 introduces significant changes to how landlords can increase rent under assured tenancies. From the commencement of the new regime, rent increases must generally be carried out using the statutory procedure under Section 13 of the Housing Act 1988.
The reforms are designed to create a clearer and more consistent framework for rent increases while strengthening tenant protections.
Rent Increases for Assured Periodic Tenancies
Under the new tenancy system, assured tenancies will operate as assured periodic tenancies. Landlords seeking to increase rent must follow the statutory process set out in Section 13 of the Housing Act 1988.
Rent increases can no longer be imposed through contractual clauses that attempt to bypass or replace the statutory Section 13 procedure.
Rent Review Clauses
The Renters’ Rights Act 2025 significantly limits the use of rent review clauses.
Any clause within a tenancy agreement that purports to allow a landlord to increase rent outside the statutory Section 13 procedure will no longer be effective for assured periodic tenancies.
As a result:
- Landlords cannot rely on contractual rent increase provisions to avoid the statutory process.
- Rent increases must generally be carried out using a valid Section 13 notice.
- Any attempt to impose an increase outside the statutory framework may be unenforceable.
Using Section 13 Notices to Increase Rent
Section 13 of the Housing Act 1988 remains the primary statutory mechanism for increasing rent under assured periodic tenancies.
To lawfully increase the rent, landlords must serve the prescribed Section 13 notice on the tenant which for private landlords is Form 4A.
Failure to comply with the statutory requirements may render the notice invalid.
Minimum Notice Period
Under the Renters’ Rights Act reforms, the notice period for a Section 13 rent increase has increased.
Landlords must now provide:
- At least two months’ notice before the proposed increase takes effect.
This replaces the previous shorter notice periods that applied to monthly or weekly tenancies.
Frequency of Rent Increases
Rent can generally only be increased once every 12 months using the Section 13 procedure.
Landlords should therefore ensure that any proposed increase reflects current market conditions and anticipated changes over the following year.
Challenging a Rent Increase
Tenants retain the right to challenge a proposed rent increase by applying to the First-tier Tribunal (Property Chamber).
The tribunal will consider the proposed rent and determine the market rent for the property.
However, under the new rules introduced by the Renters’ Rights Act:
- The tribunal cannot determine a rent higher than the amount proposed in the landlord’s Section 13 notice.
- The tribunal now has an express power to determine whether a Section 13 notice is valid.
This is an important change, as disputes can now involve both:
- The validity of the notice itself, and
- Whether the proposed rent reflects the market rate.
If the tribunal finds the notice invalid, the proposed increase may fail entirely.
Important Considerations for Landlords
Use the Prescribed Form
Landlords must ensure they use the correct prescribed Section 13 form. Errors in the form or service requirements may invalidate the notice.
Ensure Compliance with Notice Requirements
The full two-month notice period must be provided before the increase can take effect.
Avoid Informal or Unlawful Increases
Landlords should avoid relying on outdated tenancy clauses or informal requests for increased rent outside the statutory framework.
Be Prepared for Tribunal Scrutiny
Tenants may challenge both:
- The proposed market rent, and
- The legal validity of the Section 13 notice.
Landlords should therefore ensure notices are accurately drafted and properly served.
Conclusion
The Renters’ Rights Act 2025 fundamentally changes how rent increases are carried out under assured tenancies. Contractual rent review clauses can no longer be used to circumvent the statutory procedure, and landlords must now rely on the Section 13 process when seeking to increase rent.
With longer notice periods and enhanced tribunal powers, landlords should ensure they fully understand the updated legal requirements before serving any rent increase notice.
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