Rent Increases Under the Renters' Rights Act 2025

From 1 May 2026, rent increases work completely differently. You can no longer rely on contractual review clauses (RPI, CPI, index-linked — all void now), and there's a single, mandatory mechanism: the Section 13 notice. The new framework gives tenants a real Tribunal challenge at every step, limits how often you can increase rent, and removes the percentage flexibility you might have had before. This cluster page walks you through the mechanics, the timelines, and what happens when tenants challenge you at the First-tier Tribunal.

How do you raise rent under the Renters' Rights Act 2025?

You must use Section 13 of the Housing Act 1988 (as amended). That's the only way. Any contractual rent review clause — whether it's tied to the Retail Price Index, Consumer Price Index, or any other index — becomes void and unenforceable from 1 May 2026. You cannot use automatic escalation clauses that may have been written into tenancy agreements; you cannot rely on fixed percentage increases. You must serve a prescribed Form 4A notice on your tenant, giving them a minimum of two months' written notice, and you can only do this once every 12 months. The rent you propose must be set at the open market rent for a comparable property; if it exceeds that figure, the tenant can challenge you at the First-tier Tribunal.

Sources: - Housing Act 1988, Section 13 (as amended) - Renters' Rights Act 2025: Rent increase provisions - First-tier Tribunal (Property Chamber): Rent assessment procedure

Timeline and Procedural Summary

Milestone	Requirement	Source
Tenancy start to 52 weeks	Cannot serve Section 13 notice	Housing Act 1988, Section 13(2)
From 52 weeks onwards	Can serve notice once per 12-month period	Housing Act 1988, Section 13(2)
Notice period (mandatory)	Minimum 2 months from service to effective date	Housing Act 1988, Section 13(2)
Initial rent challenge window	Tenant can challenge within first 6 months of tenancy	Housing Act 1988, Section 14(1)(a)
Tribunal challenge period	Usually 30 days before increase effective date, or shortly after	First-tier Tribunal Procedure Rules
Tribunal hearing timeline	8–16 weeks from submission to hearing	First-tier Tribunal standard timescales
Written reasons issued	Within 6 weeks of hearing conclusion	First-tier Tribunal Procedure Rules
Hardship delay maximum	Tribunal can delay increase up to 2 months if undue hardship proven	Housing Act 1988, Section 14(8)

When can you serve a Section 13 notice?

You cannot serve one in the first 52 weeks of the tenancy. After that, you can serve notice once per 12-month period (counting from the date you last served a valid notice, or from the start of the tenancy if this is your first increase). The two-month notice period is mandatory — anything shorter is invalid. This means that if you serve notice on 1 June, the earliest the new rent can take effect is 1 August. If you serve notice on 15 November, the new rent cannot start before 15 January. You must use Form 4A (the prescribed form available from the Ministry of Housing, Communities and Local Government from 1 May 2026). Serving notice on any other form, or on an informal basis, won't work.

Sources: - Housing Act 1988, Section 13(2) - Ministry of Housing, Communities and Local Government: Prescribed Forms

What counts as "open market rent"?

Open market rent is defined in the Housing Act 1988, Section 14, as the rent a willing landlord and willing tenant would agree on for a property of similar size, condition, location, and tenure in the private rental market at the time the increase notice was served. The First-tier Tribunal determines this if there's a dispute, examining comparable lettings in the area, rental indexes, and evidence both you and the tenant bring. You don't have to use an agent's valuation or surveyor's assessment (though either strengthens your position); you just need to show your proposed rent is reasonable by comparison to similar properties. If the Tribunal finds your proposed rent exceeds the open market rate, it reduces the increase to that level but cannot increase the rent above what you proposed — there's no upside for you once it reaches Tribunal, which is why evidence and comparable data are critical.

Sources: - Housing Act 1988, Section 14(1) - First-tier Tribunal (Property Chamber): Rent assessment guidance

What happens if a tenant challenges your increase at the First-tier Tribunal?

A tenant has the absolute right to apply to the First-tier Tribunal within a prescribed period (usually the 30 days before the increase date, or shortly after). The Tribunal will decide whether your proposed rent is the open market rent for a comparable property. If your figure is too high, the Tribunal reduces it; if it's reasonable, the Tribunal confirms your proposed rent. You have nothing to gain by going to Tribunal and everything to lose — the Tribunal cannot award you a rent above your proposed figure. The Tribunal process typically takes 8–16 weeks from submission to hearing, with written reasons issued within six weeks of the hearing.

Sources: - First-tier Tribunal (Property Chamber) Procedure Rules - Shelter: Tenant rights to challenge rent increases

Can a tenant challenge the initial rent at the start of a tenancy?

