Rent Increases Under the Renters' Rights Act
From 1 May 2026, rent can only be increased once per year using the correct statutory process. Informal rent increases and contractual shortcuts are no longer effective. Landlords must plan their rent strategy carefully.
The New Rent Increase Rules
Under the Renters' Rights Act, rent increases are subject to strict new rules from 1 May 2026. The key changes are:
- Rent can only be increased once per year
- Increases must follow the statutory Section 13 process
- Tenants can challenge increases they consider excessive at the First-tier Tribunal
- Informal rent increases or contractual shortcuts are no longer effective
- Rental bidding wars are banned — the advertised rent is the maximum
- Rent in advance is restricted to one month
Rent strategy must be considered carefully at the marketing stage, particularly because rental bidding is also prohibited.
Rental Bidding Wars Are Banned
Landlords and agents must not invite, encourage or accept offers above the advertised rent. The advertised rent becomes the maximum lawful rent. Casual wording or 'best offers' discussions can create compliance issues and expose landlords to enforcement action.
Limits on Rent in Advance
From 1 May 2026, landlords cannot require more than one month's rent upfront. Large advance rent payments used to 'screen' tenants are prohibited. Existing payment workflows may need to be updated before the new rules take effect.
How the Section 13 Process Works
All rent increases from 1 May 2026 must follow the statutory Section 13 process. This means landlords must serve a formal notice on the tenant proposing the new rent. The process works as follows:
Serve a Section 13 Notice
The notice must be in the prescribed form and must give the tenant at least one month's notice of the proposed increase. The new rent cannot take effect until the notice period has expired.
One Increase Per Year
Rent can only be increased once in any 12-month period. Landlords cannot serve multiple notices in quick succession to achieve a larger increase.
Tenant Can Challenge
If the tenant considers the proposed increase excessive, they can apply to the First-tier Tribunal to determine the market rent. The Tribunal will set the rent at the open market rate.
Plan Rent Strategy Early
Landlords who set rents below market rate and then try to increase them informally will find this no longer works. Rent strategy must be right from the outset of the tenancy.
Practical Impact
Review Your Rent Strategy Now
Landlords who set rents below market rate and then try to increase them informally will find this no longer works. Rent strategy must be right from the outset, and increases must follow the correct process. Contact us for advice on how to manage rent under the new rules.
Call 01244 757352Get Advice on Rent Increases
We can advise on the correct process for increasing rent under the new rules and how to set your rent strategy from the outset.
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