New Rent Increase Rules Under the Renters’ Rights Act 2025
The Renters’ Rights Act 2025 introduces a new framework governing how and when landlords in England can increase rent. These rules aim to promote transparency, fairness, and consistency in rent adjustments, replacing the old flexible system with a more straightforward statutory process.
Understanding these new rent increase rules under the Renters’ Rights Act 2025 is vital for landlords to remain compliant and maintain good tenant relationships.
What the Change Is
Restriction on How Often Rent Can Be Increased (Once a Year), Requirement for Notice and Aligning with Market Rent
Under the previous Housing Act 1988, landlords could increase rent through several mechanisms, such as fixed-term reviews, mutual agreements, or a Section 13 notice in periodic tenancies. The new law simplifies this system and introduces stronger limits.
The Renters’ Rights Act 2025 now restricts rent increases to once every twelve months. Landlords can no longer insert multiple or excessive rent review clauses in their agreements.
Any attempt to raise rent more frequently will be deemed invalid. The aim is to ensure predictable rent levels and prevent unfair or sudden increases.
In addition, all rent increases must:
- Be served in writing using a prescribed notice format (expected to replace the current Section 13 notice).
- Provide at least two months’ notice before taking effect.
- Reflect “market rent”, defined as the reasonable rent achievable for similar properties in the local area.
- Be open to challenge by the tenant if they believe the increase is excessive or not in line with local market evidence.
These changes will apply across all Assured Periodic Tenancies once the new system comes into force, marking a significant shift in how rent reviews are handled.
Why It Matters: Budgeting, Rent Review Clauses, Negotiation with Tenants
The new rent increase rules under the Renters’ Rights Act 2025 directly affect how landlords manage their cash flow and investment returns. Limiting rent adjustments to once per year means landlords must carefully plan their financial strategies.
Budgeting and Financial Planning
Landlords must forecast rental income more accurately, especially during periods of inflation. Annual increases aligned with market trends help maintain property profitability, but timing and justification are now key.
Rent Review Clauses
Traditional tenancy agreements that contained automatic six-month or biannual rent reviews will become non-compliant.
The British Landlords Association (BLA) advises landlords to remove such clauses and update agreements to align with the new statutory model.
Negotiation with Tenants
Open communication becomes crucial. Landlords should discuss upcoming rent reviews early, share local market data, and maintain a professional tone.
This helps prevent disputes and reduces the risk of tenants challenging increases before a tribunal.
Landlords who adopt fair and transparent practices are more likely to retain reliable tenants, minimise voids, and strengthen their reputation under the new legislative environment.
When It Comes into Force: In Line with Other Major Parts of the Act; Watch for Commencement
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025. Still, the rent increase provisions will take effect alongside other key reforms, including the abolition of Section 21 and the introduction of Assured Periodic Tenancies.
Implementation will occur through commencement regulations expected in 2026, which will specify the exact start date for the rent control measures. During the transitional period, landlords must continue using existing Section 13 procedures for rent increases, ensuring full compliance with current law.
Once the Act is fully operational, the new rent increase rules under the Renters’ Rights Act 2025 will override any conflicting terms in existing tenancy agreements. The new framework will then become the only lawful mechanism for rent adjustments across all assured tenancies.
Awaiting Guidance: Regulations on “Market Rent” Definition, Notice Formats
At the time of writing, several crucial elements of the new rent system remain pending. The government, through the Department for Levelling Up, Housing and Communities (DLUHC), will issue secondary legislation to provide detailed guidance, including:
- Definition of “market rent”: This clarifies how landlords must determine fair rent levels, likely based on evidence from comparable local properties.
- Prescribed notice forms: A new format for rent increase notices will replace the current Form 4B (Section 13 notice).
- Procedural timelines: Confirming how tenants can dispute increases and what documentation landlords must provide as evidence.
- Tribunal review framework: Establishing the criteria by which rent disputes will be assessed to ensure consistency and fairness.
Members of the British Landlords Association will receive direct updates and templates once these documents are released. Until then, landlords are advised to maintain rent reviews in line with market evidence and preserve written communication for any proposed adjustments.
Checklist for Landlords to Prepare Now
To prepare for the new rent increase rules under the Renters’ Rights Act 2025, landlords should take the following proactive steps:
- Audit existing tenancy agreements and remove any rent review clauses that breach the new once-per-year rule.
- Review local market rents regularly using reliable sources to ensure fairness and compliance.
- Keep rent records and communications to evidence transparency if challenged.
- Train letting agents or staff to use the correct notice forms and adhere to statutory timelines.
- Communicate early with tenants about potential rent changes to maintain goodwill.
- Join landlord associations such as the BLA for ongoing updates, legal templates, and compliance support.
Preparation now will help landlords transition smoothly and avoid administrative or legal issues once the new law is entirely in force.
FAQs
How often can rent be increased under the Renters’ Rights Act 2025?
Only once every twelve months, with proper notice and alignment to market rent.
What happens if a landlord raises rent twice a year?
Any second increase within the same 12-month period will be invalid and unenforceable.
Can tenants challenge rent increases?
Yes. Tenants may dispute rent rises through a tribunal if they believe the new rent exceeds market value.
When do the new rent increase rules take effect?
They will take effect once commencement regulations are issued, expected in 2026.
Do landlords still use Section 13 notices?
Until the new prescribed forms are released, landlords should continue using Section 13 for rent increases under existing law.
Conclusion
The new rent increase rules under the Renters’ Rights Act 2025 reshape how landlords manage rental income and interact with tenants. By allowing only one increase per year and linking rent adjustments to market value, the government aims to create a fairer, more predictable rental market.
Landlords who stay informed, maintain proper documentation, and adopt transparent communication will be well-positioned to comply with the new regime and protect their investments.
Our top-read blogs:
Is Commercial Property a Good Investment in England & Wales?
Commercial Property Rent Review Protocol
Investing in Commercial Property vs Residential Property: The Advantages and Disadvantages
The British Landlords Association is a national landlord association, one of the largest in the UK. The BLA is the only landlords’ association in the UK that represents and supports both commercial and residential landlords. Join us now for £89.95!
Useful External Links
https://www.gov.uk/government/publications/renters-rights-act-2025
