Setting Rents Just Got More Complicated – Are You Up to Speed with the Changes?
If you're a landlord in England, the rules governing how you set, review, and increase rents have changed significantly. The Renters' Rights Act has introduced a raft of reforms that affect the entire rental process – and understanding these changes is no longer optional. Whether you manage one property or an entire portfolio, staying compliant now requires a clear grasp of what the new legislation demands. Here's what every landlord needs to know.
What Is the Renters' Rights Act?
The Renters' Rights Act represents one of the most significant overhauls of the private rented sector in decades. Designed to rebalance the relationship between landlords and tenants, the legislation introduces sweeping reforms that cover everything from tenancy agreements and eviction procedures to – crucially – the way rents are set and changed over time.
For years, landlords operated under a relatively flexible framework when it came to rent reviews. That flexibility has now been substantially curtailed. The new rules are intended to give tenants greater security and predictability, but the knock-on effect for landlords is that the administrative and legal requirements around rent have become considerably more involved.
The End of Fixed-Term Tenancies as Standard
One of the most headline-grabbing elements of the Renters' Rights Act is the abolition of fixed-term assured shorthold tenancies. Under the new system, virtually all tenancies become periodic from the outset. This has a direct impact on rent setting because landlords can no longer rely on tenancy renewal as a natural moment to reset rent to a new agreed level.
Previously, when a fixed-term tenancy ended and a new one began, landlords could simply agree a new rent in the new contract. That mechanism is gone. Landlords must now use a formal, prescribed process to increase rents – and there are strict rules about how often they can do so and how much notice they must give.
How Rent Increases Now Work
Under the Renters' Rights Act, landlords are limited to one rent increase per year. This cap applies across all periodic tenancies and is non-negotiable. To implement an increase, landlords must use a Section 13 notice – a formal written notice that sets out the proposed new rent and gives the tenant a minimum of two months' notice before the increase takes effect.
This is a significant procedural change. Informal rent reviews, verbal agreements to increase rent, or any attempt to raise rents through a new tenancy agreement are no longer valid routes. The Section 13 process must be followed precisely, and any errors in the notice can render it invalid, meaning landlords may have to start the process again and wait a further two months.
Tenants Can Now Challenge Rent Increases
Perhaps one of the most consequential changes for landlords is the strengthened right for tenants to challenge rent increases they consider above market value. Under the new framework, tenants can refer a proposed rent increase to a First-tier Tribunal. The Tribunal will then assess whether the proposed rent is in line with the open market rate for comparable properties in the area.
Importantly, if a tenant makes a referral, the rent increase is paused until the Tribunal reaches a decision. This could mean landlords face a wait of several months before any increase takes effect. If the Tribunal determines that the proposed rent is above market rate, it can set a lower figure – and that lower figure becomes the legally binding rent going forward.
This means landlords must now be prepared to justify any proposed increase with evidence. Knowing what comparable properties in the area are achieving in rent is no longer just useful background knowledge – it could be essential evidence if a Tribunal challenge arises.
What Landlords Must Do Now
Given the scale of these changes, there are several practical steps landlords should take immediately to ensure they are on the right side of the new rules.
- Review your tenancy agreements: Ensure all tenancy agreements reflect the new periodic structure and do not contain provisions that are no longer lawful under the Renters' Rights Act.
- Understand the Section 13 process: Familiarise yourself fully with the correct procedure for issuing a Section 13 notice. A mistake here can delay your rent review by months and cost you income.
- Document your rent rationale: Before proposing any increase, gather evidence of comparable rents in your area. This will help you set a defensible figure and prepare for the possibility of a Tribunal challenge.
- Plan your rent reviews in advance: With only one increase permitted per year, timing matters. Missing your window could mean waiting a further twelve months before you can raise the rent again.
- Seek professional advice: The legislative landscape has changed considerably, and the consequences of getting it wrong are real. Speaking with a letting agent or property solicitor familiar with the Renters' Rights Act is strongly recommended.
The Bigger Picture for Landlords
The Renters' Rights Act signals a fundamental shift in how the private rental market operates in England. The changes to rent setting are just one piece of a much larger reform package, but they are among the most practically impactful for day-to-day property management. Landlords who adapt quickly, invest time in understanding the new rules, and seek expert guidance where needed will be best placed to continue running profitable, compliant rental businesses.
Those who ignore the changes or assume that informal approaches will still fly are taking a significant risk – not just of financial loss, but of legal exposure too. The Renters' Rights Act is not going away, and the time to get up to speed is now.
Stay Informed and Stay Compliant
The rental market is evolving rapidly, and the Renters' Rights Act represents just one chapter in an ongoing story of legislative change. Keeping yourself informed, maintaining accurate records, and working with professionals who understand the new landscape are the three most important things you can do as a landlord right now. The rules have changed – make sure your practice has too.