The new rules for rent increases

The change forms part of the Renters’ Rights Act 2025 (RRA), which aims to make life easier for tenants in the private rented sector. Here, the government wants to protect people from unreasonable rent increases and give them more stable living conditions.

Simply put, the new rules state:

• Landlords must use the amended Section 13 notice and give two months’ notice
• They can only increase the rent once per year
• The new amount must be in line with local market rates
• Tenants can challenge rent increases through the tribunal system

Landlords must be ready to follow these new rules from the 1st of May 2026. Let’s look at each aspect in more detail.

Landlords must serve a Section 13 notice

As it currently stands, landlords can put up the rent of an assured tenancy in one of two ways:

• By referencing a clause in the written contract, or
• By serving a Section 13 notice of the Housing Act 1988, known as a statutory rent increase

The first is the one most often used because it’s relatively quick and straightforward, allowing the landlord to increase the rent by set amounts agreed in the contract.

The new system shifts how things work. Firstly, the introduction of mandatory periodic tenancies means renters won’t be locked into a contract for a fixed length (usually 12 months). Secondly, landlords will no longer be able to apply contractual rent increases. Instead, they can only use the second option of statutory increases and must give at least two months’ notice before the new amount kicks in.

What’s more, the RRA is updating Section 13 notices in the ways outlined below.

Landlords can increase the rent once per year

The rent can only be increased once every 12 months and only after the first year of the tenancy has passed. Government guidance suggests that landlords discuss any proposed increases with their tenants before serving the Section 13 notice to help smooth the process.

There’s a new Form 4A that landlords need to fill in to serve the notice (you can find guidance on how to use the form in the form itself).

The Section 13 notice can be served to the tenant:

• By email, if it’s allowed in the tenancy agreement
• By post
• In person

And for all future rent changes? The same process must be followed each time, even if the landlord and tenant have verbally agreed on the increase.

The new amount must be in line with local market rates

Government information states, ‘the increase will need to be in line with the rent that you would expect to receive if you were to relet the property on the open market’. 

While there isn’t a specific cap on the percentage increase, landlords can’t base the new rent solely on demand for their property but must apply local market rates.

Tenants can challenge rent increases through the tribunal system

Similar to other changes under the RRA, tenants can more easily contest rent increases if they think these are unfair. They’ll need to apply to the First-tier Tribunal (Property Chamber), which will decide whether the new rent is in line with the market rate.

In the current system, the tenant risks the tribunal determining the market rent is actually higher than the figure in the Section 13 notice, after which the higher figure will apply. Under the RRA, the new rent cannot exceed the landlord’s proposed amount, meaning the tenant has nothing to lose by going to the tribunal (and their rent will be held at its current level until a decision is made).

The axing of Section 21 ‘no fault’ evictions also allows tenants to challenge rent increases without the fear of being asked to leave their home.

Preparation is key

We recommend landlords familiarise themselves with the Section 13 process ahead of May. By getting your head around the new system, it’ll be easier to talk to your tenants about any rent increases – and how you’ve calculated the amount in line with market rates – to avoid problems that can involve the lengthy tribunal system.

For more updates on the RRA, check out other Winkworth blog posts, such as how to share the official Information Sheet with tenants.