How Do I Legally Increase Rent Under the Renters' Rights Act 2025?

Raising the rent used to feel like an informal conversation: a friendly email, a quick agreement, a new figure from next month. Since the Renters' Rights Act 2025 came into force on 1 May 2026, that flexibility has gone. There is now a single lawful route to increase rent on a private tenancy in England, and getting the process right matters as much as getting the figure right. This guide walks through how the new system works, what you can and cannot do, and how to keep a good tenant while still keeping the rent in line with the market.

One method, one notice

Under the new rules, the only way to raise the rent on a periodic assured tenancy is by serving a Section 13 notice. The old practice of writing a rent-review clause into a fixed term and simply applying it has fallen away, because fixed-term assured shorthold tenancies have been replaced by periodic tenancies that roll from month to month. There is no longer a fixed end date to renegotiate around, so the statutory notice is your one and only tool.

A Section 13 notice must be in writing and must give the tenant at least two months' notice before the new rent takes effect. The notice sets out the rent you propose, and the tenant then has a window in which to accept it, agree something different, or challenge it. Because the form and the timing are prescribed, a notice that is served incorrectly can simply be invalid, leaving you unable to apply the increase until you start again.

Once a year, and no more

The Act limits rent increases to once in any twelve-month period. You cannot raise the rent twice in a year, and you cannot use a small early increase to test the water and then come back a few months later. This makes planning important: if you intend to review the rent, think about the right level for the year ahead rather than nudging it up in stages.

Combined with the two months' notice requirement, this means the practical lead time on any increase is significant. If you want a new rent to apply from a particular month, count back at least two months for the notice and remember you will not be able to revisit the figure again for a full year afterwards.

Setting a figure you can defend

The Act does not cap how much you can ask for, but it does give the tenant a clear right to push back, so the sensible approach is to propose a rent you could justify by reference to what comparable homes nearby are actually let for. A figure that sits within a competitive market range is far less likely to be challenged, and far easier to defend if it is. An increase that looks arbitrary, on the other hand, invites a tribunal referral and the delay that comes with it.

It is worth gathering a little evidence before you serve the notice: similar properties in the same area, of a similar size and condition, let on similar terms. You do not need a formal valuation, but you should be able to explain, plainly, why your proposed rent is reasonable. A good letting agent will hold this kind of local comparable data and can help you pitch the figure sensibly rather than optimistically.

What happens if the tenant challenges it

If the tenant thinks the proposed rent is too high, they can refer the Section 13 notice to the First-tier Tribunal before the new rent is due to start. The tribunal will look at the open-market rent for the property and decide what is reasonable. Crucially, it cannot set a rent higher than the figure you proposed, so the worst outcome for you is that the increase is reduced or confirmed, never that it is pushed above your own ask.

That safeguard cuts both ways. It means there is no tactical advantage in deliberately over-asking, because the tribunal will only ever bring an inflated figure back down. A measured, evidence-based proposal is more likely to be accepted without challenge and keeps the relationship with a reliable tenant on an even footing.

Keeping the bigger picture in view

Rent setting does not sit in isolation. The same reforms that introduced this process also brought in new responsibilities around possession grounds, the Private Rented Sector Database and redress scheme membership, and it is worth understanding how they fit together. Our overview of what the Renters' Rights Act 2025 means for London landlords sets out the wider framework, and our guide to your legal obligations when letting in London covers the certificates and registrations that should be in order before you think about reviewing the rent at all.

A well-maintained, fully compliant property also strengthens your position on rent. A tenant is far more likely to accept a fair increase on a home that is looked after and managed properly than on one where basic obligations have slipped. Treating the rent review as part of a wider, professional approach to letting, rather than a standalone demand, tends to produce calmer outcomes and longer tenancies.

If you would like a second pair of eyes on a proposed increase, or help serving a Section 13 notice correctly, we are always happy to talk it through. This guide is general information rather than legal or tax advice, and a qualified professional should be consulted on your specific circumstances; choosing the right letting agent to handle the process can take the guesswork, and the risk of an invalid notice, off your plate entirely.