How much can landlords increase rent in 2026? There’s no legal cap in England, but the Renters’ Rights Act has changed how rent increases work.
The only way to increase rent is now by serving a Form 4A under Section 13 of the Housing Act 1988. Tenants can challenge an increase at the First-tier Tribunal, which can decrease the rent if it’s above the open market rent for a similar property in a similar condition in the area.
This isn’t the same as “rent controls”, but the Renters’ Rights Act does make increasing rent riskier for landlords because if a tribunal decides the proposed rent is above the going rate, it can even reduce the rent to below the amount that the tenant is paying.
This blog post looks at how landlords can handle rent increases in a fair way, in compliance with the Renters’ Rights Act, at the same time as recognising that private landlords are running a business, and not providing social housing.
Last updated: 12 August 2026
>> Related Post: The new rules about rent in the Renters’ Rights Act
>> Related Post: Section 13 rent increase challenges: First-tier Tribunal process and cases
At a glance: Rent increases in England
- Average rents for new tenancies: the latest figures
- Is there a limit on rent increases in England?
- What is a fair rent increase in 2026?
- How can landlords increase rent after 1 May 2026 (Renters’ Rights Act)?
- How often can landlords increase rent after 1 May 2026? (Renters’ Rights rules)
- How much notice do landlords need to give to increase rent under Section 13?
- Can tenants appeal or challenge a Section 13 rent increase notice?
- Final Thoughts
Average rents for new tenancies: the latest figures
When working out what’s fair for a rent increase, it helps to know what’s happening with rents for new tenancies in your area. Here’s a summary of the latest data.
Average rents for new single let tenancies
According to Rightmove’s Q2 2026 Rental Trends Tracker released July 2026, average advertised rents outside Greater London rose by 1.9% in Q2 2026 to a new record of £1,397 pcm, the first quarterly record since Q3 2025. Annual growth picked up to 2.3%, from 1.6% in Q1, although it remains well below the double-digit growth of 2022 and 2023.
In Greater London, average advertised rents reached a new record of £2,791 pcm, up 2.0% on the quarter, the biggest quarterly increase in the capital since 2023. Annual growth in London is now 2.9%.
The number of homes available to rent has fallen below the previous year’s level for the first time since 2022, at 1% lower than a year ago. Even so, competition remains far below its peak: the average rental home now receives 10 enquiries, compared with 11 a year ago and 22 at the height of the market in 2022, though still above the pre-pandemic average of 5.
This is also the first Tracker to cover the market since the Renters’ Rights Act came into force on 1 May. Rightmove reports that supply, demand and pricing trends appear steady and in line with seasonal norms.
For the full regional breakdown, see Rightmove’s Rental Trends Tracker.
The official figures from ONS show rental inflation to be a little higher, with average rents increasing by 3.8% to £1,451 in England in the 12 months to July 2026. These figures include both achieved rents for new lets and in-tenancy rent increases, based on a sample.
>> Useful Resource: ONS Private rent and house prices, UK: August 2026
Average room rents for HMOs
According to SpareRoom’s Q2 2026 Rental Index, the average rent for a room in the UK including bills is now £761 pcm. That’s an increase of just 0.5% year on year, confirming that the room rental market has largely stabilised after several years of sharp increases.
In Greater London, average room rents fell slightly to £915 pcm, a year-on-year decrease of 0.2%.
The biggest increases have been in towns and smaller cities rather than major urban centres, suggesting that the high cost of living is pushing renters into traditionally more affordable areas.
For the full regional data, see SpareRoom’s Rental Index.
Is there a limit on rent increases in England?
In England, there are no legal limits on the amount a private landlord can increase rents in the private rented sector. (There’s a cap of CPI + 1% for social housing from 1 April 2026, which works out at 4.8% for 2026-27 under the government’s new 10-year rent settlement). This means that landlords have the freedom to set the rent to whatever level they think fit.
That said, if it’s above the market rent, the tenant can challenge the rent increase in the First-tier Tribunal. Click here for more on the First-tier Tribunal.
