Over 4.4 million UK households rent from private landlords.
For many, it provides flexibility and affordability.
However, one aspect of this market that can be difficult for tenants and landlords is rent increases.
So, how much can a landlord Increase rent? And what can you do if I feel the increase is unfair?
Read on to find out.
The Renters rights’ bill has changed a lot
The Renters’ Rights Bill, currently due to be introduced in late 2025, will change the rules around rent increases.
It requires landlords follow several rules around rent increases, including:
1. Limits on rent raising frequency
Landlords will only be allowed to raise rent once a year.
2. Notice period
Landlords must now give tenants’ at least two months’ notice before raising rent.
3. Market rate requirement
All rent increases must be to the ‘market rate’ – i.e., what the property would fetch if it were newly listed for rent.
4. No rent review clauses / automatic increases
The Bill intends to abolish rent review clauses and automatic rent increases that were previously often built into tenancy agreements. A formal process will be required from now on.
5. Deferred increases in cases of hardship
In cases where tenants can prove rent increase would cause ‘undue hardship,’ tenants can defer increase by up to 2 months. They must prove this claim to a tribunal if the landlord disputes it.
Tenants’ right to challenge
If a tenant believes their landlord has violated any of the above requirements, they will have the right to challenge it at the First-tier Tribunal (or similar body).
The Tribunal will determine whether the proposed raise in rent is legal or not.
The Tribunal cannot set a rent higher than what the landlord has proposed in their notice (presuming they issued one).
How landlords raised rent in the past
Previously, there were no definite legal limits for rent rises that applied nationally.
However, there were some general guiding principles that it was the landlords’ responsibility to follow.
Rent increases needed to be fair and realistic. And the type of tenancy agreement in place made a difference.
For example, Assured shorthold tenancies (AST) were the standard agreement for most tenants. There was no limit on how often landlords can raise the rent.
However, all of this is set to change with the introduction of the Renters’ Rights Bill.
Why landlords raise rent
Increased costs
Landlord’s costs go up over time, too. So, they may need to raise rent to cover:
- Estate agent fees
- Repairs
- Property taxes
- Insurance
- Mortgage payments.
These costs are often passed onto the tenant. However, they must fit within the Tenant Fee Act guidelines.
Increased mortgage payments
Landlords with a mortgage on property might experience increased costs to rising interest rates.
Property improvements
Landlords that have invested money into improving or renovating property may feel justified in increasing rent to recoup these costs.
Things like new kitchens, painting, bathrooms, flooring or heating can allow them to charge more.
Market rates
Check around at similar local rental properties directly or through a lettings agent. If they rent for more than your current rent, your landlord may increase it to match the market rate.
Additional occupants
If you have moved additional people into the property, the landlord may levy a rent increase to cover higher bills and wear and tear.
Tenant turnover
Landlords often increase rents between tenancies when new tenants move in. Existing tenants tend to face smaller increases.
Changes in tax rules
Recent tax changes like reductions in mortgage interest tax relief can affect a landlord’s costs, which they could offset through higher rents.
Tenants disputing landlords raising rent
Whilst the Tenants Rights’ Bill gives guidelines on how and where disputes can be settles, it’s often worth tenants and landlords considering all options.
Negotiate
Discussing reasons why landlords wish to increase rent (or tenants wish to decrease it)may help resolve many disputes through compromise.
Independent review
You can ask for an independent rent assessment from a Rent Officer or surveyor to determine if the increase is fair and reasonable.
Formal challenge
A rent increase can be formally challenged through a First-tier Tribunal (Property Chamber) if you have evidence it is excessive or outside the landlord’s legal rights. You would need to raise your case within 14 days of receiving notice. Legal advice may help.
Contact your council
If the property is within a Rent Pressure Zone, the council can take action against landlords who impose excessive rates above the cap.
Tenant unions
Join or contact the local tenant union for advice and support. They may assist you in challenging the increase.
Mediation services
Some councils or third-sector organisations offer mediation between tenants and landlords for rent disputes.
