New Rent Increase Rules Under the Renters’ Rights Act 2025

The Renters’ Rights Act 2025 introduces significant changes to how landlords in England can increase rent, limiting increases to once every twelve months and requiring clear notice and alignment with market rent. These reforms aim to provide greater transparency and fairness in rent adjustments, replacing previous flexible arrangements.

Landlords must understand these new rules to ensure compliance and maintain positive tenant relationships under the updated legal framework.

Overview of the New Rent Increase Rules

Previously, under the Housing Act 1988, landlords had several options to increase rent, including fixed-term reviews, mutual agreements, or issuing a Section 13 notice during periodic tenancies. The Renters’ Rights Act 2025 simplifies this by restricting rent increases to once every twelve months, preventing multiple or frequent rent review clauses in tenancy agreements.

Any attempt to increase rent more than once a year will be invalid. This change aims to provide tenants with predictable rent levels and protect them from sudden or excessive increases.

Additionally, all rent increases must:

• Be served in writing using a prescribed notice format, which will replace the current Section 13 notice.
• Provide at least two months’ notice before the increase takes effect.
• Reflect the “market rent,” defined as the reasonable rent achievable for comparable properties in the local area.
• Be open to challenge by tenants if they believe the increase is excessive or not aligned with local market evidence.

These rules will apply to all Assured Periodic Tenancies once the new system is implemented, marking a substantial change in rent review procedures.

Implications for Landlords

The new rent increase rules have direct implications for landlords’ financial planning and tenant management.

Budgeting and Financial Planning

With rent increases limited to once per year, landlords must carefully forecast rental income, especially during periods of inflation. Aligning increases with market trends will help maintain profitability, but timing and justification are now more critical than ever.

Rent Review Clauses

Many traditional tenancy agreements include automatic rent review clauses every six months or biannually. These will no longer comply with the new legislation. The British Landlords Association (BLA) advises landlords to update agreements to reflect the statutory once-a-year increase rule.

Negotiation and Communication with Tenants

Open and early communication about rent reviews will be essential. Landlords should share local market data and maintain a professional approach to reduce disputes and the likelihood of tribunal challenges. Transparent practices can help retain reliable tenants and reduce void periods.

Implementation Timeline

The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025. However, the rent increase provisions will come into force alongside other reforms, such as the abolition of Section 21 and the introduction of Assured Periodic Tenancies.

The exact commencement date will be set by regulations expected in 2026. Until then, landlords must continue to use the existing Section 13 process for rent increases to remain compliant.

Once fully operational, the new rules will override any conflicting terms in existing tenancy agreements, becoming the sole lawful method for rent adjustments in assured tenancies.

Pending Guidance and Regulations

Several important details remain to be clarified through secondary legislation from the Department for Levelling Up, Housing and Communities (DLUHC). These include:

• The precise definition of “market rent” and how landlords should determine fair rent levels based on comparable local properties.
• The prescribed notice forms that will replace the current Form 4B (Section 13 notice).
• Procedural timelines for tenants to dispute rent increases and the documentation landlords must provide.
• The tribunal framework for assessing rent disputes to ensure fairness and consistency.

Members of the British Landlords Association will receive updates and templates once these regulations are published. Meanwhile, landlords should ensure rent reviews are supported by market evidence and maintain written records of communications.

Preparing for the New Rules: A Checklist for Landlords

• Review and amend existing tenancy agreements to remove rent review clauses that allow increases more than once per year.
• Regularly monitor local market rents using reliable data sources to ensure rent increases are fair and compliant.
• Keep detailed records of rent levels and communications with tenants to demonstrate transparency.
• Train letting agents and staff on the new notice requirements and statutory timelines.
• Communicate early and clearly with tenants about potential rent changes to maintain good relationships.
• Consider joining landlord associations such as the BLA for ongoing support, legal updates, and compliance resources.

Taking these steps now will help landlords transition smoothly and avoid legal or administrative complications when the new rules come into force.

Frequently Asked Questions

How often can rent be increased under the Renters’ Rights Act 2025?
Rent increases are permitted only once every twelve months, with proper notice and alignment to market rent.

What if a landlord tries to increase rent twice within a year?
Any second increase within the same 12-month period will be invalid and unenforceable.

Can tenants challenge rent increases?
Yes, tenants can dispute rent rises through a tribunal if they believe the increase exceeds market value.

When do the new rent increase rules take effect?
They will come into effect once commencement regulations are issued, expected in 2026.

Do landlords still use Section 13 notices?
Until the new prescribed forms are introduced, landlords should continue using Section 13 notices under existing law.

Conclusion

The Renters’ Rights Act 2025 introduces a clearer, fairer system for rent increases, limiting adjustments to once per year and tying them to market rent. Landlords who stay informed, maintain proper documentation, and communicate openly with tenants will be best placed to comply with the new rules and protect their investments.

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Useful External Links

• Renters’ Rights Act 2025 – Official Government Publication
• Section 8 Notices – GOV.UK
• Private Renting Tenancy Agreements – GOV.UK