What Are the New Rent Increase Rules for Landlords in 2026?

Rent increases have changed significantly for private landlords in England. Since 1 May 2026, new rules introduced under the Renters' Rights Act 2025 have fundamentally altered how and when landlords can increase rent. One of the biggest misconceptions circulating among property owners is that the government has introduced a fixed rent cap, such as 5%, 10%, or another set percentage. This is simply not the case. For most private rented properties in England, there is still no fixed maximum percentage by which a landlord can increase the rent. However, landlords now face much stricter rules regarding frequency, notice periods, procedures, and market value assessments.

For landlords operating in Stoke-on-Trent, Newcastle-under-Lyme, Crewe, and surrounding areas, understanding these rules is absolutely essential before carrying out a rent review. The landscape of property management has shifted, and relying on outdated practices could result in legal challenges, financial losses, and tribunal interventions.

What Changed on 1 May 2026?

From 1 May 2026, most assured private tenancies in England transitioned onto the new

assured periodic tenancy system. This marks a significant departure from the previous

regime, bringing with it a structured, compliance-driven approach to rent reviews. Under

the new rent rules, a landlord can generally:

• Increase the rent only once per year.

• Not increase the rent during the first 12 months of a new tenancy.

• Only increase rent using the statutory Section 13 procedure.

• Serve the tenant with the new prescribed Form 4A.

• Provide at least two months' notice before the increase takes effect.

• Propose a rent that strictly reflects the property's open-market rental value.

Tenants now have the explicit right to challenge an increase if they believe the proposed

rent is higher than the open-market rent. This means landlords need a much more structured, evidence-based rent-review process than simply informing a tenant that their monthly payment will increase. Informal agreements and verbal conversations are no longer sufficient; the correct statutory procedure is paramount.

Is There a Maximum Rent Increase in 2026?

No fixed percentage cap applies to most private rents in England. There is no general law

stating that rent can only rise by 3%, 5%, 10%, or any other universal percentage. Instead,

the key limit is the property's open-market rent.

For example, imagine a tenant currently pays £700 per month. If comparable properties

genuinely rent for around £800 per month, a landlord may potentially propose an increase towards that market level. That would represent an increase of approximately 14.3%. The percentage itself would not automatically make the increase unlawful. However, if similar properties were only achieving £725 to £750 per month, proposing £800 could be much harder to justify if the tenant challenged the increase.

The correct question for landlords in 2026 is therefore no longer, “What percentage can I

increase the rent by?” It is, “What would this property realistically achieve if it were let on

the open market today?” This shift requires landlords to adopt a more professional,

analytical approach to their portfolios, moving away from arbitrary percentage hikes to

evidence-backed market valuations.

How Often Can a Landlord Increase Rent in 2026?

For an assured periodic tenancy covered by the new rules, rent can normally be increased only once every 12 months. Furthermore, a landlord cannot increase the rent during the first year of a new tenancy. This makes annual rent reviews much more critical to long-term portfolio performance.

Consider a landlord who leaves the rent unchanged for four or five years. During that

period, local rents may increase, insurance may become more expensive, maintenance

costs may rise, mortgage costs may change, and compliance costs may increase. The

landlord may eventually discover that the property is significantly below market value.

While the rent could potentially be moved towards market value, a large, sudden increase may create resistance from the tenant and a greater likelihood of a tribunal challenge. Regular, evidence-based annual rent reviews can therefore be far more manageable than allowing a large gap to develop.

How Much Notice Must a Landlord Give?

Another major 2026 change is the notice period. A landlord must give the tenant at least

two months' notice before the proposed new rent takes effect. The landlord must do this

using the prescribed Form 4A – Landlord's notice proposing a new rent for assured

tenancies in the private rented sector.

For example, if a landlord wants the new rent to begin on 1 November 2026, they would

need to ensure that the tenant receives the correct Form 4A at least two months

beforehand. Landlords should also retain robust evidence showing when and how the

notice was served. A rent increase should never be treated as a casual email or verbal

conversation. The correct statutory procedure matters, and failure to follow it can render

the increase invalid.

What Is Form 4A?

Form 4A is the prescribed notice landlords must now use to propose a rent increase for

most assured private tenancies in England. It forms part of what is commonly referred to as the Section 13 process. The form clearly sets out the existing rent, the proposed new rent, and the date on which the increase is intended to begin.

