Can Landlords Increase the Rent Under the Renters Reform Bill? – Full Guide with Pros, Cons and FAQs (2025 Update)
The Renters Reform Bill is one of the most significant housing legislative changes in England in recent decades. Designed to overhaul the private rented sector (PRS), the Bill aims to create a fairer and more balanced system for both tenants and landlords.
One of the most pressing concerns among landlords is: Can I still increase the rent under the new law?
This comprehensive guide explores that question in depth. We’ll cover what the Renters Reform Bill says about rent increases, examine the process in detail, evaluate the advantages and disadvantages for landlords, and answer the most common frequently asked questions.
Understanding Rent Increases in the Renters Reform Bill
Under the Renters Reform Bill, the government proposes several reforms to provide security of tenure for tenants and clarity of process for landlords.
One of the most notable aspects of the Bill is the abolition of Section 21 ‘no fault’ evictions and a shift to periodic tenancies (rolling tenancies without a fixed term).
With the move away from fixed-term agreements, many landlords are asking how this affects their ability to increase rent.
Can Landlords Increase the Rent?
Yes, landlords can still increase the rent under the Renters Reform Bill. However, they must do so in a more regulated and transparent way.
Here’s how rent increases will work under the new rules:
- Rent can only be increased once every 12 months.
- The rent increase must be done via the Section 13 notice process (as outlined in the Housing Act 1988).
- Tenants must be given at least 2 months’ notice before the new rent takes effect.
- If the tenant believes the increase is unfair or excessive, they can challenge it through the First-tier Tribunal.
- Landlords will no longer be able to increase rent by simply issuing a new fixed-term agreement with a higher amount, because all tenancies will be periodic by default.
Why Is This a Concern for Landlords?
Previously, landlords had more flexibility. If a tenant refused a rent increase, a landlord could wait until the end of the fixed term and offer a new agreement at a higher rate. With the end of fixed-term tenancies, this strategy disappears.
The Bill effectively standardises the rent increase process and puts tenants in a stronger position to resist unaffordable increases.
Detailed Overview: How Rent Increases Work Under the Bill
Annual Cap on Increases
A landlord can only propose a rent increase once per year. This rule is designed to prevent frequent or unexpected rent increases that could disrupt a tenant’s ability to remain in the property.
Mandatory Two-Month Notice
Rent increases must be communicated with a full 2-month notice. This gives the tenant time to adjust, budget, or raise objections.
Rent Increase Process – Section 13 Notice
The Section 13 notice remains the legal instrument used to propose an increase in rent for periodic tenancies. It includes:
- The new proposed rent amount
- The date the new rent will come into effect
- Information on the tenant’s right to challenge the increase
Tenant’s Right to Appeal
Tenants can refer the proposed rent increase to the First-tier Tribunal if they believe it is excessive or not in line with market rents.
The tribunal will assess whether the proposed rent is fair in relation to similar properties in the same area.
Market Rate Limit
While the Bill does not impose a rent cap, increases must be in line with the open market. This prevents landlords from charging wildly inflated rents.
Advantages of the Renters Reform Bill for Landlords
Despite some concerns, the Bill also offers clear advantages for responsible landlords.
More straightforward Process for Rent Increases
The standardisation of the rent increase process eliminates ambiguity. Landlords know what to expect, and the formal procedure reduces the risk of disputes.
Periodic Tenancies Offer Flexibility
Although fixed terms are no longer in place, periodic tenancies still allow landlords to give two months’ notice to regain possession if they meet one of the legitimate grounds for possession, such as selling the property or repeated rent arrears.
Less Pressure from Unfair Eviction Claims
By using a formal rent increase notice, landlords are less likely to face accusations of retaliatory rent hikes or evictions.
Encourages Long-Term Tenants
The Bill is designed to promote housing stability. Long-term tenants often mean lower turnover, fewer void periods, and more consistent rental income.
Disadvantages of the Renters Reform Bill for Landlords
However, there are significant downsides, particularly for those operating in rapidly shifting rental markets or areas with high inflation.
Loss of Leverage
Landlords lose the option to increase rent simply by issuing a new fixed-term contract. If a tenant refuses the increase, the landlord can no longer force a move-out and relet at a higher rate without a valid reason for eviction.
