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A Guide to Rent Increases
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Before you start:
Your landlords rights regarding rent increases will depend on the occupation type you have – so you need to work out what this is. You can do this via our guide linked below.
1. Introduction
All occupiers of rented property have to pay rent – it is an essential part of the bargain you have with your landlord. They allow you to live at the property in exchange for rent.
When you sign a tenancy (or licence) agreement and rent a property it will be for an agreed rent. But what if the landlord wants to increase that rent? What are his rights?
This will depend partly on the occupation type you have, which is why you need to check this before reading this article!
Most people reading this article will have an Assured Periodic Tenancy (APT), so we will be looking at this first. However, we will also discuss the rules regarding lodgers and other licensees.
So let’s start by looking at the rules for increasing rent for APTs:
2. Assured tenancies
Before 1 May 2026
1 May 2026 is the date that the Renters Rights Act 2025 came into force, which radically changed landlords’ rights as regards increasing rent.
Before 1 May, there were three ways that landlords could increase rent:
- By Agreement.
- By a ‘rent review’ or ‘rent increase’ clause in the tenancy agreement.
- By the statutory notice procedure
The first two methods for rent increases have now been abolished.
The ONLY way that landlords can now increase rent is via the statutory notice procedure.
3. The statutory notice procedure (1)
The statute in question is the Housing Act 1988 section 13.
This works as follows:
- The landlord serves on you a notice of rent increase. The landlord has to use the proper form – form 4A which is found here.
- The landlord must complete the form properly, providing all the information required, which includes the new rent.
- The form will state when the new rent will take effect – in most cases, this will be after two months. If this form is served on you, there are detailed notes which explain how the notice period is worked out.
- If you want to challenge the new rent, you can refer the notice to the First-Tier Tribunal for review – provided you do this within the two-month notice period.
- The tribunal (if the rent is referred to them) will then consider what rent is appropriate for the property – this will be the ‘rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms’
- However, the tribunal cannot increase the proposed rent, even if the proper market rent is higher than the rent in the notice. They can only review the rent down. So if the market rent is higher than the rent in the notice, the Tribunal will not change it.
- The rent decided on by the Tribunal will then be set as the new rent for the property, and you will be notified accordingly.
- If you do not challenge the proposed rent, it will take effect on the date in the notice. From that day onwards, the proper rent for the property will be the landlords proposed rent.
Reaching an agreement with your landlord
For your rent to increase your landlord has to serve a section 13/Form 4A notice on you first. Otherwise, any rent increase will be invalid.
However, once the notice has been served, your landlord may be happy to negotiate a different rent increase with you.
Particularly, as if you challenge the new rent to the First Tier Tribunal, it will take some time, and it may be several months before they get their new rent. So they may be willing to agree a slightly lower rent increase with you, even if their proposed rent is reasonable, simply to avoid the hassle and delay of a Tribunal challenge.
But before doing this, you should try to find out what a ‘market rent’ for your property is likely to be. So, for example, check similar properties on letting agent websites or on websites such as Right Move or Zoopla. You may also know people who live in similar properties nearby.
If you are unable to reach an agreement with your landlord, then, if you think the rent is too high, you should consider applying to the First Tier Tribunal. Making sure your application reaches the Tribunal within the time limit.
We consider this in the next section.
4. The statutory notice procedure (2)
Challenging the rent increase
In the past, most tenants did not do this as the Tribunal could put the rent up as well as down. However, there is no risk now as the Tribunal can only review the rent downwards.
The rules for this are in section 14 onwards of the Housing Act 1988.
There is government guidance here. Note that you will be challenging the landlord’s proposed rent by asking the Tribunal to make an ‘open market rent determination’.
The form to use is form MR1. This can be used:
- To challenge the initial rent of a tenancy – provided you do this within the first six months
- To challenge a section 13 rent increase, or also
- If you want to challenge the legal validity of the landlord’s notice.
You will find the form here. There is an application fee of £47.
The government guidance and the form are very clear, and you should follow the instructions carefully.
It is particularly important that you send sufficient evidence to the Tribunal for them to make their decision. The government guidance lists things you should include. Make sure you include as many of the things listed as possible.
Remember that the tribunal are JUST considering what the proper market rent should be. They cannot take into account the affordability of the rent for you in your particular circumstances (except by deferring the start date, as discussed below).
Your application MUST reach the tribunal by the end of the notice period in the form 4A. If it is one day late, your application will be dismissed. We know this as there has been a case where this happened.
The date your new rent will take effect:
If you do not challenge the rent, it will take effect either from the date in your landlord’s Form 4A notice, or perhaps on a date agreed with your landlord.
If you challenge the rent, then the new rent will take effect, either:
- On the date in the Form 4A (if the tribunal makes their determination (i.e. makes their decision) before that date)
- On the next rent payment day after the Tribunal makes their determination, or
- If they think the new rent will cause you ‘undue hardship’, then the Tribunal can delay the date the new rent will start by up to a further two months from the date of determination.
You can find out more about the First Tier Tribunal here.
5. In summary - for assured tenants
Things have got much better for assured tenants since the coming into force of the Renters Rights Act 2025 on 1 May 2026.