Based on existing guidance, landlords must follow this process every time they increase the rent, even where the landlord and tenant have already discussed or agreed the increase. This is a vital operational change. Informal agreement alone should not replace the correct statutory process. Professional property management requires adherence to these formal procedures to mitigate risk and ensure compliance.

Can Landlords Still Use a Rent Review Clause?

The new system has significantly reduced the role of traditional contractual rent-review

clauses for assured private tenancies. After 1 May 2026, landlords are required to use the

Section 13 procedure for rent increases rather than relying on a tenancy clause to impose the increase.

Government guidance also confirms that where an increase under an old rent-review clause was agreed before 1 May 2026 but was intended to take effect after that date, that increase does not automatically apply. This is particularly critical for landlords using older tenancy agreement templates. A clause that worked under the previous system should not simply be assumed to remain effective under the new regime.

Can a Tenant Challenge a Rent Increase?

Yes. One of the central protections within the 2026 system is the tenant's ability to

challenge a proposed increase. If the tenant believes the landlord is asking for more than

the property's open-market rent, they can apply to the First-tier Tribunal for a

determination.

The tribunal considers what the property could reasonably command if it were being let on the open market. This involves looking at factors such as location, number of bedrooms, property type, condition, furnishings, facilities, included bills, local comparable rents, and other relevant property characteristics. The tribunal is therefore not primarily deciding whether the percentage increase looks large; it is assessing genuine market value.

Can the Tribunal Increase the Rent Above the Landlord's Proposed Amount?

No. Under the 2026 rules, where a tenant challenges a Section 13 increase, the new rent

determined by the tribunal is effectively limited to the lower of the property's determined open-market rent or the rent originally proposed by the landlord.

So if a landlord proposes £900 per month and the tribunal believes market rent is £950, the tribunal will not simply increase the tenant's rent to £950. Conversely, if the tribunal

determines that the open-market rent is only £850, the proposed £900 increase could be reduced accordingly. This gives tenants greater protection against above-market increases while also reinforcing exactly why landlords must obtain reliable rental evidence before issuing a notice.

What Is Open-Market Rent?

Open-market rent is essentially the amount a landlord could reasonably expect to receive if the property were offered for rent on the market under comparable circumstances. This means landlords should look beyond national averages and focus on hyper-local data.

For an Essential Management Ltd landlord, a comparison might involve properties within

Stoke-on-Trent, Newcastle-under-Lyme, Crewe, or the relevant surrounding neighbourhood. The comparison should also be genuinely similar. For example, it would

make little sense to compare a furnished HMO room with bills included against an

unfurnished one-bedroom self-contained flat. Even if both properties are in the same

postcode, they are fundamentally different rental products.

A Practical 2026 Rent Increase Example

Consider a landlord with a property currently renting at £750 per month. Comparable local properties are achieving between £825 and £850 per month. The landlord decides that £825 represents an appropriate new rent. The increase would be £75 per month, or 10%.

There is nothing automatically unlawful about the 10% figure. The important issues are

whether the tenancy is eligible for an increase, at least 12 months have passed where

required, the correct Form 4A is used, at least two months' notice is provided, and £825 is supportable as an open-market rent.

Now imagine the landlord attempted to raise the same property's rent from £750 to £1,000. That is a 33.3% increase. Again, the percentage alone is not the legal test. But if comparable properties are only achieving £825 to £850, the landlord may struggle to support £1,000 as a genuine market rent if the tenant applies to the tribunal.

What If the Last Rent Increase Happened Before 1 May 2026?

The transition rules are important. If a landlord validly served the previous version of the

statutory rent-increase notice before 1 May 2026, the increase can still take effect according to that notice even where the start date falls after 1 May. However, the landlord cannot simply issue another increase immediately under the new rules.

At least a year must normally pass from the date the previous increase took effect before

another rent increase can take effect. For example, if a rent increase took effect on 1

February 2026, the landlord cannot have another rent increase take effect before 1

February 2027. This is vital for landlords reviewing portfolios during the transition from the old tenancy system to the Renters’ Rights Act regime.

Why Local Rental Evidence Matters More in 2026

The new rules make market evidence increasingly valuable. Before issuing a rent increase, landlords should consider gathering evidence from several comparable properties. Useful comparisons may include properties in the same postcode or immediate area, similar bedroom numbers, similar property condition, furnished versus unfurnished properties, HMOs with comparable room sizes, whether bills are included, parking availability, garden or outdoor space, transport access, and relevant amenities.

