How to Increase the rent - Two months Notice
✓PIMS Renters’ Rights Compliant
Rent increases
How landlords increase rent from 1 May 2026
From 1 May 2026, rent increases for private rented sector assured tenancies move onto one main statutory route. In practice, landlords should now assume that rent increases must be handled using the proper notice procedure rather than relying on older rent review wording.
The safer PIMS position is simple: do not rely on historic rent review clauses after 1 May 2026. Use the correct statutory notice process instead.
Important: if a rent increase is not lawful, the landlord may face repayment issues, arrears calculations can be undermined, and later possession work may be weakened if the rent figure relied on was never lawfully due.
Core rule
The basic rule on rent increases
Under the newer Renters’ Rights position, landlords should treat rent increases as a formal statutory process. The older approach of relying on fixed-term rent review wording is no longer the best working assumption for post-1 May 2026 increases.
- Rent should only be increased using the correct legal route.
- The tenant must be given proper notice.
- The increase should reflect the market rent, not an arbitrary figure.
- The tenant has a right to challenge the proposal if they think it is too high.
What landlords used to rely on
Older rent increase methods now need caution
Landlords often used to think about rent increases in four ways: a rent review clause, tenant agreement by conduct, issuing a new tenancy agreement, or serving a formal notice. From May 2026, the safest route is the formal notice process.
Methods that now need caution
- Rent review wording inside older tenancy agreements.
- Trying to rely on acceptance by conduct alone.
- Issuing a fresh tenancy when the real aim is only to increase the rent.
- Using wording that no longer matches the current prescribed system.
Safer PIMS approach
- Use the correct rent increase notice.
- Make sure the notice period is right.
- Keep the proposed date aligned to the lawful process.
- Keep the rent level justifiable against market rent.
Section 13 process
How Section 13 rent increases work
The landlord serves the prescribed notice proposing the new rent. The tenant then has the opportunity to challenge the increase if they think it is above market level. If they do challenge it, the tribunal decides what the lawful market rent should be.
- The notice must be in the correct prescribed form.
- The tenant must be given the required notice period.
- The proposed rent should be no higher than the open market rent.
- If challenged, the tribunal can determine the rent that should apply.
- Once set, the rent cannot simply be increased again straight away.
PIMS practical point: if the notice is wrong, the rent increase may fail and the landlord may later find that the arrears figure they relied on was inflated.
Tenant challenge
Tenants can and do challenge rent increases
Tenants can challenge a proposed rent increase where they believe it is above the market rent. That means landlords should not treat the process as a routine rubber stamp.
- If the tenant does not challenge in time, the proposed rent usually becomes the new rent.
- If the tenant does challenge, the tribunal decides what rent should apply.
- Simply because a tenant pays does not always make the wider legal picture risk-free.
- Good evidence of market rent remains important.
Other practical warnings
Points landlords should not overlook
- If the tenancy includes bills, the drafting needs care. Landlords should not assume a vague variable charge clause will survive challenge.
- If a deposit is protected in an insurance-backed scheme, check whether the scheme treats the rent increase or later agreement changes as requiring a fresh insurance step.
- If the tenant receives Housing Benefit or LHA, the practical affordability position should be considered before the increase is proposed.
Warning: old Wales-specific or pre-2026 form assumptions should not be carried over into post-1 May 2026 England practice without checking the current prescribed form regime.
Renters’ Rights Compliance Journey
Move through the wider PIMS journey
Before 1st May 26 rules were
A Tenants rent can ONLY be increased during the fixed term if the Tenancy Agreement contains a clause allowing such (Rent from A to B is Y thereafter X or the rent will be increased in such circumstances - but these must be defined, clear and fair - not unreasonable nor contravene unfair terms).
Where a Landlord includes bills they should consider including a clause called “variable service charge” saying if bills increase by X these will increase by Y or rent increases by Y
If your Tenancy Agreement does not permit for a VALID rent increase in the fixed term then a Tenant can only have their rent increased at the end of the fixed term if :-
- There is a clause in the tenancy agreement allowing such.
- Offer and acceptance by conduct such as they pay the new rent or complete a new housing benefits form.
- You issue a new tenancy agreement - Although your intention may have only been to increase the rent, you may find as a consequence you have to re protect the deposit and should read our section on Renewing a Tenancy.
- OTHERWISE YOU MUST issue a Rent Increase Notice. The tenant has the right to appeal and must be informed of such right - we cover this below. Such 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 1stof every month then the new increased rent should also be due on the 1st of the month. Print Form
If the rent increase is not lawful you could be ordered to repay the money.
- This is why Section 13 of the Housing Act 1988 legislation exists. It means landlords must inform a tenant of their right to appeal against such an increase [this text by law MUST be included in the notice]. Another major implication of an invalid rent increase is that at a later date it could have an adverse affect on a claim for possession. The landlord could have relied on a claim for rent arrears which had been inflated as the monies were never lawfully due. This would mean the Section 8 Notice was invalid. Print Form
How Section 13s work Print Form
When a landlord has served notice on a tenant under Section 13 of the Housing Act 1988 which proposes a new rent increase and the tenant reserves the right to apply to the Rent Assessment Committee to decide upon what it considers the market rent should be. Any increase in the rent will then take effect from the date in the landlord's notice.
A tenant who believes that an increase in the rent would cause them undue hardship can attempt to persuade the Committee to rule that this is so and arrange a later date for its decision.
A landlord and tenant will then be bound to this reduced amount for the next 12 months.
Tenants Can and often Challenge a Rent Increase
Tenants can challenge a rent increase and ask for it to be reviewed by the “Rent Assessment Committee” (part of the Residential Property Tribunal Service). If the rent is not challenged within a period, the proposed rent in the notice becomes the new rent.
If the tenant pays the rent increase it can be argued accepted by conduct and therefore increase is lawful - but again property tribunal will make the final decision
Rent increases are governed by Section 13 of the 1988 Housing ActREAD ACT
WARNING - SECTION 13 RENT INCREASE THIS IS A PRESCRIBED FORM - OR IF PROPERTY IN WALES
This means even if you do not like what is on the form it MUST be provided to the Tenant as is legislation reference
read more
Word of caution re Deposit Schemes
Note if you have a Deposit protected with a Deposit Protection Insurance scheme - note these consider a rent increase as a new Tenancy and you will have to purchase new Insurance.
If Tenant on benefits/LHA