ANNUAL RENT INCREASES (SECTION 13)

Under the current rules, landlords of periodic tenancies can increase rent by mutual agreement or by serving a Section 13 notice under the Housing Act 1988. This mechanism allows a landlord to propose a new rent, provided a minimum notice period is given and certain procedures are followed. However, misuse and inconsistent application of this power have led to complaints of unpredictable or excessive rent hikes - often with little recourse for tenants.

The Renters Rights Bill introduces stricter controls around this process. Rent increases will be limited to once per year, and the only valid route to impose an increase will be via a formal Section 13 notice. The notice must be served using the official government-prescribed form, with a minimum of two months' notice before the new rent takes effect.

Tenants will have the right to challenge rent increases at the First-tier Tribunal if they believe the proposed amount is excessive or not in line with market value. The Tribunal will assess whether the new rent reflects a fair market rate based on comparable properties in the area. It will not take into account the tenant’s ability to pay or the landlord’s financial circumstances - only local market evidence will be considered.

For landlords, this means increases must be carefully justified and backed by accurate comparables. Arbitrary or poorly evidenced rent increases risk being rejected, resulting in delays and reputational damage. It also places greater importance on conducting regular market appraisals, maintaining clear records of comparable rents, and timing reviews strategically.

It’s worth noting that rent cannot be increased during a fixed-term tenancy unless explicitly allowed in the tenancy agreement. With fixed terms being phased out under the same Bill, almost all increases in future will need to follow the Section 13 process.

As a result, rent setting will need to become part of a structured, annual planning cycle, rather than an ad hoc decision. Landlords should build in routine rent reviews, ensure communication with tenants remains transparent, and be ready to defend any increase in a Tribunal setting if necessary.

We can assist landlords with drafting compliant Section 13 notices, gathering local market data, and preparing responses to any Tribunal challenges - helping protect your income and reputation.

In Summary:

• Rent increases will be limited to once per year per tenancy.
• All increases must be made via a formal Section 13 notice.
• You must provide at least two months’ notice using the correct form.
• Tenants can challenge rent increases at the First-tier Tribunal.
• Increases must reflect market conditions, not personal factors.
• Poorly evidenced or excessive increases may be rejected.
• Rent reviews must now be part of a planned annual strategy.
• We can support you with compliant rent reviews, local comparables, and Tribunal preparation.