Also, there’s always the practical cap of affordability and competition. If the increase is more than the market rent for the area, tenants are likely to vote with their feet and leave. If the rent is more than they can afford, even if it’s the market rent, they’ll probably leave and find somewhere smaller, or in a cheaper location.
Part of being a good landlord is acting reasonably and hiking the rents up by a large amount in one go for existing tenants is simply not reasonable. Just because the law allows you to do something, doesn’t mean it’s the right thing to do.
What is a fair rent increase in 2026?
A fair and reasonable approach is for private landlords to increase the rent by somewhere between CPIH and wage inflation, depending on whether the rent is behind the market for a property of that condition in the area. I personally use the lower of CPIH and wage inflation, and tend to round it down to the nearest £5. However, I don’t increase rent, even by inflation, if the rents in my area are not increasing.
That said, the worst thing is to let rent fall behind the market, and then adjust it in one go with a large increase, leading to “rent shock”. This is not good for tenants, and it’s more likely to lead to a challenge at the FTT.
CPIH is the most comprehensive measure of inflation. As well as including the “shopping basket” of the Consumer Price Index (CPI), CPIH includes the costs associated with owning, maintaining and living in one’s own home, known as owner occupiers’ housing costs. It is also likely to reflect changes to the landlord’s costs.
According to the ONS, CPIH inflation in the 12 months to June 2026 was 2.8%, down from 3.0% in May 2026.
With respect to wage inflation, ONS data released in July 2026 showed that annual growth in regular pay (excluding bonuses) in March to May 2026 was 3.4%. Private sector regular pay growth was 2.9%. In real terms after CPIH, that’s growth of 0.3%.
This means that a rent increase of up to around 3% is reasonable for existing tenancies in 2026, assuming that is not more than the market rent. It will depend on what rents are doing in your area and how far you are from the market rent; if your rent is not far behind the market, an increase of CPIH inflation might be more appropriate.
Keeping rent increases below wage inflation means the increase is more likely to be affordable for renters, and less likely to end up causing them to fall into arrears.
4.8% is the cap for social housing rent increases for 1 April 2026 to 31 March 2027, under the new 10-year rent settlement (CPI + 1%).
>> Related Post: How to be a good landlord
How can landlords increase rent after 1 May 2026 (Renters’ Rights Act)?
Now that the tenancy reforms in the Renters’ Rights Act are in force, the only way that landlords can increase rent is by the Section 13 rent increase process, which involves serving a Form 4A on the tenants. Landlords need to give the tenants at least two months’ notice of a rent increase, and cannot increase the rent further until 52 weeks have passed since the last rent increase.
The Renters’ Rights Act prohibits landlords from using other methods to increase rent. Rent review clauses are now null and void, and landlords cannot validly increase rent by an addendum, unless they have first issued a Section 13 Form 4A notice and are documenting a lower rent agreed with the tenant than in the Form 4A notice.
With fixed terms gone, landlords cannot use the annual “renewal” cycle to increase rent.
Form 4A is a bit tricky. For a detailed step by step explanation of how to complete the new Form 4A, see this blog post: How to increase rent using a Section 13 notice (Form 4A)
>> Related Post: The new rules about rent in the Renters’ Rights Act
How often can landlords increase rent after 1 May 2026? (Renters’ Rights rules)
A new rent increase can come into effect 52 weeks after the last increase, assuming it is not challenged by the tenant. This is because Section 13 of the Housing Act, as amended by the Renters’ Rights Act, states the new rent cannot come into effect until at least 52 weeks have passed since the last rent increase, and also cannot be increased in the first 12 months of the tenancy.
The notice sets the new rent, unless it’s successfully appealed by the tenant at the First-tier Tribunal (see below).
If the rent is paid on a monthly basis, the landlord needs to give at least two months’ notice under Section 13, and start the new rent at the beginning of a rental period. For example, if the monthly periodic tenancy starts on the 2nd of each month to the 1st of the next, the date on the notice must be the 2nd. It’s the periodic tenancy date which is key, not the date on which the rent is paid. If the correct date isn’t used, the notice will be invalid.
