The Renters’ Rights Act 2025 will significantly change the way landlords increase rent. From 1 May 2026, when the reforms are expected to take effect, contractual rent review clauses will no longer be permitted.
This means rent adjustments will no longer be able to follow the wording written into a tenancy agreement. Instead, landlords will need to rely on the statutory framework set out in Section 13 of the Housing Act when reviewing rent during a tenancy.
The shift will place greater emphasis on evidence, timing and judgement. In practical terms, rent increases will need to reflect genuine market value rather than expectation.
For landlords, the implications are straightforward. An increase set too high may risk delay or dispute. An increase set too low could suppress income unnecessarily. Understanding the difference between market rent and what might be described as “wishful rent” will therefore become increasingly important.
Related: New Possession Rules from May 2026: What Landlords Need to Know – An Ellis & Co Guide
What will change under the Renters’ Rights Act 2025
Under the current system, tenancy agreements can include clauses explaining how and when rent may rise. These mechanisms offer predictability but vary in structure and transparency.
The Renters’ Rights Act 2025 will remove those clauses and replace them with a single regulated route. Rent increases during a tenancy must follow the Section 13 procedure. This will create a consistent framework across the private rented sector and introduce clearer safeguards for tenants.
For landlords, rent reviews will no longer be a contractual routine. They will become a formal legal step that must be handled carefully and correctly.
Why evidence will matter more than intention
Under the reformed framework, rent increases during a tenancy will need to be implemented using the Section 13 mechanism. Landlords will be able to propose a new rent, provided that:
- The correct notice is served
- The appropriate minimum notice period is given
- The increase is typically limited to once every 12 months
- The proposed figure reflects local market conditions
Tenants will have the right to challenge an increase if they believe it exceeds market value. Any assessment will focus on comparable evidence rather than projected income targets.
This is where the distinction between market rent and “wishful rent” becomes important. A compliant increase will be supported by data from similar properties and current letting activity. A figure set without that foundation is far more likely to be questioned.
The oversight landlords will need to consider
The Renters’ Rights Act 2025 will also strengthen the role of local councils in monitoring compliance. If landlords attempt to rely on contractual rent review clauses once they are prohibited, or fail to follow the statutory procedure correctly, local councils will have the authority to investigate and take action.
Local councils are expected to take a more active role in enforcement under the new regime, particularly where repeated non-compliance is identified. Maintaining accurate records and following the correct process will therefore be essential.
Against that backdrop, rent reviews will no longer be treated as automatic adjustments. They will require deliberate assessment and careful positioning.
Reframing rent reviews as strategic decisions
With contractual rent review clauses due to be removed, landlords will need to take a more considered approach to increases.
Rather than applying annual uplifts as standard practice, landlords should assess:
- Whether the current rent sits at prevailing local levels below
- How comparable homes are positioned in the market
- Whether the timing of the proposed increase is appropriate
- How the new figure would stand up to independent scrutiny
A measured approach grounded in evidence will be far less likely to result in challenge and far more likely to support long-term stability.
Why professional oversight will matter in a regulated market
Serving a Section 13 notice incorrectly may result in delays and unnecessary complications once the reforms take effect. The revised legal framework will leave less room for error.
Working with experienced property professionals will help ensure that rent increases are:
- Structured in line with the Renters’ Rights Act 2025
- Supported by reliable local market analysis
- Communicated clearly to tenants
- Managed with awareness of how local councils will operate
This reduces uncertainty and helps maintain both compliance and continuity.
Aligning rental income with legal compliance
The forthcoming framework under the Renters’ Rights Act 2025 is intended to bring clarity and consistency to rent increases. Landlords will still be able to review rent where appropriate, but the process will need to be properly justified and correctly served.
When supported by accurate market evidence and careful handling, the Section 13 route will provide a fair and sustainable way to adjust rent. When increases are driven by assumption rather than data, the likelihood of dispute will rise.
If you are planning for the changes taking effect on 1 May 2026, Ellis & Co can help you assess your property’s market position and prepare for a compliant, well-supported rent review under the Renters’ Rights Act 2025.
