In England, there is no fixed legal cap on how much a private landlord can raise the rent on an assured shorthold tenancy. Landlords can technically increase rent by any amount, as long as the increase is fair and realistic, meaning it aligns with comparable market rents in the area. However, this principle doesn’t mean landlords can act without rules. There are clear regulations governing how often and when rent increases can happen, ensuring tenants are protected from sudden or unreasonable hikes.
For tenants on a fixed-term tenancy, rent generally cannot be increased during the agreed term unless the tenancy agreement contains a valid rent-review clause. In contrast, tenants on a periodic tenancy—for example, rolling month-to-month agreements—may face rent increases, but these can only occur once every 12 months. Landlords must also provide proper written notice of any increase. Currently, the required notice period is one month, but this will extend to two months under the new Renters’ Rights Act 2025.
A key principle guiding rent increases is that they must reflect the open-market value of similar properties in the area. Landlords cannot simply raise rent arbitrarily; the new amount should be justifiable compared to comparable properties nearby. Tenants who believe the proposed increase is unreasonable have avenues to protect themselves. They can challenge the rise formally using a Section 13 Notice, which may ultimately be reviewed by the First-tier Tribunal to ensure the increase aligns with market standards.
Older tenancies, sometimes referred to as “regulated” or “protected,” have additional safeguards. For these properties, rent may only be increased up to a registered maximum, which is determined by the state. Such tenancies are now rare but remain subject to strict rules. This distinction highlights the importance of knowing your tenancy type, as it directly affects how rent can lawfully change.
The Renters’ Rights Act (RRA) 2025, potentially, coming into effect in 2026, represents the most significant overhaul of the private rental sector in decades. It introduces major reforms that impact both landlords and tenants, particularly in how rent increases are handled.
Whilst it would not be unreasonable to suggest in increase in line with the consumer price index, under the new legislation, all rent increases must follow a formal statutory process using a Section 13 Notice, rendering old rent-review clauses in tenancy agreements void. Landlords are restricted to raising rent only once per year, and they must provide tenants with at least two months’ written notice before the increase takes effect. Importantly, the new law mandates that any proposed rent rise must not exceed the local market rate for similar properties. Tenants who believe an increase is excessive can challenge it via the First-tier Tribunal, where the tribunal will ensure the new rent does not surpass what the property would reasonably earn on the open market.
Beyond rent increases, the RRA 2025 brings sweeping changes. Fixed-term tenancies will default to open-ended periodic tenancies, giving tenants greater stability. “No-fault” evictions under Section 21 will be abolished, meaning landlords can only regain possession under clearly defined statutory grounds, such as rent arrears or the intention to sell. The Act also curbs practices like bidding wars and demanding excessive upfront rent, ensuring rental arrangements are fairer. Additional protections for tenants include anti-discrimination measures, rights for pets, and improved housing standards in line with minimum quality requirements.
For tenants, the RRA 2025 offers far greater predictability and fairness. Rent increases are now more transparent, must follow clear procedures, and are legally constrained to once per year. Tenants also gain a stronger ability to contest any increase they believe is unjustified. This ensures that tenants are not subjected to sudden, steep rent hikes and that the rent they pay reflects the true market value of their home. Understanding these protections is crucial to safeguarding one’s housing security.
Landlords, meanwhile, face a shift in how they manage tenancies. The removal of rent-review clauses limits flexibility, meaning all rent increases must go through the statutory Section 13 process. Landlords must justify proposed increases by demonstrating alignment with market rates and provide appropriate notice periods. While this introduces more administration, it also reduces the risk of disputes and legal challenges. By adopting transparent, compliant strategies, landlords can maintain positive relationships with tenants while still achieving reasonable rental returns.
With the introduction of the RRA 2025, rent increases are likely to become more moderate and potentially more regular. Landlords may adjust their strategies to account for the once-per-year limit and notice requirements, while tenants will enjoy enhanced protections and clarity about their rights. Overall, the reforms aim to balance landlord income potential with tenant security, creating a fairer, more stable rental market. Whist long term tenants who have let the same property for years at below market rates may be hit by jumps in their rent under new proposed legislation.
