This article continues our ongoing guidance on the Renters’ Rights Act and focuses on rent setting and how annual increases will work once the changes come into force.
Rent increases under the new rules
From 1 May 2026, rent can only be increased once every twelve months and must be carried out using the formal Section 13 process. Landlords must provide at least two months’ notice.
This means that any other rent increase clauses written into tenancy agreements will no longer apply.
Tenants will also have the right to challenge increases they believe are above market level. If challenged, rents will be assessed against comparable properties in the local market.
Why correct pricing matters more
What this means in practice is that pricing correctly from the outset becomes more important than ever.
Well evidenced, market aligned rents are far less likely to be challenged and are more likely to be accepted without delay.
This is not about suppressing rental income. It is about setting rents that are defensible, sustainable and supported by local market evidence.
Protecting income over the long term
For landlords holding property over the medium to long term, this approach often results in more stable tenancies and fewer gaps in rental income.
When rents are aligned with the market, tenants are more likely to remain in place and disputes are less likely to arise.
Preparing for the changes
We are already advising landlords on market positioning and will provide clear guidance ahead of any proposed rent increases.
As further government guidance is released, we will continue to share practical updates so landlords remain well prepared ahead of the key dates.
If you would like us to review your current rent or discuss your future strategy, please get in touch.