Rent Increases Under the Renters’ Rights Act: What Landlords Need to Know

The Renters’ Rights Act 2025 has changed the way landlords in England can increase rent.

For many landlords, rent reviews used to be handled through fixed-term tenancy renewals, informal agreement, rent review clauses or negotiation at the end of an assured shorthold tenancy. That landscape has now changed.

Under the new system, landlords need to use the correct legal process, give proper notice and be ready to justify the proposed rent if it is challenged.

The key message is simple: rent increases are now more formal, more limited and more transparent.

Why rent increases matter under the new system

The Renters’ Rights Act does not prevent landlords from increasing rent. Landlords can still increase rent where the law allows.

However, the Act changes the balance. Tenants now have more security because the old Section 21 route has ended, and rent increases cannot be used as an informal way to force tenants out.

This means rent increases need to be handled carefully.

A landlord should be able to show:

• the correct process was used;
• the correct notice was given;
• the proposed rent reflects market conditions;
• the increase was not retaliatory or discriminatory;
• records were kept properly.

Rent increases are now part of the wider shift towards evidence-based tenancy management.

Once per year

One of the most important changes is that landlords can generally only increase rent once per year.

This is designed to stop repeated or unpredictable rent increases and give tenants more certainty.

For landlords, it means rent planning needs to be more organised. A landlord should not rely on multiple small increases during the year or informal changes whenever costs rise.

Instead, landlords should consider rent levels carefully and plan ahead.

Two months’ notice

Landlords must also give tenants proper notice of a proposed rent increase.

The new process requires at least two months’ notice before the increase is due to take effect.

This gives tenants time to consider the proposed increase, take advice if needed and decide whether to accept it or challenge it.

Landlords should keep evidence of:

• the notice served;
• the date it was served;
• how it was served;
• the proposed new rent;
• the date the new rent is intended to begin.

Good record-keeping matters because a disputed rent increase may later turn on whether the correct process was followed.

Rent review clauses are no longer the easy answer

Before the Act, many tenancy agreements included rent review clauses. These clauses might set out how and when rent could increase during the tenancy.

Under the new regime, landlords should not assume that older rent review clauses remain effective in the same way.

The direction of the new law is that rent increases should be handled through the statutory process rather than hidden in older tenancy wording.

This means landlords should review tenancy agreements carefully. Any clause that refers to fixed-term rent reviews, automatic increases or outdated procedures may no longer be appropriate.

Section 13 becomes central

The formal rent increase process is now built around the statutory notice procedure.

For landlords, this means rent increases should not be handled casually by text message, informal email or verbal agreement unless the legal position is clear.

A landlord should use the correct form, give the correct notice and keep proof that the tenant received it.

This may feel more administrative, but it reduces uncertainty. It also creates a clearer record if the tenant challenges the increase.

Tenants can challenge above-market rent

Tenants may be able to challenge a proposed rent increase if they believe it is above the market rent.

This is one of the most important practical points for landlords.

A landlord should not simply choose a figure because mortgage payments, insurance costs, repairs or service charges have increased. Those may be real business pressures, but the key question is likely to be whether the proposed rent reflects the open market for that property.

Landlords should therefore keep evidence of comparable rents.

Useful evidence may include:

• similar properties in the same area;
• size and layout;
• number of bedrooms;
• property condition;
• outdoor space;
• parking;
• furnishing;
• recent improvements;
• local demand;
• current advertised rents;
• recently agreed rents where available.

The more significant the proposed increase, the more important this evidence becomes.

Avoid using rent increases as pressure

Rent increases should not be used as a way to remove a tenant without using the proper possession process.

The end of Section 21 means landlords must rely on valid possession grounds where they want the property back. A very large rent increase, especially one unsupported by market evidence, may be seen as an attempt to force the tenant to leave.

That could create dispute, delay and reputational risk.

Landlords should be particularly careful if a tenant has recently complained about repairs, property condition, damp, mould or safety issues. A rent increase served shortly after a complaint may be challenged or viewed with suspicion.

Rent increases and affordability

Landlords can still consider affordability when setting rent. However, affordability should be approached fairly and consistently.

A landlord should avoid discriminatory assumptions about tenants who receive benefits, have children or have particular personal circumstances.

The focus should be on whether the rent is lawful, properly notified and supported by market evidence.

Rent in advance restrictions

The Renters’ Rights Act also affects the way landlords deal with rent payments before and at the start of a tenancy.

Landlords should be careful about asking for large amounts of rent in advance. The new rules restrict how much rent can be required before a tenancy begins and prevent landlords from using upfront rent demands as a barrier to access.

This matters because some landlords previously asked for six or twelve months’ rent in advance where an applicant had limited references, overseas income, no guarantor or irregular earnings.

Landlords should now be cautious and make sure any upfront rent request is lawful.

Rental bidding is banned

Rent increases should also be understood alongside the ban on rental bidding.

Landlords and agents must advertise a clear rent and should not ask for, encourage or accept offers above the advertised rent.

This affects the beginning of the tenancy, but it reflects the same broader principle: rent should be transparent.

Landlords should avoid wording such as:

• “offers over”;
• “best rent offer”;
• “higher offers considered”;
• “rent from”;
• “competitive bidding invited”.

The advertised rent should be clear and accurate.

What landlords should do before proposing an increase

Before serving a rent increase notice, landlords should ask:

1. Has rent already been increased in the last 12 months?
   If so, another increase may not be allowed yet.
2. Is the proposed rent supported by market evidence?
   Comparable properties should be checked.
3. Has the correct notice period been given?
   At least two months’ notice is required.
4. Is the correct form being used?
   Informal communication may not be enough.
5. Could the timing look retaliatory?
   Be careful where there has been a recent complaint or dispute.
6. Are records being kept?
   Keep the notice, evidence of service and rent comparison evidence.
7. Is the letting agent using the right process?
   Landlords should not assume agent documents are up to date.

Common landlord mistakes

1. Sending an informal rent increase email

An email may be useful communication, but landlords should make sure the legal notice process is followed.

2. Relying on an old rent review clause

Older tenancy agreements may not reflect the new regime.

3. Increasing rent more than once in a year

Landlords should plan increases carefully and avoid repeated changes.

4. Giving too little notice

The tenant must have the required notice period before the increase takes effect.

5. Setting rent based only on landlord costs

Rising costs matter to landlords, but the proposed rent should still be justifiable by reference to the market.

6. Increasing rent after a complaint

The timing of a rent increase may create problems if it looks like a response to a tenant raising issues.

7. Failing to keep evidence

If challenged, the landlord should be able to show why the proposed rent is reasonable.

Practical checklist for landlords

Landlords should:

• review rent levels annually;
• keep local market evidence;
• use the correct rent increase notice;
• give at least two months’ notice;
• avoid informal rent increase arrangements;
• check that no increase has already been made within the year;
• avoid excessive or unsupported increases;
• keep evidence of service;
• review old tenancy agreement clauses;
• make sure agents are using updated processes;
• avoid rental bidding language in adverts;
• be careful with rent in advance requests.

The key takeaway

The Renters’ Rights Act does not stop landlords from increasing rent, but it does change how rent increases must be handled.

The new system is more formal, more transparent and more open to challenge.

Landlords should treat rent increases as a compliance process, not just a business decision. The strongest position will come from using the correct notice, giving enough time, keeping clear evidence and setting rent by reference to the market.

In the new rental landscape, rent increases need to be planned, documented and fair.

NetRent does not provide legal advice. This article represents our understanding of rental property law at the time of writing.

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