With the cost of running a rental property continuing to rise, many landlords are planning to increase rent this year. Rent reviews are an unavoidable part of property management, but they should always be handled with care, particularly with rules changing in 2026.
Up until now, landlords have had flexibility over when and how they increase rent. However, this is set to change in 2026 when new rules surrounding rent increases come into effect under the Renters’ Rights Act.
If you manage a rental property, familiarising yourself with the new rules now will help you to plan and prepare for the changes and avoid disputes or even legal action later down the line.
In this article, we’ll explain what the new rent increase restrictions are, when they’re due to take effect, and what landlords can do to prepare for the changes.
What is the Renters’ Rights Act?
The Renters’ Rights Act represents the biggest reform of the private rented sector in decades. It completed its passage through parliament in October 2025, but many of the changes have not yet come into effect, as the new rules are being rolled out in phases.
The Act aims to give renters greater security and stability by introducing significant changes to eviction processes, tenant rights, and how tenancies work.
In this article, we concentrate on the impact the Act will have on rent increases, but you can learn more about the other key reforms in our article The Renters’ Rights Act and Other 2026 Reforms for Landlords.
How will the Renters’ Rights Act change rent increases?
Currently, landlords can increase rent using several different methods: a Section 13 notice, a rent review clause in the tenancy agreement, or an informal agreement with the tenant. In practice, this flexibility has meant that tenants sometimes face more than one rent increase a year, which can create uncertainty and anxiety.
The new rules will improve stability for tenants by restricting the number of times landlords can increase rent in a year and empowering tenants to challenge unfair increases.
The key changes landlords need to be aware of are:
- Rent can only be increased using a Section 13 notice.
- Rent review clauses will become void.
- Rent can only be increased once every 12 months.
- Rent can be increased to the market rate and no higher.
- Rent cannot be increased during the first year of the tenancy.
- Tenants can challenge unfair rent increases at the First-Tier Tribunal.
- Landlords will need to give at least two months’ notice of an increase.
- The Tribunal will no longer be able to increase rent beyond what the landlord initially proposed.
- The Tribunal will no longer be able to backdate rent increases.
When do the new rules come into effect?
The new rent increase rules are not due to come into effect until 1st May 2026. Until this date, the old rules still apply.
What is a Section 13 notice?
A Section 13 notice is a legal document used by landlords to notify tenants of a rent increase. To serve a Section 13 notice, landlords must fill out the Tenancy Form 4, which can be found on the Gov.uk website.
Landlords can only issue tenants one Section 13 notice each year. Under current rules, landlords must give tenants at least one month’s notice of a rent increase, but the new rules will increase this to a minimum of two months’ notice.
A Section 13 notice provides details of the proposed new rent, the starting date for the new rent, and how to challenge the increase.
After 1st May 2026, issuing a Section 13 notice will be the only method by which landlords can increase rent.
What is meant by ‘market rate’?
If you want to maintain a good reputation as a landlord and a positive relationship with your tenants, then it’s very important to make sure that any rent increases you propose are fair and justifiable. Under the Renters’ Rights Act, this will not only be good practice, it will be the law.
The new rules state that landlords can only increase rent to the market rate, but what exactly does this mean?
In simple terms, the market rate is the “going” or accepted rate. By restricting rent increases to the market rate, the new rules aim to stop landlords from overcharging tenants.
When assessing the market rate, a wide range of factors must be considered, including:
- Location
- Size and type of property
- Condition and age of property
- Local demand and supply
- Furnishings
- The price being charged for comparable properties
Before serving tenants a Section 13 notice, landlords should gather evidence that demonstrates why the increase is fair and reasonable. This evidence will help to back up your case if your tenant decides to challenge the rent increase at a Tribunal.
How can landlords increase rent after the new rules come into effect?
Now that we’ve explored the new rules, let’s look at how rent increases will work in practice.
From 1st May 2026, to increase rent, landlords will need to:
- Increase rent no more than once per year.
- Ensure any increase reflects the market rate.
- Gather evidence to demonstrate that the increase is fair.
- Serve tenants a Section 13 notice.
- Give a minimum of two months’ notice of an increase.
The new process for increasing rent is more structured, predictable, and fair.
Should landlords increase rent before the rules come into effect?
Whether or not it’s a good idea to increase rent now, before the changes come in, depends on your individual circumstances.
If you think you are charging rent below the market rate, have not increased rent in several years, or your costs have increased significantly, then it may be beneficial to increase rent sooner rather than later.
However, if rent is already at or near the market rate, an increase would be hard to justify, or if tenant retention is your priority, there is little point in rushing to increase rent before the changes take effect.
What happens if a tenant challenges a rent increase?
By empowering tenants to challenge unfair rent increases without the fear of negative repercussions, the Renters’ Rights Act helps to protect tenants from unreasonable rent hikes.
The new rules will remove several obstacles that have put tenants off challenging rent increases in the past, helping to hold landlords more accountable.
If a landlord proposes a rent increase and the tenant believes it to be unfair, they can apply to the First-tier Tribunal to challenge it. The Tribunal will then review evidence from both landlord and tenant, including information about local market data and comparable properties, to decide whether the proposed rent is fair and reflects the market value.
If it is found to be fair, the rent increase can go ahead. If not, the Tribunal will set a lower, legally binding rent, and the landlord will not be able to increase it again for another 12 months.
How can landlords protect themselves against disputes?
Handling disputes can be stressful and time-consuming, so you’ll want to do everything you can to avoid one. However, increasing rent from time to time is an unavoidable part of property management, it’s just important to know how to do so fairly.
To avoid a dispute, spend time gathering evidence to support and justify the increase before contacting your tenant. Then, when you have your evidence, communicate clearly with your tenant the reasons behind the increase, e.g., rising costs, market changes, or property improvements, making sure you give them at least two months’ notice of the change.
What can landlords do to prepare for the changes to rent increases in 2026?
The most important thing for landlords to do before the new rules take effect is to make sure that they understand what their obligations are, something we hope this article has helped with!
With rent increases limited to once per year, it may also be useful to build an annual rent review process into your property management strategy to help you stay organised.
Specialist landlord software like PaTMa Property Manager can help you do this. Our software streamlines every aspect of property management, helping landlords to store tenancy agreements and rent histories securely in one central place, set reminders for annual rent reviews and notice deadlines, and log all tenant communications to maintain a complete audit trail.
Book a demo or sign up for a free trial to find out more about how PaTMa can save you time and help you manage your property portfolio more efficiently in 2026.
