Another one of these changes that landlords need to be mindful of concerns rent increases. New rules under the Renters Rights Act will govern how rent is set, increased and challenged in the private rental market. The changes amend the Housing Act 1988 (HA 1988) with a view to promoting fairness in rental practices and creating a more consistent framework for both landlords and tenants. 

What happens to fixed-term tenancies and rent review clauses after May 2026?

The RRA 2025 will abolish assured shorthold tenancies (ASTs) and evictions by section 21 notices. All private sector ASTs will be assured periodic tenancies with no fixed terms. 

This means that all rent review clauses contained within tenancy agreements will no longer be enforceable. From 01 May 2026, private landlords can only raise rent and issue rent increases through the statutory procedures set out in sections 13 and 14 of the HA 1988.

How can landlords make rent increases under the new rules?

Landlords wishing to make rent increases will need to abide by these changes at all times. Now, the only lawful route for raising rent for most private sector assured tenancies will be a landlord’s notice under Section 13 HA 1988. 

This will mean: 

• Rent increases can only occur once every 12 months 
• A landlord must give at least 2 months’ notice of the increase
• No increase can occur within the first year of the tenancy 
• Increases must reflect the open-market rent 

What happens if a tenant challenges a rent increase?

It is important to note that tenants can challenge the validity of the landlord’s notice of a rent increase. They can do this directly before the First-Tier Tribunal (Property Chamber) (“FTT”). 

Where the amount of rent is disputed, Section 14 HA 1988 sets out the powers of the FTT. The legislation is a safeguard against excessive rent increases and ensures that disputed rents are assessed according to objective market evidence and determined by an independent tribunal. 

Tenants will be able to challenge the initial rent during the first six months of the tenancy, even if the landlord has not suggested a rent increase. A tenant may apply once to the FTT to ask them to determine the open-market rent. 

The tribunal will decide what rent the property could reasonably be let for on the open market. The tenant will then pay whichever is lower: 

• The rent set by the tribunal; or 
• The rent already being paid. 

Any change to the rent cannot be backdated and can only apply from the date the application was made. 

Key takeaways for landlords

The amendments to the Housing Act 1988 introduced by the Renters Rights Act 2025 mean that tenants have clearer rights to challenge rents that they consider are too high, and landlords can only issue rent increases by using the formal legal process, with a section 13 notice. The FTT will play a key role in ensuring rents are fair and reflect the open market. 

At Kitson Boyce, our specialist property dispute resolution team is well-versed in the upcoming changes. If you require any assistance regarding rent increases or legal advice regarding the Renters’ Rights Act in general, please contact Fiona Hannaford on 01803 206209 or email [email protected].