The Renters Rights Act is introducing a sweeping set of reforms designed to standardize how rent is managed. The new rules are stricter, clearer, and undeniably more tenant-friendly. Whether you are a landlord managing a portfolio or a tenant budgeting for the future, understanding these changes is no longer optional—it is essential to staying on the right side of the law.
In this guide, we break down the major highlights of the Act, focusing specifically on the new rent increase rules that will reshape the market from 2026 onwards.
The Headline Changes: At a Glance
Before diving into the details, here are the critical takeaways from the new legislation affecting Assured Shorthold Tenancies (ASTs) in England:
- One Method Only: Landlords can only increase rent using the formal Section 13 statutory process.
- Annual Limit: Rent can only be increased once per year.
- Longer Notice: The minimum notice period for a rent increase is doubling from one month to two months.
- Clauses Voided: From 1 May 2026, automatic or contract-based rent review clauses will be legally void.
- Tribunal Power: Tenants have a strengthened right to challenge increases at the First-tier Tribunal.
- No Backdating: Rent increases cannot be applied retroactively; they start only from the date of the Tribunal’s decision.
1. The Death of the “Rent Review Clause”
One of the most significant shifts in the Renters Rights Act is the move away from “contract tricks.”
Historically, many tenancy agreements contained rent review clauses buried deep within the fine print. These clauses often pegged rent rises to inflation (RPI/CPI), set automatic annual percentage increases, or simply gave landlords the discretion to raise rents mid-tenancy. This created uncertainty for tenants who could never be quite sure when, or by how much, their housing costs would rise.
The May 2026 Cut-Off
The Act draws a hard line in the sand. From 1 May 2026, all such clauses will become legally meaningless.
This applies even if the clause is written into an existing tenancy agreement signed before the Act came into power. Landlords cannot rely on pre-agreed terms to bypass the new statutory rules. The government’s intention is clear: they want rent rises to be predictable, transparent, and consistent across the entire sector. Turning off these clauses is the first step toward that goal.
2. The Section 13 Process: The Only Way Forward
With contract clauses removed, landlords are left with only one legal mechanism to raise the rent: the Section 13 notice.
Currently, Section 13 is one of several ways to increase rent, but under the new Act, it becomes the exclusive method for periodic tenancies. This formalizes the process, requiring landlords to serve a specific statutory form proposing the new rent.
Why This Matters
- Transparency: The Section 13 form clearly outlines the tenant’s rights, including their right to challenge the increase.
- Standardization: Every tenant in England will receive the same documentation, removing the confusion of informal emails or verbal agreements.
3. The New Timeline: Doubling the Notice Period
Perhaps the most practical change for day-to-day management is the extension of the notice period.
Currently, landlords are generally required to give one month’s notice before a rent increase takes effect. The Renters Rights Act doubles this to a minimum of two months.
Implications for Landlords
Landlords will need to be far more organized. To increase rent effectively, you must plan 60+ days in advance. If you miss your window, you cannot simply “catch up” the following month without serving a fresh two-month notice.
Implications for Tenants
This extension provides a crucial buffer. It gives tenants eight weeks to:
- Assess their budget.
- Check comparable local rents to see if the increase is fair.
- Seek advice or prepare a challenge if necessary.
- Find a new property if the new rent is unaffordable.
4. challenging Rent Increases: The First-tier Tribunal
The Act empowers tenants to challenge what they perceive as unfair hikes. If a tenant receives a Section 13 notice and believes the proposed rent exceeds the open-market rate, they can refer the case to the First-tier Tribunal.
The “Market Rate” Benchmark
The Tribunal’s role is not to decide if the rent is “affordable” for the specific tenant, but rather if it is “fair” compared to similar properties in the area.
- If the Tribunal finds the proposed rent is above market value, they will lower it.
- Crucially, the Act ensures that the Tribunal cannot increase the rent beyond what the landlord originally proposed. This removes the risk for tenants who previously feared that challenging a rent rise might result in the Tribunal setting an even higher figure.
Hardship Provisions
In specific cases of “undue hardship,” the Tribunal has the power to defer the start date of the rent increase. They can delay the hike for up to two months from the date of the hearing, giving the tenant extra time to adjust their finances.
5. No More Backdating
Under the old system, disputes could sometimes result in tenants owing large lump sums of backdated rent once a decision was made. The Renters Rights Act abolishes this.
The new rent will only apply from the date of the Tribunal determination (or the date specified in the notice if no challenge is made). It cannot be backdated to when the dispute began. This protects tenants from accumulating unmanageable debt while exercising their legal right to challenge a notice.
A New Era for the Private Rented Sector
The Renters Rights Act represents a paradigm shift. By scrapping automatic review clauses and mandating a strict statutory process, the government is forcing the market towards greater professionalization.
For landlords, the days of casual or automatic rent bumps are over. Compliance will require rigid adherence to the Section 13 process and forward planning to accommodate the two-month notice period.
For tenants, the Act offers security. The removal of surprise clauses and the extension of notice periods provide a level of stability that has been missing from the private rented sector for years.
As we approach May 2026, both parties must prepare. The rules of engagement have changed, and in this new landscape, knowledge of the law is the most valuable asset you can hold.
Frequently Asked Questions (FAQs)
- Can my landlord still increase my rent using a clause in our contract?
No, not after 1 May 2026. From this date, any clause in your tenancy agreement that allows for automatic rent increases or gives the landlord discretion to raise the rent is void. The landlord must use the Section 13 statutory process.
- How much notice does a landlord have to give for a rent increase now?Under the Renters Rights Act, landlords must provide a minimum of two months’ notice. This is an increase from the previous standard of one month.
- What happens if I think the new rent is too high?You have the right to challenge the increase at the First-tier Tribunal. If the Tribunal decides the proposed rent is higher than the open-market rate for similar properties in your area, they can reduce it. They cannot set the rent higher than what the landlord proposed.
- Can a landlord increase the rent more than once a year?No. The Act restricts rent increases to once every 12 months. This prevents landlords from issuing multiple smaller increases throughout the year.
- What is the “Section 13” notice mentioned in the article?Section 13 is a formal legal notice (Form 4) that landlords must use to propose a rent increase for periodic tenancies. Under the new Act, this will be the mandatory method for increasing rent, ensuring all tenants receive clear, standardized information.
- Will I have to pay backdated rent if I challenge an increase?No. The new rules state that rent increases cannot be backdated. If the Tribunal determines a new rent, it only applies from the date of their decision (or a later date if they grant a deferral for hardship). You will not be asked to pay the difference for the months you were waiting for the hearing.