With the majority of the Renters’ Rights Act 2025 coming into force in May 2026 and following our last publication about the upcoming abolition of Assured Shorthold Tenancies and no-fault evictions, we look at another key change set to come into play in the residential property market when the Act comes into force – the new process of increasing rent.
What are the current rules?
Under current legislation, landlords can implement rent increases in several ways: –
1) Relying on a rent review clause in the tenancy agreement.
2) Agreeing the increase with the tenant or a new tenancy agreement containing the increased rent figure.
3) Following the Section 13 Housing Act 1988 notice process.
What are the new rules?
In a drastic shake-up, landlords will only be able to rely on a new Section 13 procedure, where they will be restricted to one annual rent increase when the Act comes into force.
Upon receipt of the Notice, the tenant will have a 2 month notice period to consider the rent increase and either accept the landlord’s proposals or decline it and make an application to the First-tier Tribunal (Property Chamber) requesting a determination of the market rent, based on the market value of the property and other factors, such as, the state of the property.
The current backlogs in the Tribunal may cause concern to landlords because, under the new Section procedure, the new rent cannot be applied until the date of the Tribunal’s determination, which could take several months.
In addition, there is potential for tenants to apply to the Tribunal to deliberately delay what may otherwise be a fair rent increase.
I am a landlord, what do I need to do next?
Landlords can still use the current rent increase mechanisms until the relevant parts of the Act come into force in May 2026. Therefore, landlords contemplating rent increases are advised to consider acting now before the new Section 13 procedure comes into force, and reviewing their current tenancy agreements to ensure that they correlate with the upcoming changes to the residential property market.
Talk to our Dispute Resolution team in Oldham
If you would like to speak to Richard Dobson Mason, Jackie Martin, or anyone else about Dispute Resolution, please contact our Office on 01457 761 320, and you will be directed to the solicitor who is best equipped to deal with your legal matter.