Can Landlords Still Raise the Rent? New 2025 Rules Explained
Rent increase rules UK 2025 | Rent caps | Landlord rent rise laws
As 2025 unfolds, landlords across England are grappling with a key question: Can landlords still raise the rent under the new 2025 rules? The recent reforms targeting the rental sector have created confusion, concern, and, in some cases, hesitation among property owners.
With a rise in operating costs, tax pressures, and proposed changes to tenancy structures, understanding your rights as a landlord has never been more critical.
In this detailed guide, we examine the rent increase rules UK 2025, explore whether new rent caps are in force, and clarify what the landlord rent rise laws mean for you.
This article provides a step-by-step breakdown of what’s changing, what remains the same, and how landlords can navigate the evolving regulatory environment without falling foul of the law.
What Are the New Rent Increase Rules UK 2025?
The government’s Renters Reform Bill, expected to be fully enacted by late 2025, introduces a host of legal changes that significantly impact the private rental sector.
Central to these changes are the new rent increase rules, which seek to strike a balance between tenant protection and landlord viability.
Under the new framework:
- Periodic tenancies will become the legal default (abolishing fixed-term assured shorthold tenancies).
- Rent increases will be limited to once every 12 months under Section 13 of the Housing Act 1988.
- Landlords must provide a minimum of two months’ written notice before a rent rise.
- The rent must be fair and comparable to similar properties in the area.
In effect, landlords can still raise the rent, but the process is more regulated, and tenants now have greater recourse to challenge unfair increases.
Are Rent Caps Being Introduced in 2025?
As of 2025, there is currently no formal national rent cap in place across England. However, local authorities are being granted more power to monitor and intervene in areas where rents are seen to be spiralling beyond affordability.
In practical terms:
- The government has not introduced a fixed maximum percentage by which rent can be raised.
- However, the First-tier Tribunal remains available to tenants who wish to challenge rent increases that appear excessive or unjustified.
- The move toward stricter rent controls at the local level means that landlords operating in high-demand cities, such as London, Manchester, or Bristol, may face increased scrutiny.
Landlords should remain cautious and ensure their rent increases are supported by evidence (market rates, property improvements, rising costs), especially in regulated zones.
Why Have These Changes Been Introduced?
The government’s rationale behind the 2025 rent increase rules is straightforward: to create a fairer and more transparent rental system. This comes at a time when the cost-of-living crisis has made housing affordability a key political issue.
The goals of the reforms include:
- Preventing exploitative or unpredictable rent hikes.
- Ensuring tenants can plan for the long term and feel secure in their homes.
- Creating a more transparent legal framework that avoids misunderstandings between landlords and tenants.
But for landlords, the changes also mean new administrative obligations and tighter timelines to follow. Can landlords still raise the rent under the new 2025 rules? Yes—but only within this structured and enforceable process.
Section 13 Process in 2025: What Landlords Must Do
The most important route for raising rent under a periodic tenancy in 2025 is via Section 13 of the Housing Act 1988, which remains valid but is now more prominent due to the abolishment of fixed terms.
To raise rent lawfully, landlords must:
- Use the official Section 13 rent increase form (Form 4).
- Give at least two months’ notice before the new rent is due.
- Ensure that 12 months have passed since the last rent increase (or since the tenancy began).
- Avoid any attempt to contract out of these rules, which is not legally permitted.
If a tenant challenges the rent increase, the First-tier Tribunal will assess whether the proposed rent aligns with similar properties in the area.
Impact of Abolishing Fixed-Term Tenancies
With the 2025 rules pushing all tenancies into periodic format, the timing and method of rent increases become even more vital.
Previously, landlords could renegotiate rent at the renewal of a fixed term. Now, the single permitted rent rise every 12 months under a periodic agreement must suffice. This could require more precise budgeting and forecasting.
Can landlords still raise the rent under the new 2025 rules? Absolutely—but the days of adjusting rent mid-contract or rapidly inflating rates are firmly over.
What Happens If the Tenant Refuses the Rent Increase?
If the tenant disputes the increase within the notice period, they may apply to the First-tier Tribunal, which will determine whether the new rent is fair and reasonable.
This process is:
- Free or low-cost for tenants.
- Based on market evidence, not affordability.
- Binding once a determination is made.
