How to Handle a Rent Increase Under the New Rules

Version 1.0 · Published 2 Apr 2026

How to Handle a Rent Increase Under the New Rules

Quick Reference

Essential Points for Letting Agents:

From 1 May 2026: All rent increases on periodic assured tenancies must follow formal Section 13 notice procedures only—no informal agreements
Tenants can challenge without risk: The tribunal can no longer set rent higher than proposed or backdate increases, and Section 21 is abolished
Expect more challenges: With risks removed, tribunal applications may increase significantly from the current baseline of ~1,500 per year
Update your systems now: CRM triggers for rent reviews must work for periodic tenancies, not just fixed-term renewals
Document everything: Proper Section 13 notices and clear audit trails are essential for compliance and enforcement

Overview

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025, with the first phase of reforms taking effect on 1 May 2026. Among the most significant operational changes for letting agents is how rent increases must be handled under the new periodic assured tenancy regime.

With the abolition of Section 21 'no-fault' evictions and the end of assured shorthold tenancies, all new and existing tenancies will become periodic assured tenancies. This fundamentally changes how landlords can increase rent and how tenants can challenge those increases.

This help sheet provides practical guidance on managing rent increases compliantly from 1 May 2026 onwards.

Key Changes to Rent Increases

End of Informal Rent Agreements

Current practice (before 1 May 2026):
- Landlords commonly propose rent increases in exchange for renewing a fixed-term tenancy
- Many tenants accept increases they cannot afford to secure another year of stability
- Informal agreements are enforceable once the tenant pays the new rent
- Tenants who agree to an increase cannot subsequently challenge it

From 1 May 2026:
- All tenancies become periodic assured tenancies
- Landlords can only increase rent using the formal Section 13 notice procedure
- The legislation does not prevent informal discussions, but any agreement must still be formalised through Section 13
- Tenants retain the right to challenge even after informal agreement

Removal of Tenant Risks When Challenging

Why tenants rarely challenge now:

Under current rules, only approximately 1,532 tenants applied to the tribunal for a rental determination between 2024 and 2025. This low number reflects three major deterrents:

Tribunal can set rent higher than the landlord's original proposal
Increases are backdated to the Section 13 notice expiry date
Risk of Section 21 eviction after challenging

From 1 May 2026:

The Renters' Rights Act eliminates all three risks:
- Tribunal cannot set rent above the landlord's proposed amount
- Backdating rules are reformed
- Section 21 is abolished—landlords can only evict for specified legal grounds

Expected Impact: More Tribunal Challenges

With risks removed, tenant confidence in using the tribunal system is expected to increase. While the tribunal process still requires time and effort (which may limit overall impact), agents should anticipate:

Higher volume of rent increase challenges
Greater scrutiny of proposed increases
Need for robust justification and market evidence
Longer resolution timelines for disputed increases

What This Means for Letting Agents

Operational Changes Required

1. Formal processes only
- Every rent increase must follow Section 13 procedures precisely
- No shortcuts or informal arrangements
- Written notices must be accurate and compliant

2. Evidence-based increases
- Maintain comprehensive market rent data for each property
- Document comparable properties and rental trends
- Prepare justification files in case of tribunal challenge

3. Landlord expectations management
- Educate landlords that informal agreements no longer suffice
- Explain increased likelihood of tenant challenges
- Set realistic expectations about achievable increases

4. Timeline planning
- Section 13 notices require proper notice periods
- Factor in potential tribunal delays
- Plan rent reviews well in advance

Systems and Technology Updates

Many existing CRM and property management systems are built around fixed-term tenancy cycles. Review your systems now to ensure:

Rent review dates are tracked for periodic tenancies
Automated reminders trigger at appropriate intervals
Section 13 notice templates are updated and compliant
Rent-in-advance calculations work for periodic tenancies
Compliance alerts don't rely on fixed-term expiry dates

Action point: Audit your CRM triggers and workflows before 1 May 2026 to identify and fix any dependencies on fixed-term tenancy structures.

