How to Increase the Rent Under the Renters’ Rights Act 2025

We explain how to increase Rent under the Renters’ Rights Act 2025 in clear, practical steps for England. The Act has now received Royal Assent and reshapes rent setting, notice rules, and tenant challenge rights.

In short, rent increases are limited to once per year, must reflect market rent, and must be proposed with a valid Section 13 notice providing at least 2 months’ notice. Tenants can challenge proposed increases at the First-tier Tribunal.

Increasing Rent is still possible when you follow the correct sequence. We set out the rules, timing, and documents so you can apply for a rent increase compliantly under the Renters’ Rights Act 2025 and avoid invalid notices.

Understanding Rent Control Under the Renters’ Rights Act 2025

The Act restricts rent increases to once every 12 months for periodic tenancies. The new Rent must be no more than a fair market rent, the price a comparable property would achieve if newly advertised in the area.

You cannot use informal messages or side letters to raise Rent; the Act requires the formal Section 13 route, with strengthened rights for tenants to challenge above-market proposals.

There is no general cap or index-linked formula in the Act; instead, the market-rent standard is enforced through the Tribunal’s oversight. Government guidance and sector experts confirm the “once per year” rule and the requirement to use Section 13 as the lawful method.

When Can You Increase the Rent

You can propose a new rent when the following apply.

The tenancy is periodic. Under the new regime, most fixed terms transition to periodic arrangements. The once-per-year rule applies to these rolling contracts.

At least twelve months have passed since the last Section 13 increase took effect. If you served a notice less than a year ago, you must wait.

The law confirms that landlords can use Section 13 only once in any 12 months, and not in the first year of a tenancy.

You can evidence market rent. Prepare comparables from current listings and recent lets that are similar in size, condition, and location. If challenged, the Tribunal will test your figure against market data and will not set a rent above your proposed amount.

How to Serve a Valid Rent Increase Notice (Section 13)

Use the prescribed Section 13 notice form. Do not create your own or alter the format. Complete the property details, tenant names, current Rent, proposed new Rent, and the date the new Rent will take effect.

Give at least two months’ notice before the proposed start date of the new Rent. If Rent is paid monthly, choose an effective date aligned with the rent period. The Act and the latest guidance set 2 months as the legal minimum notice period.

Serve the notice in accordance with the tenancy’s service clause. Keep proof of service, such as a certificate of posting or recorded delivery receipt. If the agreement allows email service, follow that method strictly.

Explain briefly how you calculated the new Rent.

Although not mandatory, a short statement showing market comparables helps reduce disputes and shows reasonableness.

State clearly that the tenant may challenge the proposed increase by applying to the First-tier Tribunal before the effective date.

Tenant Rights to Challenge Rent Increases

Tenants can apply to the First-tier Tribunal (Property Chamber) to determine whether the proposed Rent exceeds the current market level. If the Tribunal agrees it is too high, it will set a fair market rent instead. The Tribunal cannot put the Rent higher than what you proposed.

This system discourages unrealistic rent demands and keeps increases tied to the open market. It also encourages landlords to back up any proposed increase with genuine market evidence.

The Renters’ Rights Act 2025 also strengthens the challenge process, providing more apparent timelines and access to the new Private Rented Sector Ombudsman for related procedural issues. The Ombudsman will not decide rent levels but can review complaints about how notices were handled.

Avoiding Common Mistakes That Invalidate Rent Notices

Using the wrong form — Always use the prescribed Section 13 notice. Letters, emails, or agent memos are not valid.

Wrong notice period — A minimum of two months’ notice must be given before the new Rent takes effect.

Multiple increases in a year — Even if market rents rise, you cannot issue more than one Section 13 notice per 12 months.

Incorrect effective date — Align the new rent date with the rental period. Misalignment can invalidate the notice.

Unrealistic rent level — Avoid proposing a rent far above the local market. Tribunal decisions focus on market comparables, not landlord costs.

No supporting evidence — Attach or reference at least three comparable rents in the same area to justify your proposal.

Failure to explain tenant rights — Include a statement advising tenants of their right to challenge the increase before the Tribunal.

FAQs

Can landlords increase Rent more than once a year?

No. Under the Renters’ Rights Act 2025 and Section 13 rules, landlords may only increase Rent once every 12 months for periodic tenancies. Attempting multiple increases could render all subsequent notices invalid.

What happens if tenants refuse to accept the new Rent?

Tenants can apply to the First-tier Tribunal before the new Rent takes effect. The Tribunal will then decide the fair market rent. If the tenant neither pays the new Rent nor applies to the Tribunal, the unpaid difference can become rent arrears. It is advisable to engage with tenants early and provide evidence to support your proposal.

Final Word

By following the correct Section 13 process giving two months’ notice, providing market evidence, and respecting the one-increase-per-year rule landlords can safely increase the Rent under the Renters’ Rights Act 2025 without breaching the law. A transparent and well-documented approach protects income and reduces the risk of disputes or Tribunal intervention.

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