Yes. In the first six months of a tenancy, a tenant can apply to the First-tier Tribunal to challenge the initial rent — even before any formal increase notice is served. The Tribunal assesses whether the initial rent was set at the open market rent for a comparable property at the start of the tenancy. If the Tribunal decides the initial rent was too high, it can reduce it with effect from the start of the tenancy, and you'll owe the tenant a refund of the overpaid amount. This is a significant exposure and worth remembering when setting an initial rent on a new tenancy agreement. The mechanism is the same: the tenant applies, evidence is presented, the Tribunal decides.

Sources: - Housing Act 1988, Section 14(1)(a) - Keystone Law: Rent setting and initial rent challenges

What do you need to include in a Section 13 notice?

Use Form 4A, the prescribed form from 1 May 2026. It must include: the property address; the date of service; the date from which the new rent will take effect (minimum two months from service); the amount of the proposed new rent; the current rent; a comparison statement or evidence showing the proposed rent is market rent (strongly recommended, though not formally required); and a statement explaining the tenant's right to challenge at the First-tier Tribunal. The notice must be dated and signed. Serving it outside these requirements — for example, with a notice period shorter than two months, or without the prescribed form — makes the notice invalid. Tenants' advisers will spot poor form completion, and you'll face Tribunal delays while the issue is resolved.

Sources: - Ministry of Housing, Communities and Local Government: Form 4A (Prescribed Form) - Penningtons Manches: Serving Section 13 notices

Are there any exceptions or exemptions from the Section 13 process?

No material exemptions. All assured tenancies under the Housing Act 1988 are subject to Section 13. Assured shorthold tenancies (ASTs), which are the most common form of private rental agreement, are covered. Excluded tenancies (licence agreements, certain resident landlord situations) may have different rules, but the vast majority of private lets will follow Section 13. Furnished properties, unfurnished properties, council or housing association properties — if it's an assured tenancy, Section 13 applies. You cannot contract out of Section 13; any clause in a tenancy agreement that tries to do so is void. This is intentional: the law removes landlord flexibility to protect tenants from unexpected or aggressive increases.

Sources: - Housing Act 1988, Section 38A (contracting out prohibition) - Citizens Advice: Private rental sector rights and responsibilities

What information must you give existing tenants about the new rules?

From 1 June 2026, you must provide all existing tenants with an information leaflet explaining how rent increases work under the Renters' Rights Act 2025. The leaflet will be provided by the MHCLG and will set out the Section 13 process, the two-month notice period, the tenant's right to challenge at the First-tier Tribunal, and the concept of open market rent. You cannot charge tenants for this leaflet. The deadline is 1 June 2026, which gives you a 31-day window from the Act's commencement date (1 May) to distribute it. Failure to do so may result in enforcement action by local authorities or tenant unions. This is a straightforward compliance requirement, not a complex one.

Sources: - Renters' Rights Act 2025: Information requirements - Ministry of Housing, Communities and Local Government: Landlord guidance

FAQ: Rent Increases Under the Renters' Rights Act 2025

1. Can I use a contractual rent review clause from my existing tenancy agreement?

No. All contractual rent review clauses — whether tied to the Retail Price Index, Consumer Price Index, or any other index or fixed percentage — become void and unenforceable from 1 May 2026. This applies to existing tenancies and new ones. The only mechanism available is Section 13 with Form 4A. If you attempt to enforce an old clause, the tenant can complain to the Tribunal or local authority, and you'll face potential sanctions. You must switch to Section 13 notices for all rent increases from 1 May 2026 onwards, regardless of when the tenancy started.

2. How often can I raise rent, and is there a percentage cap?

You can raise rent once every 12 months (from the date you last served valid notice). There is no statutory percentage cap — you are not limited to, say, 5% or the rate of inflation. However, your proposed rent must be set at the open market rent for a comparable property; if it exceeds that, a tenant can challenge you at the First-tier Tribunal, and the Tribunal will reduce it. The market itself is the cap: you can only charge what a comparable property would fetch. On 15 April 2026, if you serve a Section 13 notice proposing a 15% increase, you'll need evidence that this is the open market rate; without it, the tenant will challenge, and the Tribunal will likely find it excessive.

3. What happens if a tenant challenges my rent increase at the First-tier Tribunal?

The Tribunal will assess whether your proposed rent is the open market rent for a comparable property. If it agrees, the increase stands. If it disagrees, the Tribunal reduces the rent to what it deems is open market. Importantly, the Tribunal cannot increase the rent above your proposed figure — there is no upside for you. This asymmetry is intentional; it encourages you to propose a reasonable figure in the first place. The Tribunal process typically takes 8–16 weeks from submission to hearing, and you must continue to accept rent at the level you originally proposed until the Tribunal decides (or longer if the tenant asks for a stay). After the hearing, written reasons are issued within six weeks.