Team Training Requirements

Different roles require tailored guidance:

Role	Key Training Needs
Negotiators	How to discuss rent increases with tenants; managing expectations about challenges
Property Managers	Section 13 procedures; evidence gathering; tribunal processes
Administrators	Accurate notice preparation; deadline tracking; documentation standards
Compliance Leads	Full legislative requirements; enforcement risks; audit procedures

Practical Steps for Agents

Before 1 May 2026

Review your portfolio data
Identify all tenancies and their rent review dates
Gather market evidence for properties due for review
Update landlord contact preferences
Update templates and procedures
Ensure Section 13 notice templates are current
Create evidence-gathering checklists
Develop landlord communication templates
Train your team
Conduct role-specific training sessions
Provide written guidance documents
Test knowledge through scenarios
Audit your systems
Test CRM rent review triggers
Verify periodic tenancy workflows
Fix any fixed-term dependencies

From 1 May 2026 Onwards

For every rent increase:

Gather evidence
Research comparable properties (location, size, condition, amenities)
Document current market rents
Consider property improvements or changes since last review
Consult with landlord
Present market evidence
Recommend appropriate increase
Explain challenge risks and tribunal process
Serve Section 13 notice
Use compliant template
Calculate correct notice period
Serve by approved method
Retain proof of service
Monitor and respond
Track notice expiry dates
Be prepared for tenant challenges
Maintain evidence file
Respond promptly to tribunal applications

If a Tenant Challenges

Don't panic—challenges are now a normal part of the process
Review your evidence—ensure it's comprehensive and current
Engage professionally—work with the tribunal process
Learn from outcomes—use decisions to inform future increases

Enforcement and Penalties

While the source material doesn't specify penalties for improper rent increase procedures, the Act introduces:

Enhanced local authority enforcement powers (in force from 27 December 2025)
Powers to enter premises and seize documents during investigations
Expanded rent repayment orders for various breaches
Civil penalties for multiple offences

Agents should assume that improper rent increase procedures could trigger enforcement action, particularly if they form part of a pattern of non-compliance.

Frequently Asked Questions

Q: Can we still discuss rent increases informally with tenants?

A: Informal discussions are not prohibited, but any agreement must be formalised through a proper Section 13 notice. The tenant retains the right to challenge even after informal agreement.

Q: What happens to rent increases already agreed before 1 May 2026?

A: Transitional provisions will apply. Check the specific commencement regulations for your situation. Generally, increases agreed under fixed-term tenancies signed before 1 May 2026 should be honoured.

Q: How often can we increase rent?

A: Section 13 procedures include minimum time periods between increases (typically 52 weeks for periodic tenancies). Check the specific notice requirements for your tenancy type.

Q: What if the tribunal sets rent lower than current rent?

A: This is possible if the tribunal determines the current rent is above market rate. This underscores the importance of evidence-based increases and market-aligned rents.

Q: Should we increase rents more cautiously now?

A: Yes. With easier challenges and no risk to tenants, modest, well-evidenced increases aligned with market rates are more likely to succeed than aggressive increases.

Q: Do these rules apply to all tenancies?

A: From 1 May 2026, the rules apply to all periodic assured tenancies in the private rented sector in England. Social housing providers have a later implementation date (2027).

Resources and Support

Propertymark Members should:
- Check communication preferences for legislative updates
- Access the Renters' Rights Act Toolkit (four guides available)
- Watch the full webinar recording on operational readiness
- Review systems, payment procedures and portfolio data now

All Agents can:
- Visit the government's "Renting is Changing" website for official guidance
- Monitor Shelter Legal for updated tenant rights information
- Consult The Property Ombudsman for dispute resolution guidance
- Seek legal advice for complex situations

Conclusion

The shift to formal Section 13 procedures for all rent increases represents a significant operational change. Agents who prepare early—updating systems, training teams, and establishing robust evidence-gathering processes—will be best positioned to manage rent increases compliantly and confidently from 1 May 2026.

The removal of tenant risks when challenging increases means the tribunal system will play a larger role in rent determination. Professional, evidence-based approaches to rent increases will be essential for successful outcomes.

Start your preparation now. With less than two months until implementation, early action on systems, processes and training will ensure a smooth transition.

This help sheet is based on information current as of March 2026. Always verify specific requirements with current legislation and seek legal advice for complex situations.