The landlord needs to serve a Section 13 notice using Form 4A. Click here for the official Form 4A on the government website.
For a more detailed explanation, see the blog post: How to Increase the Rent with a Form 4A Section 13 notice.
>> Related Post: The new rules about rent in the Renters’ Rights Act
How much notice do landlords need to give to increase rent under Section 13?
Landlords need to give at least two months’ notice of a rent increase for a monthly, weekly or fortnightly tenancy under Section 13, under the Renters’ Rights Act rules, which came into effect on 1 May 2026.
The date on which the new rent is required must not be earlier than 52 weeks after the date when the rent was last increased. If a new tenancy is in place, then the date should not be any earlier than a year after the date when the tenancy started.
The rent increase must begin on the same day of the month that the tenancy started, not another day of the month. For example, if the rent for the tenancy is due on the 28th of every month then the new increased rent should also be due on the 28th of the month.
Can tenants appeal or challenge a Section 13 rent increase notice?
If the tenant doesn’t agree to the rent proposed in the Section 13 notice, they have the right to challenge it by referring the notice to the First-tier Tribunal. They must do this before the date the rent increase is due to start. If they don’t challenge the rent increase before the date in the notice, it will come into effect and be legally binding.
The tenants need to use Form MR1, which asks for detailed information on the property (rooms, facilities, type of property, furniture, repairs). Click here to download Form MR 1 from the GOV.uk website.
It costs £47 for a tenant to make an application to challenge the rent increase, and they must keep paying the old rent until the tribunal makes a decision.
In setting a rent, the tribunal will assess what rent the property would reasonably achieve if it were let on the open market under a new tenancy on the same terms. The tribunal has the power either to confirm the rent proposed in the notice, or to reduce it to what it believes is the market rent, even if it’s below what the tenant is currently paying.
The FTT lost the power to increase the rent when the Renters’ Rights Act came into force, in order to make it less risky for tenants to appeal rent increases.
The tribunal can take into account any repairs that the landlord should have taken care of. Additionally, they can take account of the value of any improvements the tenant has made themselves.
The tenant will still need to keep paying the old rent until the tribunal makes a decision.
The new rent takes effect from the date in the Form 4A notice if the tribunal makes its decision before that date (which is unlikely). If the decision comes later, the new rent starts on the rent payment date of the next rental period after the decision, and isn’t backdated to the date in the notice. The tribunal can also defer the start date by up to two months if the normal date would cause the tenant undue hardship.
So long as the landlord can provide reasonable evidence that the proposed rent increase is no more than the average for a similar property in the area, the tribunal is unlikely to decrease the rent.
>> Related Post: Section 13 notice (Form 4A)
>> Related Post: Section 13 rent increase challenges: First-tier Tribunal process and cases
Final Thoughts
As the law stands in England, landlords may increase rents so that they keep up with the market rent for that type of property in the locality.
However, the worst approach for a landlord is to put up the rent by more than inflation in one go. Even if it’s to catch up on what has become below market rent. This is likely to be difficult for the renters to manage. It’s also not a good way to treat renters.
Rent increases are never going to be popular, but they’re necessary to keep pace with inflation. However, it’s fairer to tenants to do them gradually over time, rather than in one big go.
Good landlords come up with a figure that’s fair and reasonable for them and their tenants, and follow the process correctly. Tenants are less likely to challenge a rent increase if they believe it is fair, and not above the going rate.
For practical information on how to succeed as a good landlord under the Renters’ Rights Act, you can buy my bestselling book, The Good Landlord Handbook.
If you have any questions, you can ask me direct at twice monthly livestreams in my membership, The Independent Landlord Hub.
>> Related Post: How to increase rent with a Form 4A Notice (Section 13)
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Need some advice! I’d previously taken my tenant to court for rent arrears and got a suspended possession order but suspended providing she continued to pay rent from now on. She paid a couple of months then was late so I applied to court and finally got a warrant for possession. This warrant has now been suspended due to her ‘hardship’ circumstances and another hearing has been set for 20 weeks time. She has not had a rent increase for 3 years and is on an AST thats become periodic. Following recent valuations she is paying well below the current market value. My question is: Can I issue a Section 13 with a suspended possession order and warrant in place?
