By The Posh Group Real Estates | Luxury Property Advisory
Increasing rent is becoming more structured under the Renters’ Rights Act 2025, with new rules that landlords must follow from May 2026.
While rent reviews remain possible, the process is no longer informal or flexible in the way many landlords are used to.
This guide explains exactly how to increase rent legally, what has changed, and how to approach it strategically.
1. The New Rule: Section 13 Becomes the Standard
From May 2026, rent increases in the private rented sector will generally need to follow the statutory process under Section 13 of the Housing Act 1988.
In practice, this means:
- Rent can typically only be increased once per year
- You must serve a formal Section 13 notice
- You must give the tenant at least two months’ notice
- The proposed rent must reflect the current market level
👉 Informal agreements or clauses in tenancy agreements will no longer carry the same weight under the new system.
2. Step-by-Step: How to Increase Rent Legally
Step 1. Review the Current Market
Before proposing any increase, you should:
- Analyse comparable properties in your area
- Consider condition, location, and demand
- Assess whether your current rent is below, at, or above market level
👉 This step is critical; increases must be justifiable.
Step 2. Decide the New Rent Level
Your proposed rent should:
- Reflect fair market value
- Be realistic and defensible
- Avoid excessive jumps that could trigger disputes
👉 A strategic increase is often more effective than an aggressive one.
Step 3. Serve a Section 13 Notice
You must:
- Use the correct prescribed form
- Clearly state the proposed rent
- Provide the correct notice period (minimum 2 months)
👉 Errors in the notice can invalidate the increase.
Step 4. Wait for the Notice Period
During this time:
- The tenant can accept the increase
- Or challenge it through a tribunal
👉 You cannot enforce the increase immediately.
Step 5. Be Prepared for a Tribunal (if needed)
If challenged:
- The tribunal will assess whether the rent reflects market value
- They may approve, reduce, or reject the increase
👉 Importantly:
- Rent increases cannot be backdated if challenged
3. What Has Changed from the Previous System
Under the previous system, landlords often relied on:
- Rent review clauses
- Fixed-term renewals
- Informal agreements
From 2026:
❌ Rent review clauses will no longer apply
❌ Fixed-term leverage is reduced
✔️ Section 13 becomes the primary route
4. Common Mistakes to Avoid
❌ Increasing rent informally
This may no longer be compliant or enforceable
❌ Setting rent above market level
This increases the likelihood of disputes
❌ Serving incorrect notice
Even small errors can invalidate the increase
❌ Waiting too late
Late adjustments can create financial gaps
5. Strategic Considerations for Landlords
Rent increases are no longer just administrative, they are strategic decisions.
Landlords should consider:
- Timing of increases
- Tenant stability vs maximising rent
- Long-term portfolio positioning
- Market trends in their specific area
👉 In many cases, consistency and positioning outperform short-term gains.
6. What This Means for Your Property
The shift to a more regulated system means:
- Less flexibility
- More structure
- Greater importance on planning
Landlords who take a proactive approach will be better positioned to:
✔️ Maintain rental income
✔️ Avoid disputes
✔️ Stay compliant
Need Advice on Rental Positioning?
At The Posh Group Real Estates, we advise landlords across Hertfordshire and North London on how to approach rent reviews strategically under the new regulatory framework.
If you would like a brief, tailored review of your property, including rental positioning and compliance, feel free to get in touch.
Andreea Abalasei
Luxury Property Advisor
The Posh Group Real Estates
📞 +44 7562 141735
✉️ andreea@thepgroupestates.global
🌐 thepgroupestates.global
🔗 Related Reading
👉 Renters’ Rights Act 2025: What Landlords Need to Know Before May 2026 / Leaga de link ul de la prima postare