The first phase of the Renters' Rights Act came into effect on 1 May 2026, reforming the private rental sector. This guide covers what the changes mean for Clients in relation to rent increases.
How the Act Changes Rent Reviews
All tenancies are now periodic (replacing fixed-term ASTs), so landlords can no longer renegotiate the rent at renewal in the same way as previously.
Rent increases must follow the Act's procedure:
- Landlords must have concrete real evidence to justify any increase
- Permitted only once every 12 months
- Landlords must serve a Section 13 notice giving two months' notice
- No fixed cap, but the increase must not exceed open-market value
- Tenants may challenge the increase via the new First-tier Tribunal
How Increases Must Be Processed
Rent review clauses, index-linked uplifts, stepped rent provisions and addendums are NOT allowed.
A Section 13 notice with Form 4A is now the only lawful method, and must include:
- Landlord and tenant names and addresses
- Current and proposed rent
- Start date of the new rent
- A note of the tenant's rights
The proposed rent must reflect a fair, open-market rent — particularly relevant in London, where rents exceed the national average.
Tenant Challenges
Tenants can apply to the First-tier Tribunal if they believe an increase is unreasonable, provided they first confirm:
- Two months' notice was given
- A valid Section 13 notice with Form 4A was served
- Rent has not been increased within the last 12 months
Tenants are advised to raise concerns with the landlord directly before applying to the tribunal. Landlords should be prepared to support an increase with comparable rents, evidence of property upgrades, or local market data.
Strategic Rent Reviews for Landlords
The new Act does NOT prevent a landlord from increasing rental income.
Here’s our recommendations on the best practice:
- Conduct annual market assessments – Benham and Reeves work with the largest rental data company to ensure we have the latest achieved rents
- Benchmark against comparable local properties
- Document upgrades and renovations
- Apply gradual, rather than sudden, increases
Best Practice
- Give tenants sufficient notice (ideally more than the required 2 months)
- Justify the basis for the increase
- Provide evidence of comparable local achieved rents
Retaining reliable tenants is often more valuable long-term than maximising short-term rental growth.
For Overseas Landlords
Benham and Reeves provides a full
lettings and
management service to help overseas landlords remain compliant with the
Renters' Rights Act.