Hello. So sorry to hear about this. Sounds like you’ve been through the mill.
I’m unfortunately not able to give individuals advice on this blog. I suggest you call the NRLA membership helpline. They are brilliant at this sort of thing. If you’re not a member, you can get £15 off by using my referral code: UYN-702. I hope it all works out ok.
What is a fair increase on a two year agreement
It depends on the circumstances, especially how far below market the rent is, but linking it to double wage inflation would be a good start, in my view.
my landlord increased the rent by almost 30%, is this even legal?
So sorry to hear that. If you’re in England, there are no rent controls and private landlords can choose the level of the rent increase. If you’re not happy, you can appeal the increase in the First Tier Tribunal. If the rent is above the market rate, the tribunal has the power to lower the rent. You should be able to get some help from Shelter or Citizens Advice for more advice on what to do.
Just an addition to Suzanne’s answer…if the rent is below market rate the tribunal can also advise that the rent maybe increased if the landlord so wished. Just to make you aware of possible consequences.
This sounds like the landlord is out to catch up with current market rates before being bashed by Labour .
That’s right. Labour argued that the tribunal should not be able to increase the rent if the tenants challenge it
When my land lord put my rent up eche year it never below £50 whe I took tenancy in 2012 my rent was £375 when my new land lord took over the flat he put it up by £50 and has Don it for eche year in now stands at £600 pcm look The land registry it say that the estimated front for my one bed flat is estimated at £475 ,,,,at todays price for a flat of 333 square feet it’s classt at the 38th most costly propptey in Liverpool to rent
Hi
My tenancy agreement has a clause which states clearly that the rent will be reviewed annually and increased according to inflation? Can I still serve a section 13 notice to get a higher rent ?
I can’t give legal advice, so please don’t rely on this, and call the NRLA to check (if you’re a member). However, unless your tenant agrees to the change, you’re bound by the clause. As inflation is so high, I’d have thought that would be a fairly big increase anyway. I keep mine under wage inflation.
I havent increased the rent for over four years with the same tenant, the rent is now 30% below market value and my costs have increased substantially. I have a rent clause and the contract is in a ‘contractual periodic tenancy’.
I will try to negotiate a phased increase below market value as you suggest however this which would be above the rent clause, if this approach fails it looks like my only option to get out of this situation is to issue a section 21 to either put the house back on the market to rent or to sell. The tenants are good people however I need to be able to afford being a landlord. Could you suggest what other approaches I could take to get myself unstuck in this situation. Thanks
I can’t give individual advice…
But I think my approach would be open to them, and explain to them that you need to increase the rent above the amount in the rent review clause for the property to remain viable for you. You could propose a reasonable phased increase by amending the rent review clause in the contract (which would have been drafted in a low inflation world) or by asking them to enter into a new agreement without a rent review clause. You could use the NRLA standard, and put the new rent in it. If they don’t do that, you’ll need to serve section 21. I’ve found that as long as I’m reasonable, my tenants are fine about increasing the rent. If the rent is not above the market, they won’t be able to challenge it. I hope that helps.
If I was to serve a section 21 after a rejected rent increase then the tenant go to court as I will clearly be giving them notice to leave after I tried to increase the rent above what the contract clause states. This is more a question more on the how the courts might deal with this type of situation, the current mood, or if there are any precedents for this situation? Thanks again for any insights.
The courts don’t have discretion to reject a section 21 application in these circumstances (assuming the notice is otherwise valid, with the landlord obligations complied with).
If there was an agreement with a tenant for 3 rent increases every 6 months to below market price, could the tenant then argue months down the line and apply for unfair rent increases as landlords are guided to increase the rent once a year.
Or would it be safer to have 3, 6 month contracts to avoid any problems?
