A new approach to setting rent after the Renters’ Rights Act

With the Renters' Rights Act now in force, landlords can no longer rely on rent review clauses, informal agreements or quarterly rent periods to manage increases.

Rent setting has become a more formal, evidence-based process and landlords who do not adapt risk delay, dispute and lost income.

The rules landlords now have to work within

Since 1 May 2026, rent can only be increased once every twelve months, using a formal Section 13 notice, and any existing rent review clause in a tenancy agreement is void.

Landlords must now give tenants at least two months' written notice before an increase takes effect.

Rent periods themselves have also changed and under the new assured periodic tenancy system, a rent period cannot be longer than one calendar month, so any agreement that previously specified quarterly or six-monthly rent was automatically adjusted to monthly from 1 May 2026.

Crucially, any increase must reflect what a landlord could reasonably expect to achieve if letting the property to a new tenant on the open market.

There is no rent cap, but the days of applying a fixed annual percentage increase without reference to comparable local lettings are over.

Why evidence now matters more than ever

Tenants have a clear route to challenge a rent increase they believe is above market rate by applying to the First-tier Tribunal, and the barriers to doing so are low.

The application fee is modest, the existing rent is frozen at its current level until the Tribunal reaches a decision and a challenge  will cost the tenant little even where the increase was entirely reasonable.

The Tribunal cannot set a rent higher than the amount the landlord originally proposed and any new rent will only take effect from the date of the Tribunal's determination rather than the date the landlord intended.

Where a tenant can show undue financial hardship, the Tribunal can also defer implementation by up to a further two months.

This changes things considerably for landlords and an increase pitched too high risks being delayed by months while a Tribunal case is heard.

So, building a robust, defensible case for the proposed rent increase before serving notice is now essential rather than optional.

Building a defensible rent review

A well-evidenced rent increase should draw on close, recent comparables rather than broad regional averages, reflecting the specific condition, location and features of the property being let.

Here are some steps to consider before your next rent review:

• Gather evidence from recently let comparable properties in the immediate area.
• Keep a clear record of how the proposed rent was calculated, in case of a Tribunal challenge.
• Time notices carefully around the twelve-month cycle to avoid falling out of step with the market.
• Consider whether a modest increase is more likely to hold than an ambitious one.

Landlords managing larger portfolios are increasingly turning to agents and property managers for structured rent review packs, precisely because a documented, evidence-led approach both supports the rent proposed and creates a paper trail if it is ever questioned.

Looking ahead

Rent setting under the Renters' Rights Act is no longer a purely commercial decision. It is now a compliance exercise as much as a pricing one and landlords who treat it that way will be far better placed to secure the rent they are entitled to without unnecessary delay.

How can we help?

The Renters' Rights Act has introduced significant changes for landlords, making rent reviews a compliance issue as well as a commercial decision. Understanding the new requirements and ensuring that rent increases are properly evidenced can help minimise disputes and protect rental income.