Administrative Burden
The reliance on the Section 13 process requires landlords to serve correct notices, adhere to strict timelines, and be prepared for tribunal disputes.
Tenant Challenges
Tenants can more easily challenge rent increases, which may delay or reduce the income a landlord hoped to gain. Tribunal processes can be time-consuming.
Rent Freeze Effect in Some Regions
Although the Bill doesn’t impose rent caps, local authorities or devolved nations could push for stronger local controls or rent freeze legislation in the future.
One Rent Increase Per Year
This cap limits a landlord’s ability to respond quickly to rising interest rates, inflation, or increased property maintenance costs.
Practical Tips for Landlords
- Plan rent increases annually and factor in inflation and market trends to avoid losing out.
- Document comparable rents in the area to justify the increase in case of a tribunal challenge.
- Maintain good communication with tenants. A well-explained and reasonable increase is less likely to be contested.
- Use the official Section 13 form to avoid procedural errors.
- Review your property’s condition and amenities—quality homes justify higher rent within market norms.
Who Benefits Most From the New Rules?
Tenants:
- Greater protection from arbitrary rent hikes
- More predictability and stability in housing costs
- Empowerment to challenge excessive increases
Landlords:
- Clear legal framework
- Opportunity to retain tenants long-term
- There is less risk of rent disputes escalating into eviction proceedings
Frequently Asked Questions (FAQs)
Can I increase the rent more than once a year under the Renters Reform Bill?
No. The Bill explicitly states that rent can only be increased once every 12 months, regardless of any change in market conditions.
Do I need to issue a new tenancy agreement with a rent increase?
No. Under the new system, tenancies are periodic by default, and rent increases must be issued via a Section 13 notice. A new tenancy agreement is not required.
Can a tenant refuse a rent increase?
Yes. If a tenant believes the increase is unreasonable, they can challenge it by applying to the First-tier Tribunal, which will determine whether the new rent is in line with market rates.
Can I increase rent without using a Section 13 notice?
Only if the tenant agrees voluntarily in writing to a new rent amount, without a formal agreement, is the Section 13 process required.
If the tenant challenges the rent increase, can I evict them?
Not unless you meet one of the legitimate grounds for eviction listed under the new framework. Rent increases alone do not form a valid reason for eviction under the Renters Reform Bill.
Will there be a national rent cap?
Not under the Renters Reform Bill as currently drafted. However, regional policies may evolve, especially in devolved administrations like Scotland or Wales. England currently maintains a market-based rent setting, with regulation focused on fairness and process.
What happens if I serve the Section 13 notice incorrectly?
An incorrectly completed notice may be invalid, and you may have to reissue it. This can cause delays and confusion. Using the correct form and providing accurate information is crucial.
Can landlords increase the rent for new tenants?
Yes. When a property is relet to a new tenant, landlords can set the rent at any market rate. The new restrictions apply only to existing periodic tenancies.
Will rent increases help me offset increased mortgage costs?
Only partially. Because increases are limited to once a year and can be challenged, landlords in areas with rapidly rising costs may struggle to recover these costs through rent alone.
Does the tenant have to accept the new rent if the tribunal sets it?
Yes. Once the First-tier Tribunal decides on a fair market rent, both landlord and tenant must accept that rate for at least 12 months unless they come to a different mutual agreement.
Conclusion
The Renters Reform Bill marks a significant shift in how landlords and tenants interact, particularly around rent increases. While landlords retain the legal right to increase rent annually, the process is now more regulated, more transparent, and more tenant-friendly.
The loss of fixed-term contract flexibility, coupled with tenants’ enhanced rights to challenge rent hikes, means landlords must be more strategic and diligent than ever before.
However, with careful planning and compliance, many landlords will still be able to operate profitable, sustainable portfolios under the new rules.
For landlords, the key is to embrace the clarity and structure the Bill provides rather than resist it.
Adapting to this new landscape with professional practices, proper notice procedures, and reasonable increases will go a long way toward preserving good landlord-tenant relationships and avoiding legal pitfalls.
Note the Renters Reform Bill is not yet law, nor do we yet know the exact text of the Act of Parliament.
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