By Allison Thompson, national lettings managing director, Leaders
The Renters’ Rights Bill is currently moving through the House of Lords and is expected to bring wide-ranging changes to the way privately rented homes are managed. Among the most significant are new limits on how and when landlords can increase rent.
These reforms aim to improve transparency and protect tenants from sudden or excessive rent rises, while still allowing landlords to adjust rent in line with the market.
What’s changing?
At the moment, there are several ways to increase rent:
- Through a rent review clause in the tenancy agreement
- By mutual agreement between landlord and tenant
- By serving a Section 13 notice (currently form 4) once every 12 months, giving two months’ notice
Under the proposed legislation, only the Section 13 route will remain valid. This will become the sole legal mechanism for increasing rent, regardless of what is written into the tenancy agreement.
Key proposals in the Bill
- Only one rent increase every 12 months, via Section 13 notice
- Two months’ notice required before any increase takes effect
- All increases must reflect current market rates
- Even if both parties agree to a higher rent, a Section 13 must still be served
- Tenants will be given greater ability to challenge rent rises they believe are unfair
What this means for landlords
These changes will require a shift in how landlords approach rent increases. Rent review clauses in tenancy agreements will no longer be enforceable, and informal agreements will not be valid without a formal Section 13 notice.
Landlords will need to plan rent increases carefully, especially in rising markets where waiting 12 months to adjust rent may affect profitability. It will also become more important to gather clear evidence of comparable market rents, in case a tenant challenges the increase.
If a tenant does challenge the increase:
- The matter will be reviewed by the First-Tier Tribunal
- The rent increase cannot be backdated
- The Tribunal cannot raise the rent above the amount proposed by the landlord
- In cases of financial hardship, the Tribunal can defer the increase by up to two months
For landlords, this means longer lead times and potentially delayed income increases, even where the rent remains below local market averages.
At LRG, we are supporting landlords to review their processes, update tenancy documentation, and plan ahead to ensure rent adjustments remain both fair and compliant.
What this means for tenants
Tenants will benefit from greater certainty around affordability. The Bill ensures that rent:
- Can only be increased once per year
- Must reflect local market conditions
- Cannot be raised without proper notice and a clear legal process
The Tribunal process will also become less risky for tenants. If they dispute an increase, the rent will no longer be backdated, and it cannot be raised above the figure proposed by the landlord.
Tenants will also be able to request that an increase is postponed for up to two months if they are experiencing financial difficulty.
How landlords can prepare now
Although the Renters’ Rights Bill has not yet become law, landlords can take sensible steps now to get ahead:
- Remove any rent review clauses from tenancy agreements
- Keep detailed records of when rent was last increased
- Always use the most recent legal version of the Section 13 notice
- Monitor local rental trends and plan any increases well in advance
To reduce the risk of a dispute:
- Discuss rent increases with tenants before issuing a notice
- Provide comparable market data to support the new rent
- Work with a qualified letting agent who understands both the market and the legal framework
Being open and transparent will help reduce the likelihood of a challenge and ensure that any increase is accepted without delay.