Ownership costs for landlords have skyrocketed over recent years due to higher buy-to-let mortgage rates and soaring maintenance costs.
For many landlords raising the rent is not something that they necessarily want to do on a regular basis but many need to do this to turn a profit on their investments.
However, with recent changes to the Renters’ Rights Act raising rent has become slightly harder.
How often can landlords raise rent?
From 1 May 2026 the Renters’ Right’s Act came into play and it has changed how landlords can increase their rent for tenants.
Landlords must now complete and serve Form 4A outlining any changes they wish to make to a tenants rent.
Landlords can only increase rent once per year in line with the open-market rent.
They they can no longer offer or operate assured shorthold tenancies (ASTs) or contractual rent review clauses, which means that automatic annual rent rises can no longer be written into tenancy agreements.
When a landlord is raising the rent, all increases must now follow the statutory Section 13 process and give tenants at least two months to appeal any changes to rent increases.
There is also a ban on using a Section 13 process to increase rent during the first year of the tenancy.
Open market rent, what is it?
Open market rent is the estimated rent a property would bring in if let by a willing landlord to a willing tenant in the current property market.
It is based on recently advertised rents and actual lettings for similar properties nearby, assuming the property is in a similar condition and the tenant is following all lease obligations.
If a landlord is trying to raise rent above the open market value then a tenant can go to a Tribunal to dispute the new rate.
Can tenants dispute a rent raise?
If a tenant agrees to the new proposed rent, then they simply start paying that amount from the next period when rent is due.
However, if a tenant believes that the proposed amount exceeds the open-market rent then they have the right to challenge it by applying to the First-Trier Tribunal.
In this Tribunal a tenant will give their case and the Tribunal will have the power to decide what the new rent should be.
The Tribunal can decide that the rent is too high and bring it down, but it will never propose or agree to a higher rent.
Whilst a rent rise is in dispute the existing rent rate must remain the same. The new rent will only apply from the date of the Tribunal’s decision, preventing backdating.
How we can help
Given these changes, landlords need to think strategically about rent increases each year and understand open market rates and the potential costs of running their portfolio before setting the new rent rate.
