Decoding the Renters’ Rights Act – Changes to Rent Increases
From 1 May 2026, the first phase of the Renters’ Rights Act will come into force across England, introducing significant changes to how rents can be increased in the private rented sector. For landlords, the key change is that rent increases will become more regulated and must follow a formal legal process.
We look at the key aspects of these changes below:
1. Rent can only be increased once per year
From 1 May 2026, landlords will only be able to increase the rent once every 12 months. This applies to both new and existing tenancies once they fall under the new legislation. This means you cannot increase the rent more frequently, even if the tenancy agreement previously allowed it.
2. Rent increases must be served using a Section 13 notice
Under the new rules, the only legal way to increase rent will be by serving a Section 13 Notice. Rent review clauses written into tenancy agreements will no longer be valid for initiating rent increases after the Act comes into force.
3. A minimum of two months’ notice is required
Landlords must give tenants at least two months’ notice before the new rent can take effect. The new rent usually begins from the next rental period after the notice expires.
4. Rent must reflect the open market level
Any increase must be in line with the open market rent for similar properties. If the rent increase is considered excessive, tenants have the right to challenge it.
5. Tenants can challenge increases at tribunal
Tenants can refer the proposed rent to the First‑tier Tribunal (Property Chamber) if they believe the increase is above market value. The tribunal will then determine what the correct market rent should be. During the process, tenants will normally continue paying the current rent until a decision is made.
With these changes approaching, landlords should review their existing tenancies to consider if the property is currently achieving market rent and plan annual reviews. If you have any questions in relation to these changes call Mundys lettings on 01522 556099.