In particular, you no longer need to worry about landlords evicting you if the rent is not increased to the level that they want. As the no-fault section 21 eviction procedure has been abolished. If your landlord wants to evict you, they will have to find some other reason (which may not be available).
Over time, the government hope that this will slow the rate of rent increases (which has generally been above the rate of inflation for many years). This should gradually make rents more affordable for tenants.
If your landlord tries to increase rent other than via the statutory notice procedure – for example by trying to rely on a rent review clause in the tenancy agreement – you can ignore it. Rents can ONLY be increased via the statutory notice procedure using form 4A.
Let’s now take a look at some of the other occupation types.
6. If you are a 'protected tenant'
If you first moved into your property before 15 January 1989 (which is a very long time ago now) then you will be a protected tenant under the Rent Act 1977.
You may also have inherited a protected tenancy if you were a spouse of the original tenant who has now died.
If you are a protected tenant, you have the right to apply for a ‘Fair Rent’. This will be calculated by the government’s Valuation Office and will then be the only rent which the landlord can charge.
The landlord has the right to apply for this to be reviewed:
- Once every two years, or
- Earlier than this if the landlord has carried out substantial works at the property.
Information about the Fair Rent system is found on the gov.uk website here.
Note that in most situations, rent increases will be limited by The Rent Acts (Maximum Fair Rent) Order 1999. The allowable increase is set by a forumal which roughly equates to about 10%.
A potential problem and possible solution
New regulations on their way will require landlords to upgrade all properties, including those subject to protected tenancies. These are
- The Decent Homes regulations, expected in the 2030’s, and
- The Energy Efficiency upgrades, which it is understood landlords will need to have done by 1 October 2030.
However, if improvements are done by the landlord, this will trigger the right for the landlord to apply for a fair rent increase earlier. It will also be an exception to the Maximum Fair Rent order, so it could cause the rents to increase significantly. As many protected tenants are elderly people on fixed incomes, this could be very serious for them.
A possible solution would be for tenants to arrange to do the upgrade work themselves, as fair rent increases do not take into account the improvements made by tenants.
If you are in this position, it may be worth investigating the grants that are available to allow these works to be done.
If you do not have a registered fair rent
You can apply for one at any stage. You can do this via this page. Follow the link for a rent registration form.
Otherwise, your landlord can ONLY increase your rent by way of a written agreement which clearly sets out at the top, a statement telling you about your rights to apply for a fair rent. This is required under section 51 of the Rent Act 1977.
If this is not done, any rent increase will not be valid, you don’t have to pay it, and you should be able to recover at least part of any extra rent paid by you, provided you do so within the time limit – which in most cases will be two years.
Note that these rules are very old, the legislation wording is complex, and the rules are not well known – even among solicitors. However, if you want some legal advice, the solicitors who provide our telephone advice all specialise in housing law and so should be able to help you.
We have a fairly detailed guide on protected tenancies here.
7. If you have a 'common law' or unregulated tenancy
This will normally be if you are renting accommodation in the same building where your landlord lives (eg if you are renting out a ‘granny flat’ or ‘garden flat’ in their house). Or maybe if you own a limited company which is the tenant.
The rules for these types of tenancy are not set out in any statute (as the rules for protected or assured shorthold tenancies are) but are governed by the underlying ‘common law’.
This means basically that:
- Your landlord will still be able to increase the rent if there is a valid rent review clause in the tenancy agreement, or
- By agreement with you.
However, that’s it. If you stay on as a periodic tenant after the end of the fixed term, the only way the landlord can increase the rent is to try to get you to agree to it.
However, as it is comparatively easy for landlords to evict ‘common law’ tenants, it is best to try to reach some agreement if your landlord wants to increase your rent.
8. If you do not have a tenancy
Here you will likley have a ‘residential licence’ and will have fewer rights generally than tenants. The rights that you have will normally just be those set out in your licence agreement.
Indeed, if you are a lodger and share living accommodation with your landlord – they do not even have to get a court order to evict you, provided this will not be in breach of their written agreement with you.
As discussed for other occupation types above:
- Rent can always be increased (or indeed decreased) by agreement, and/or
- By a valid rent review clause in your agreement.
Note that the unfair terms rules will still apply if you are a licensee, provided you are a ‘consumer’ contracting with a ‘business’. So they may not apply in lodger situations where your landlord does not make a business of renting out rooms.
9. And finally
In all cases, your landlord must have a legal basis for any rent increase and must follow the rules.
If they just contact you out of the blue, telling you, without reference to any rent review clause or using proper paperwork, that they are putting your rent up, this will almost certainly be unenforceable.
If you have a common law tenancy or residential licence, your landlord will, in most cases, be entitled to evict you if you refuse to agree (although it may take some time for the eviction to be processed through the courts). Although, if you are a lodger, they do not need to get a court order at all! So do bear this in mind.
However, if you have an assured periodic tenancy, the new rules introduced by the Renters Rights Act 2025 should protect you.
If you are not sure what the best thing to do is, you can always seek advice from one of the organisations listed here or book a telephone advice call with one of our panel solicitors.
This is the end of this article.
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