The government has issued guidance on how rent increases will work under the Renters’ Rights Act.
Tenants will be able to challenge rises in court, and Tribunals can defer increases by up to two months in cases of hardship.
Landlords will be limited to one increase per year, and rent review clauses will be banned, as the government claim the new rules will “empower tenants and prevent unscrupulous landlords using rent increases as a backdoor means of eviction.”
How landlords will be able to increase the rent
According to the government guidance, landlords should first discuss any planned rent increases with their tenant.
Landlords will then need to serve a Section 13 notice using Form 4A: Landlord’s notice proposing a new rent, which the government says will be available on GOV.UK from 1st May 2026.
Landlords will need to give two months’ notice before the rent increase takes effect, and they must follow the Section 13 process every time they increase the rent, even if the increase has already been agreed upon with their tenants.
The guidance says landlords will be able to give the tenant notice in person, by post or by email if that’s allowed in the tenancy agreement.
Landlords should know that under assured shorthold tenancies (ASTs) they will not be able to increase the rent in the first year of the tenancy and can only increase rent once a year.
The government guidance says: “The increase will need to be in line with the rent that you would expect to receive if you were to relet the property on the open market.”
Tenants can challenge rent increases
Under the Renters’ Rights Act, tenants will be able to challenge landlords in court if they believe a rent increase exceeds the open market rate. Tenants can ask the First-tier Tribunal to determine what the new rent should be.
The government guidance also confirms rent review clauses will not be permitted under the Renters’ Rights Act, and Tribunals will support tenants by allowing them to defer rent increases by up to two months.
The guidance says “we will reform how the Tribunal works to ensure tenants feel confident in challenging poor practice and enforcing their rights. Currently, tenants face the risk that the Tribunal may increase rent beyond what the landlord initially proposed, we will end this, so tenants never pay more than what the landlord asked for.
We will also end the practice of backdating rent increases, with the new rent instead applying from the date of the Tribunal determination, to ensure tenants are not unexpectedly thrust into debt. And, in cases of undue hardship, we will give the Tribunal the power to defer rent increases by up to a further two months.
To ensure tenants always have a right of appeal, and prevent backdoor evictions, rent increases by any other means, such as rent review clauses, will not be permitted. This will also ensure all parties are clearer on their rights and responsibilities.”
Rent review clauses will no longer apply
The guidance confirms that any tenancy agreement clause that automatically increases the rent will no longer apply from 1st May 2026.
It adds that if landlords serve tenants with notice of a rent increase using Form 4 before 1st May 2026, the increase will still take effect, even if the new rent starts after that date. Tenants who believe the increase exceeds the open market rate will still be able to challenge it.
Landlords will not be able to raise the rent again until at least one year after the last increase took effect.
Although the rent you charge must be in line with local market rates, there will be a range of prices, and you want to be at the top end.
Modern fittings and clean, fresh décor are a standard ‘must’, but what are the extra things you can do to attract tenants who are willing to pay a little extra?
Ensure they can get high-speed broadband
We all rely heavily on the internet these days, and tenants certainly expect to have a decent broadband service. While they will be responsible for paying their own bills (unless you’re letting an HMO, in which case, broadband will be included), it’s worth ensuring that the property has a full fibre connection so that tenants can get a super-fast package. Putting this in your property adverts is likely to attract tenants who can afford to pay a bit more.
Provide modern power points
Now that we all have multiple electronic devices that need charging, make sure your property looks up to date and can handle your tenants’ electrical requirements.
- Replace older plug sockets with USB ports.
- Make sure there are enough charging points in the living room and bedrooms to handle multiple devices charging at once.
- Provide smart power strips for tenants to use, which can help control power usage by automatically switching off devices and appliances when they’re not in use.
Be as eco-friendly as possible
The vast majority of tenants are keen to live more sustainably, so making your rental as green as possible may help attract responsible tenants who might be willing to pay a little extra to help the environment.
- Make sure the property is well insulated.
- Install smart-tech heating and lighting control systems.
- Ensure all lighting is LED.
- Install dual-flush toilets and water-saving showerheads.
- Provide recycling and composting facilities.
Be pet-friendly
In our experience, most tenants with pets are prepared to pay a little more to ensure their pet has a comfortable home. So, even though the Renters’ Rights Bill (England only) gives all tenants the right to request keeping a pet and you won’t be able to refuse without a good reason, where tenants have a choice of a ‘standard’ rental or one that’s a bit more expensive but more pet-friendly, they’re likely to go for the latter.
Some ideas:
- If there’s a garden or other outside area, make sure it’s securely enclosed.
- Have hard flooring to make it easier for the tenant to keep clean.
- Be open to installing a cat or dog flap.
Upgrade the shower
A modern bathroom with a decent shower is high on most tenants’ wishlists. If you’ve had your rental for a few years, you don’t have to refit the entire bathroom, but it’s well worth upgrading the shower.
Consider installing an all-metal integrated shower system, which is durable, corrosion-resistant and designed for frequent use and long-term pressure – ideal for rental properties. And it will look good on your marketing photos!
New guidance for letting agents on rent bidding wars
Officials reveal how the ban will work in practice including how tenants who try to start bidding 'wars' won't covered by rules, but landlords will.
New guidance has been published by the Ministry of Housing, Communities and Local Government for letting agents revealing how its renting reforms are to stop tenancy ‘bidding wars’ once the Renters’ Rights Act begins to be implemented on May 1st this year.
It says that once a property is advertised to rent at a specific price, the landlord or letting agent involved cannot ask for, encourage or accept an offer that is higher than the advertised price.
The rules are to be enforced by local authorities and will include online adverts on portals such as Rightmove and Zoopla, printed particulars, social media posts, emails and texts and even handwritten offers.
CIVIL PENALTY
Landlords and agents who subsequently let a property for more than the initial advertised rent will, even if a tenant has initiated the request to pay more, be liable for a civil penalty of up to £7,000, while landlords and letting agents caught asking for, encouraging or accepting a higher rent a second time within five years can be fined up to £14,000.
The bar is also relatively low for whether a breach has taken place. The guidance says “Rental bidding is a civil matter so local councils must decide on the balance of probabilities whether a breach has taken place. This simply means that they are satisfied that rental bidding is more likely to have occurred than not.”
The Ministry of Housing, Communities and Local Government makes it clear that a breach will have taken place even if, after asking for ‘best and final offers’ for example, no offers are made and the original asking rent is agreed on. It is the ‘asking for offers’ however obliquely worded, that will be deemed to be a request to pay a higher rent.
And the ministry also highlights that landlords or agents cannot accept a higher offer from a tenant, however genuinely made, without breaking the rules – and it will only be the landlord who pays the penalty.
Also, landlords or letting agents hoping to circumvent the rules by not revealing the rent in adverts – which currently often means putting ‘prince on application’ – will also be breaking the rules.