How Often Can You Increase Rent Under the New Renters’ Rights Regime?

With the introduction of the Renters’ Rights Bill, the private rental sector in England and Wales is undergoing a significant transformation. For landlords, one of the most pressing questions is: how often can you increase rent under the new Renters’ Rights Regime?

The answer is not as simple as it used to be. The government’s new framework aims to bring balance between fair returns for landlords and stability for tenants.

This article explores how often you can increase rent under the new Renters’ Rights Regime, explaining the legal limits, notice requirements, and strategies for compliance.

Understanding the Renters’ Rights Regime

The Renters’ Rights Bill introduces a new legal landscape for landlords and tenants. It abolishes fixed-term tenancies in favour of periodic (rolling) tenancies, meaning rent reviews and increases must comply with transparent rules.

The government’s goal is to ensure affordability and prevent excessive rent hikes, while still allowing landlords to adjust rents in line with market trends and inflation.

Understanding the frequency of rent increases under the new Renters’ Rights Regime is crucial to prevent disputes, penalties, and invalid rent notices.

Rent Increases Under Periodic Tenancies

Under the new system, all tenancies will become open-ended periodic agreements. This means landlords will no longer rely on annual renewals or fixed terms to revise rent.

Instead, rent increases must be managed through formal notice procedures and justified by fair market conditions.

The key rule is simple:

Landlords can increase rent once every 12 months.

This restriction ensures tenants are not subjected to multiple increases within a short period. Therefore, understanding how often you can increase rent under the new Renters’ Rights Regime means recognizing that one increase per year is the legal limit.

The Section 13 Procedure

Even under the new Renters’ Rights Regime, rent increases will continue to follow the Section 13 Notice procedure (as per the Housing Act 1988, updated under the Bill).

Landlords must:

Use the official Section 13 form to notify the tenant.
Provide at least two months’ notice before the increase takes effect.
Ensure 12 months have passed since the last increase or the start of the tenancy.

Failure to follow this process can invalidate the rent increase. Many landlords misunderstand this step, but it remains central to how often you can increase rent under the new Renters’ Rights Regime.

Fairness and Reasonableness Standard

Under the new reforms, rent increases must reflect market value and reasonable adjustments, not arbitrary amounts. Tenants who believe an increase is excessive can challenge it through the First-tier Tribunal (Property Chamber).

The tribunal will assess:

Local market rent levels.
Property condition and amenities.
Comparable rents for similar properties.

If found unreasonable, the tribunal can reject or modify the increase. Landlords should therefore base rent increases on credible market data, ensuring that the frequency of rent increases under the new Renters’ Rights Regime aligns with both fairness and evidence.

Notice Periods and Documentation

The Renters’ Rights Bill emphasizes transparency. Landlords must provide written notice using the correct statutory form, specifying:

The proposed new rent.
The effective date of the change.
The tenant’s right to challenge.

The two-month notice period is non-negotiable. Any rent increase implemented without proper notice or documentation is invalid and unenforceable.

This underscores why understanding the frequency of rent increases under the new Renters’ Rights Regime is vital for landlords seeking to remain compliant.

Index-Linked and Agreed Rent Reviews

Landlords with long-term tenants may include index-linked clauses tied to inflation (e.g., CPI or RPI). However, these clauses must still meet fairness tests under the new legislation.

While rent review clauses will remain legal, the government discourages automatic annual rent increases that exceed inflation. The intent is to make the process more predictable and transparent.

Thus, landlords should review their tenancy templates and remove outdated or unfair clauses to comply with how often you can increase rent under the new Renters’ Rights Regime.

Market Rent Adjustments After Tenancy Changes

If a tenant leaves and a new tenant moves in, landlords can adjust rent to reflect market value. However, for ongoing tenancies, increases must adhere to the 12-month rule.

This ensures that rent adjustments are gradual rather than exploitative, reflecting both fairness and market conditions. For landlords managing multiple properties, tracking rent cycles is crucial for maintaining compliance with the new Renters’ Rights Regime’s rent increase guidelines.

Avoiding Common Rent Increase Mistakes

Many landlords make costly errors when increasing rent, especially under evolving legislation. Common mistakes include:

Serving notice before 12 months have elapsed.
Using incorrect forms or templates.
Failing to give the full two-month notice.
Not justifying rent increases with market data.

Avoiding these pitfalls is critical to managing your portfolio effectively. Staying compliant ensures smooth tenancies and avoids tribunal disputes regarding how often you can increase rent under the new Renters’ Rights Regime.

What Tenants Can Do if Rent Is Increased Unfairly

Tenants now have greater protection and recourse under the new rules. They can:

Challenge rent increases via the First-tier Tribunal.
Request evidence supporting the increase.
Report non-compliant landlords to local authorities.

Landlords must therefore ensure every increase is justifiable, reasonable, and procedurally correct. Understanding the conditions under which rent can be increased under the new Renters’ Rights Regime will help avoid unnecessary legal challenges.

How to Justify Rent Increases Professionally

To demonstrate fairness, landlords should:

Gather local rental comparables for similar properties.
Retain written valuations or estate agent appraisals.
Keep communication with tenants polite and transparent.
Offer justification in writing when serving the Section 13 notice.

This professional approach not only upholds compliance but also supports long-term tenant relationships, a vital aspect of determining when rent increases can be implemented under the new Renters’ Rights Regime.

Preparing for the Future: Digital Transparency

The Renters’ Rights Bill also introduces digital record systems, where tenancy information, rent history, and compliance documents can be shared securely.

Landlords who embrace digital rent tracking tools will find it easier to prove compliance with the 12-month rule and maintain organized records for future audits.

Such modernization will redefine how often you can increase rent under the new Renters’ Rights Regime, promoting accountability and transparency.

FAQs

Can I increase rent more than once a year if costs rise?

No. Under the new Renters’ Rights Regime, rent can only be increased once every 12 months, even if costs rise.

What if my tenant refuses to pay the increased rent?

You must follow the Section 13 procedure and, if necessary, apply to the tribunal. Do not serve an eviction notice as retaliation.

Can I include automatic rent increase clauses?

Yes, but they must comply with fairness standards and not exceed reasonable inflation-based limits.

Does this apply to all tenancy types?

Yes, all private residential tenancies in England and Wales will follow the new Renters’ Rights framework.

Conclusion

Understanding the frequency of rent increases under the new Renters’ Rights Regime is crucial for landlords navigating a rebalanced rental market.

The once-a-year rule ensures fairness, transparency, and stability while still allowing landlords to adjust for market conditions and inflation.

By following the Section 13 procedure, maintaining clear documentation, and justifying increases professionally, landlords can remain compliant, respected, and financially secure under the new legal structure.

Need help now? Contact Landlord Advice UK today for tailored guidance and practical support to future-proof your rental business.