Renters' Rights Bill 2026: How Rent Increases Will Work

The Renters' Rights Bill reshapes how landlords in England can raise rent. If you rent privately, the headline change is simple: rent can go up only once a year, only through a formal notice, and you can push back. Here is how the mechanics work in practice in 2026.

One increase a year, by formal notice only

Once the assured shorthold tenancy framework is replaced by periodic assured tenancies, rent review clauses in the tenancy agreement no longer apply. A landlord cannot rely on a contract term that says "rent rises 5% every year." Instead, any increase must use a statutory Section 13 notice (form 4).

The key limits are:

• An increase can take effect no more than once in any 12-month period.
• The landlord must give at least 2 months' notice before the new rent starts.
• The proposed rent must be in line with the open-market rate for a similar local property.
• You cannot be charged more than the figure in the notice, and the tribunal cannot raise it above that figure either.

A worked example

Say your current rent is GBP 1,200 a month. In March 2026 your landlord serves a Section 13 notice proposing GBP 1,380 from June, a 15% jump. That is well above local comparable lets, which sit around GBP 1,260.

You have two routes:

• Accept and pay GBP 1,380 from June.
• Refer the notice to the First-tier Tribunal before the new rent date.

If you challenge it and the tribunal agrees the market rent is GBP 1,260, that becomes your rent. The annual extra cost is the difference between the proposal and the tribunal figure:

GBP 1,380 - GBP 1,260 = GBP 120 a month, which is GBP 1,440 over a year you would otherwise have overpaid. Under the reforms the tribunal cannot decide the rent should be, say, GBP 1,400, so challenging carries far less downside risk than before.

What the tribunal looks at

The First-tier Tribunal (Property Chamber) decides the open-market rent: what a new tenant would reasonably pay for that property in its actual condition. It ignores any improvements you paid for yourself, and it ignores the fact that you are a sitting tenant. Evidence that helps your case includes:

• Advertised rents for similar nearby properties (size, condition, furnishing).
• Photos showing disrepair or dated fittings.
• Letting agent listings showing the local going rate.

Budgeting for a possible rise

Even with the once-a-year limit, rents can still climb with the market. A sensible approach is to model the increase against your take-home pay before you commit to staying. If your rent rose from GBP 1,200 to GBP 1,260, that is GBP 720 a year extra. Check whether that still leaves a comfortable margin once council tax, energy and the rest of your outgoings are covered.

A few practical steps for tenants in 2026:

• Diarise 12 months from your last increase so an early notice is obviously invalid.
• Check the Section 13 notice is the correct form and gives full notice.
• Gather local comparables as soon as a notice lands, not after the deadline.
• Do not stop paying your existing rent while a challenge is ongoing.

The reforms are designed to stop above-market hikes being used as backdoor evictions, but they do not freeze rents. The market still sets the ceiling, and your defence is good evidence served on time.

To stress-test what a higher rent does to your monthly budget, try our budget and take-home pay calculators, and check the current rules and forms on gov.uk before you respond to any notice.