Tenants can challenge rent increases if they are more than the market rent, or if you use section 13 more than once in a 2 month period. 3 fixed terms of 6 months would be less risky, but they could always refuse to enter a second one. I think you could do the increases contractually if periodic, but you should get legal advice on this.
really helpful;, useful and interesting – thanks for writing this
hello, ive been a landlord since 2009, my longest term tenant is around 10 years, while interest rates were low i didnt increase rents as i didnt need to, i realised that i was going to need to increase them when the interest rates went up, luckily im on fixed terms so no panic, i looked at my portfolio (9) to see what i needed to do, no point just hitting the unlucky tenant whos in a house that the mortgage deal is coming to an end in.
the upshot was i needed to increase rents generally from £500 to £600, so i emailed my tenants last autumn to say look the rents are gonna have to go up, itll be £40 this april, £40 next april and £40 the april after, gets me where i need to be in 2 years and eases tenants into the extra cost
That’s a very tenant-friendly and fair approach. You might want to put the original rent into the Bank of England inflation calculator to see what that rent is worth in today’s money. If your rent is less than that amount, it means you’ve reduced the rent in real terms. Here’s the link: https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator
Hello – actually in real terms in real life, rents in Oxfordshire increased by 24% per month in 2023.
Hello, just a question as a tenant.
We are on a rolling tenancy now, but the Tenancy Agreement (still valid) includes a Rent Review clause, which states precisely that the rent review shall be linked to the last 12-month RPI. It’s 2 years and half we live there, we never missed a payment and we were always very well rated from the agency, during the periodic visits: so there’s really nothing they can complain about us. Instead, since we entered there were a series of issues in the house and never fixed, all duly reported since we got in (sometimes periodically).
Now, the agency was acquired by another one and “our” reference agent changed, last month. Suddenly and with no previous approach, we’ve been served a Section 13 with very little more than 1-month notice. We don’t want to really challenge that a rent increase is due, and less than anything go to a tribunal, but they increased the rent by almost 50% over the abovementioned RPI for 2023: however, not only they didn’t try first to reach an agreement with us, but after some exchange it seems that we’re meeting a “rubber wall” with no possible negotiation, nor acknowledgement of the works the house needs. Talking with an AI wouldn’t have made much difference, it seems they don’t even consider our proposals nor objections.
We’d like then to refuse the rent increase and look (we’ve started as soon as we knew) for another place, lucky in our area the market has other options for the same “old price”. The question is then: can we reject the rent review, NOT go to a tribunal, NOT to pay the rent increase if we stay i.e. one month more, and then move out?
I ask because we might not have the 1-month notice period to end the agreement, when we reject the Section 13; and even if they issue a Section 21, I’m afraid they will want us to pay the rent increase they want to force upon us (at least, this is the only thing we may understand from their behaviour).
Thank you.
I can imagine how stressful this must be.
Unfortunately I can’t give individual advice. However, if the rent increase isn’t in line with rent review clause in the tenancy agreement, challenge it in writing by sending a hard copy letter to the letting agent, citing the clause, and saying they are in breach of contract and that the s13 notice is invalid.
Beyond that general advice, I suggest you contact Citizens Advice.
Thanks for the article. I have been using CPIH as the index used to agree the annual rent increase following expiry of a 12 month fixed term in the event we don’t enter into a new 12 month fixed term.
To avoid any issue with the ONS data not being available in the month needed I say the CPIH to be used for the purpose of the rent increase is the one published two months prior to renewal, eg September renewal means the agreed increase is in relation to the July CPIH number. This provides certainty as both tenant and landlord know well in advance what the agreed increase will be. It can also help inform discussions on 12 month AST renewal. Also there is nothing preventing landlord and tenant agreeing a higher rent increase than the one agreed where that is appropriate. And in extremis if a rent can’t be agreed then s 21 can be used (although I have never used it personally).
In addition and to be fair (and avoid the clause being contested if challenged in court) I say if CPIH is less than 2% then the rent increase is 2%; if it’s between 2 to 5% then the rent increase is CPIH and if CPIH exceeds 5% then the increase is capped at 5%.