For landlords, this means documentation is essential. Keep evidence of comparable rents, maintenance costs, upgrades made, or market trends to justify your proposal.
Common Mistakes to Avoid in 2025
Landlords should tread carefully to avoid common pitfalls. Here are some of the most frequent errors:
- Issuing the wrong form or failing to use the prescribed format.
- Trying to increase rent more than once within 12 months.
- Giving insufficient notice.
- Raising rent outside of market norms without justification.
These mistakes could lead to invalid increases, disputes, or fines. Always keep written records and issue notices through a verifiable method.
Rent Increases for Existing Tenants vs. New Tenancies
One of the grey areas many landlords are concerned about in 2025 relates to rent hikes for new tenants.
The law is clear:
- Rent for new tenancies can still be set based on market rates.
- The rent increase rules UK 2025 apply only once a tenancy begins.
Therefore, if a tenant leaves and a new one moves in, the Landlord is free to re-list the property at a new rate. However, within tenancies, the rent must follow the 12-month rule and notice process.
This is especially useful for landlords balancing long-term tenants and rising costs. But it also raises ethical and practical questions about affordability, fairness, and reputational risk.
Tenant Protections Strengthened in 2025
Beyond rent control, the 2025 reforms introduce broader tenant protections that intersect with rent rise policies.
These include:
- No-fault evictions under Section 21 are being scrapped.
- Standardised notice periods across various tenancy-related matters.
- More substantial penalties for retaliatory eviction attempts following a rent dispute.
In this context, landlords must approach rent increases with careful planning, fairness, and clear communication to ensure a positive outcome. Aggressive tactics can backfire legally and reputationally.
Financial Planning for Landlords: What to Do Now
With inflation, increased maintenance costs, and higher interest rates, rent increases are often necessary to maintain financial stability. However, landlords should now incorporate the following into their annual planning:
- Budget for one legal rent increase per year.
- Review local market rents quarterly to stay competitive and compliant.
- Consider value-added improvements to justify rent adjustments.
- Maintain all tenant correspondence in a professional and thoroughly documented manner.
The key to success lies in aligning legal compliance with robust business practices. Can landlords still raise the rent under the new 2025 rules? Yes—but those who fail to adapt could face financial strain or legal challenges.
Landlord Advice for 2025 Rent Rises
- Start planning early—don’t wait until the rent needs to rise.
- Use professional letting agents or landlord associations for compliance support.
- Be transparent with tenants—explain why the rent is increasing and provide comparable data.
- Document everything.
Remember: long-term tenants often cost less than frequent turnover, so balance profitability with tenant retention.
Final Thoughts
2025 brings a new era for the UK rental market. The reforms are designed to ensure stability, but they also limit some traditional landlord flexibilities. Staying informed, compliant, and fair is no longer optional—it’s essential.
So, can landlords still raise the rent under the new 2025 rules? Yes, but only if they adhere to the established legal framework.
FAQs
Can I raise the rent more than once per year?
No. Under the 2025 rules, landlords are restricted to one rent increase every 12 months for each tenancy.
What if the tenant refuses to pay the new rent?
The tenant can challenge the increase through the First-tier Tribunal. If the tribunal rules the increase fair, the new rent is enforceable. If not, the rent remains unchanged.
Do these rules apply to new tenants?
No. Landlords can set new market-based rents when advertising to new tenants. These rules only apply once a tenancy has begun.
Am I allowed to increase the rent during a fixed-term tenancy in 2025?
Fixed-term tenancies are being phased out. If one still exists, any increase must be agreed upon in the tenancy agreement or through mutual consent.
What happens if I issue the wrong rent increase form?
If you do not use the correct Section 13 form, the rent increase is invalid. You’ll need to reissue with the proper documentation and notice.
Will rent caps be introduced in the future?
There’s currently no national cap, but local authorities may enforce rent control measures in specific areas. Stay updated on regional developments.
Can I negotiate a rent increase directly with the tenant?
Yes. If both parties agree to a new rent and it is recorded in writing, a formal Section 13 notice is not required. However, it is still best practice to document this properly.
Can tenants appeal a rent increase even if it follows the rules?
Yes. Tenants can always appeal through the tribunal if they believe the new rent is above market value, regardless of procedural compliance.
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