How Can a Landlord Increase the Rent in 2026?

Rent increases have always been an important part of managing a rental property, but the process changed significantly in England from 1 May 2026 following the implementation of the Renters’ Rights Act 2025.

For landlords in Bishop’s Stortford, Stansted, Sawbridgeworth, Takeley, Great Dunmow and the surrounding villages, it is now particularly important to understand both when rent can be increased and how the increase needs to be carried out.

The days of simply relying on a rent review clause in a tenancy agreement have effectively gone for assured tenancies.

Here is what landlords need to know.

How Often Can a Landlord Increase the Rent?

For an assured periodic tenancy, rent can normally only be increased once in any 12 month period.

A landlord also cannot increase the rent during the first year of a new tenancy.

For example, if a tenant's rent was increased on 1 October 2026, another increase could not take effect until at least 1 October 2027.

This makes it increasingly important for landlords to regularly review their rental value rather than leaving the rent unchanged for several years and then attempting a significant increase.

How Much Notice Does a Landlord Need to Give?

Landlords must give tenants at least two months' notice of a proposed rent increase.

The increase must be made using the statutory rent increase procedure, commonly referred to as the Section 13 process.

The landlord needs to serve the appropriate prescribed form setting out the proposed new rent and the date on which it is intended to take effect.

Can a Landlord Just Agree a Rent Increase With the Tenant?

This is one of the important changes landlords need to be aware of.

Even where the landlord and tenant are happy with the proposed increase, the statutory Section 13 procedure still needs to be followed.

Government guidance states that landlords need to use the process each time they increase the rent, even where an increase has already been agreed with the tenant.

This is why landlords should avoid treating an informal WhatsApp message, email or conversation as sufficient to change the rent.

The correct notice should still be served.

What Should the New Rent Be?

A rent increase should reflect the open market rental value of the property.

In simple terms, this means asking:

What would the property reasonably achieve if it was advertised to let today?

This is where a professional rental valuation can be useful.

A letting agent should look at comparable properties, recent lets, current competition and the condition and specification of the property rather than simply applying an arbitrary percentage increase.

For example, if a property is currently rented for £1,600 per month but comparable properties are consistently letting for around £1,700, there may be a reasonable basis for reviewing the rent.

That is very different from increasing the rent substantially above what similar properties are actually achieving.

Can a Tenant Challenge a Rent Increase?

Yes.

If the tenant believes the proposed rent is higher than the open market rent, they can refer the increase to the First-tier Tribunal.

The Tribunal can then consider what the property would reasonably achieve on the open market.

This is another reason why landlords should be able to justify the figure they are proposing.

Evidence of comparable rental properties and recent local lettings can be extremely useful.

What Happened to Rent Review Clauses?

Under the Renters’ Rights reforms, assured tenancies now operate as periodic tenancies and rent increases are intended to go through the statutory procedure.

Terms allowing rent to be increased outside that process do not override the statutory system.

So even if an older tenancy agreement contained a clause saying that rent would automatically increase every year, landlords should make sure they are following the current statutory procedure before applying an increase.

What If the Tenant Has Been Paying the Same Rent for Years?

This is quite common.

A landlord may have a good tenant and deliberately avoid increasing the rent for several years.

The problem is that the rent can gradually fall a long way behind the market.

For example, a tenant may be paying £1,400 per month while comparable properties are now achieving £1,650.

It may be tempting to immediately increase the rent by £250.

However, landlords should think carefully about the wider position.

A reliable tenant who looks after the property and pays on time has considerable value.

There is also a cost to replacing a tenant through potential void periods, marketing, inventories, cleaning and preparation.

Sometimes getting the absolute maximum rent isn't necessarily the best financial decision.

The aim should usually be to keep the rent sensible and commercially realistic while maintaining a good tenancy.

Should Landlords Increase the Rent Every Year?

Not necessarily.

There is no requirement to increase rent simply because 12 months have passed.

However, we generally think landlords should at least review the rental value annually.

That doesn't mean automatically increasing it.

It simply means understanding where the property currently sits against the market.

If the rent remains appropriate, there may be no reason to change it.

If it has started falling significantly behind, a modest increase may be preferable to allowing a large gap to build up over several years.

What If the Tenant Cannot Afford the Increase?

This is where landlords need to take a commercial view.

If a strong tenant is paying slightly below market rent, keeping them may still represent better value than pushing the rent to the maximum possible figure and risking them leaving.

A change of tenant can involve:

marketing costs,
a possible void period,
cleaning or decorating,
inventory costs,
maintenance before reletting,
and the uncertainty of a new tenant.

The right rent isn't always the highest rent.

It is the rent that gives the landlord a sensible return while keeping the tenancy sustainable.

Rent Increases and Section 21

Another major change from 1 May 2026 is the abolition of Section 21 for private assured tenancies.

Landlords can no longer simply use a Section 21 notice to regain possession without relying on a statutory ground.

This makes it even more important that landlords follow the correct procedures when managing the tenancy, including rent increases.

The Renters’ Rights Act also strengthens tenants' ability to challenge increases that are above the property's market value.

What About New Tenancies?

Since 1 May 2026, the vast majority of new private assured tenancies are assured periodic tenancies rather than traditional six or twelve month assured shorthold tenancies.

That means there is no need to wait for an arbitrary fixed term to expire before reviewing the rent.

Instead, the statutory rules determine when a rent increase can take place.

Landlords should therefore think of rent reviews as part of the ongoing management of the tenancy rather than something connected to a tenancy renewal.

What About Rent Bidding?

There has also been another important change affecting rental pricing.

Landlords and letting agents must advertise an asking rent and cannot invite, encourage or accept offers above that figure.

This means getting the asking rent right from the beginning has become even more important.

A property should be priced at a level that properly reflects the market rather than deliberately being advertised low with the expectation that prospective tenants will bid against one another.

How Can Willmott & Lake Help?

As part of our Fully Managed service, we keep an eye on the rental market and can advise landlords when it may be appropriate to review the rent.

We can look at comparable properties, recent lettings and current tenant demand to recommend a realistic market figure.

Where an increase is appropriate, we can also manage the process and make sure the relevant statutory procedure is followed.

Our Fully Managed service is 9% plus VAT and includes rent collection, property inspections, tenant communication, maintenance coordination and ongoing management.

We charge £0 setup fees, £0 deposit registration fees and we don't add mark-ups to contractor invoices.

We manage rental properties across Bishop's Stortford, Stansted, Sawbridgeworth, Takeley, Great Dunmow and the surrounding villages.

If you're a landlord and would like to know whether your current rent still reflects the market, contact Willmott & Lake on 01279 801165 for a no obligation rental review.