4. Can I serve a rent increase notice in the first year of a new tenancy?

No. You cannot serve a Section 13 notice in the first 52 weeks of the tenancy, regardless of the circumstances. This is a hard rule with no exceptions. You can set an initial rent however you like, but if a tenant believes it's above the open market rent, they can challenge it within the first six months (before or after signing). After 52 weeks have passed, you can serve notice for the first increase. If you sign a new tenancy on 1 June 2026, you cannot serve a Section 13 notice until 1 June 2027. Many landlords use this rule to front-load higher rents at the outset, knowing they cannot change them for 52 weeks.

5. What if a tenant disputes my proposed rent as not being market rent — how do I defend yourself?

Gather comparable evidence immediately. You'll need rent data for at least three properties of the same type in the same area (use Rightmove, Zoopla, or local agents' asking prices from the past three months). Rental index reports strengthen this further; agent valuations or surveyor assessments are optional but significantly improve your Tribunal credibility. The more recent and granular your comparables, the stronger your position when the Tribunal reviews your proposed increase. Serve notice with a brief summary of your evidence attached; this signals professionalism and often discourages challenge entirely. If a Tribunal hearing is unavoidable, present your evidence clearly and be ready to explain why comparable properties support your figure.

6. What is "undue hardship" and can the Tribunal use it to block my rent increase?

Undue hardship is a narrow concept. The Tribunal can delay an increase by up to two months if it believes the tenant would face genuine hardship — for example, if the increase would render them unable to afford essentials or would force them into homelessness. The Tribunal will not use this to permanently block an increase or to reduce it below open market rent. Hardship is an emergency brake, not a tool for reducing rent. As at 22 March 2026, case law on undue hardship under the Renters' Rights Act 2025 is still developing, so expect Tribunal decisions to refine the concept. In practice, this is a rare outcome, reserved for cases with clear evidence of severe financial distress.

Action Checklist: Serving a Section 13 Rent Increase Notice

[ ] From 1 May 2026 onwards: Obtain the prescribed Form 4A from the Ministry of Housing, Communities and Local Government website.
[ ] 12+ months from tenancy start or last increase: Verify the tenancy is 12+ months old and you have not served notice in the past 12 months.
[ ] Gather comparables: Research at least three comparable properties in the same area (Rightmove, Zoopla, local agents) to establish open market rent.
[ ] Complete Form 4A: Enter property address, current rent, proposed rent, effective date (minimum 2 months from service), and attach or reference your comparable evidence.
[ ] Serve notice: Send Form 4A to the tenant's registered address (email or post). Keep proof of service (tracked mail, email read receipt, or signed copy).
[ ] Start date: The new rent cannot take effect until the minimum two-month notice period has expired.
[ ] Monitor for challenge: After service, a tenant can challenge the increase at the First-tier Tribunal within a specified window (typically 30 days pre-effective date or shortly after). Be prepared to defend your open market rent figure with evidence.
[ ] By 1 June 2026: Ensure all existing tenants receive the prescribed information leaflet about the new rent increase rules.

Key Takeaways

Section 13 is mandatory: All contractual rent review clauses are void from 1 May 2026. Form 4A is the only valid method.
Timing rules are rigid: 52-week ban from tenancy start, once per 12 months, minimum two-month notice period.
Open market rent is the ceiling: The Tribunal will challenge any increase above this, and you have no upside in Tribunal proceedings.
Initial rent can be challenged: Tenants can challenge the starting rent within the first six months.
Evidence is critical: Comparables, rental indexes, and professional valuations will save you time and money if challenged.
Information leaflet deadline: Distribute the prescribed leaflet to all existing tenants by 1 June 2026.

For a full overview of the Renters' Rights Act 2025 and how it affects your responsibilities as a landlord, see the Renters' Rights Act 2025 for Landlords pillar page. For related topics, explore:

Maintenance Notice

This article reflects the Renters' Rights Act 2025 as of 22 March 2026. Housing law evolves, and First-tier Tribunal decisions on open market rent and undue hardship continue to develop. We monitor changes and update this content accordingly. If you need real-time guidance or have encountered a specific scenario not covered here, consult a letting agent, solicitor, or ARLA Propertymark or National Landlords Association.

For step-by-step compliance support across all Renters' Rights Act 2025 obligations, explore the Landlord Compliance Navigator.