I am sure there are lots of others ways to do it but I think this is fair and reasonable.
I agree about using the figure from 2 months before the change. That way if the tenant isn’t happy with the modest increase, there is still time to use a Section 13 notice. Last year I used wage inflation as the CPIH was very high, so I have informally been using the lower of CPIH and wage inflation.
I don’t think s13 would apply as the AST I have continues as a contractual periodic tenancy (rather than statutory). Case law from Upper Tribunal confirms the FTT does not have jurisdiction to consider a 13 notices where the rent increase mechanism is contractually agreed. NRLA notes other implications for contractual vs statutory which may be advantageous to Landlords.
I appreciate use of contractually agreed rent increases was due to change if the Renters Reform Bill was enacted (with the result a s13 notice would have to be used). And we may have something akin to this if/when new legislation is enacted.
See https://www.localgovernmentlawyer.co.uk/housing-law/315-housing-features/57144-section-13-rent-increases-and-contractual-provisions-in-the-upper-tribunal
https://www.nrla.org.uk/resources/creating-your-tenancy/guide-to-contractual-and-periodic-tenancies
Sure. I make it clear in the post that s13 cannot be used if there is a contractual rent review clause
Hi Suzanne, in which circumstances can the FTT conduct their property inspection before deciding to appeal a rent increase? Also, can the tenant request FTT to carry out an inspection? I’m a private tenant and my landlord (they’re a company and not an individual) has served me form 4 proposing the rent increase by 62% in one go – the first increase in tenancy that began more than 7 years ago. The landlord has done some disrepair work recently only after I complained to the local council – I believe the disrepair work hasn’t finished yet. Thanks
62% is a huge amount in one go. I’m sorry to hear that. How does the rent sit with the current market rent for a similar property in a similar condition in the area? I think you can ask the FTT to carry out an inspection. Shelter might be able to help you with this: https://england.shelter.org.uk/get_help
Thanks, Suzanne. Taking a short supply of the to-let properties out of the equation, a 16% bump would be reasonable.
Reasonable for the landlord, but a lot for existing tenants to find out of their budget. It’s also significantly above inflation
Hi Suzanne,
I hope you’re doing well. I have a question regarding overpayment and the Tenant Fees Act 2019. Can a tenant demand interest on the overpayment of a sum of money the landlord charged in violation of the Act?
My landlord asked me to pay admin fees and a 6-week deposit, which exceeds the maximum 5 weeks allowed by law. I made that overpayment eight years ago and am now planning to ask for a refund.
Hello. Here’s a link to the relevant page on Shelter’s website: https://england.shelter.org.uk/housing_advice/private_renting/letting_agent_fees_for_tenants
Again well done Suzanne. I totally agree with all you say. The financial squeeze is being felt by all and from a tenant’s point of view one of the only negotiable elements to this is the rent. They keep a close eye on last years increase. It is only getting tougher.
I’m an ‘amateur’ landlord and have a question about rent changes under the RRA(2026).
The last rent increase on my rental flat was 1st September 2025. Under the Act, I can increase it on or after 1st Sept 2026.
But if I reduce the rent temporarily from Oct 1st 2026 for compassionate reasons (since one tenant is moving out and the other one wants to stay) can I then, within 12 months, increase it again to the original rent giving 2 months notice? Or can I use a Rent Concession Agreement to reduce the rent and later increase it and still be compliant with the Act?
Thank you.
Simplest fix is not to vary the rent at all. Give a written concession instead: you’ll accept a lower figure from 1 October for as long as you mean it to run, with the rent under the tenancy unchanged. Nothing to put back up, so no section 13 and no tribunal.
If you do formally reduce it, the way back is the tenant’s written agreement or a section 13, since those are now the only routes (new s.13(4A)). Your 52 weeks runs from 1 September 2025, so that isn’t the obstacle. A section 13 posted on 1 October wouldn’t bite until 1 January.
Worth checking whether one tenant leaving and one staying is actually a new tenancy rather than a variation. If it is, you set the rent and none of this applies.