A landlord should ideally be able to explain why the proposed rent reflects the local market. Simply saying, “My mortgage has gone up,” is not the same thing as demonstrating that the property's market rental value has increased.

Should Landlords Always Raise Rent to Full Market Value?

Not necessarily. Market rent tells landlords what a property could potentially achieve. It

does not automatically tell them what the best commercial decision is.

Suppose a tenant pays £800 per month while similar properties achieve £850 per month. Moving straight to £850 would generate an additional £600 per year. But landlords should also consider the wider investment position. If a reliable tenant decides to leave, a landlord could incur void periods, advertising costs, cleaning, repairs, administration, referencing costs, and time spent onboarding a replacement tenant.

Sometimes moving to full market rent makes commercial sense. Sometimes retaining a

reliable tenant at slightly below market rent produces a stronger overall return.

Professional property management therefore looks at more than the headline rent; it

considers the holistic performance of the asset.

Can a Landlord Increase Rent to Force a Tenant Out?

Landlords should not treat rent increases as an alternative eviction mechanism. Under

current legislation, Section 21 “no-fault” eviction has also been abolished in England.

Landlords who need possession must now rely on an appropriate legal ground rather than attempting to make a tenancy unaffordable through an excessive rent increase.

Because tenants can challenge above-market increases, trying to use an unrealistic rent

increase as a substitute for the possession process can create unnecessary disputes and

legal risk. Rent reviews and possession should be treated as entirely separate management processes.

What Should Landlords Do Before Increasing Rent in 2026?

A professional 2026 rent-review process should begin with the tenancy records. First

establish: When did the tenancy begin? When did the last rent increase take effect? Is the tenancy eligible for another increase?

Then research the market. Look at several genuinely comparable properties and establish a

realistic rental range. After that, consider the commercial position of the tenancy. Has the tenant paid reliably? Is the property being maintained appropriately? Would a large

increase create unnecessary turnover risk?

Once the proposed rent has been determined, the landlord should complete and correctly serve Form 4A, giving at least two months' notice and keeping evidence that the notice was delivered. This creates a clear, documented, and defensible rent-review process.

Is This the Same Across the Whole UK?

No. The reforms discussed in this article apply primarily to England. Housing law is

devolved, meaning Wales, Scotland, and Northern Ireland have their own rental legislation and rent-increase procedures. Landlords with properties across more than one part of the UK should therefore check the rules applying specifically to each property rather than assuming that the English Renters’ Rights Act system applies nationwide.

The Bottom Line

So, what is the new rent increase rule for 2026? For most private landlords in England, from 1 May 2026, there is no fixed percentage rent cap. However, landlords can generally

increase rent only once per year, cannot increase it during the first year of a new tenancy,

must provide at least two months' notice, and must use Form 4A under the Section 13

process.

Most importantly, the proposed rent should reflect the property's open-market rental

value. Tenants who believe an increase exceeds the market rent can challenge it through

the First-tier Tribunal. For landlords, this means the safest strategy in 2026 is not simply to choose a percentage. It is to carry out a proper rent review based on local market evidence, tenancy history, correct procedure, and long-term portfolio performance.

If you’d like to explore how this applies to your portfolio, our team can guide you. Get in

touch if you’d like a deeper assessment of your options. Essential Management Ltd and

Stay & Co are here to support landlords in navigating these changes confidently and

strategically.

Disclaimer: This article provides general guidance only. Always seek independent legal, tax, or financial advice before making decisions affecting your property or business.

Frequently Asked Questions (FAQs)

Q: Can I increase rent by 10% in 2026?

A: There is no fixed cap on rent increases in England. A 10% increase is not automatically

unlawful, provided the new rent does not exceed the open-market rental value for

comparable properties in your area. However, any increase must be proposed using the

correct Section 13 (Form 4A) procedure and give at least two months' notice.

Q: What happens if my tenant challenges the rent increase?

A: Tenants have the right to challenge a rent increase by applying to the First-tier Tribunal. The tribunal will assess the open-market rent for the property. Under the new rules, the tribunal can only confirm your proposed rent or reduce it to the market rate; they cannot increase it above your proposed figure.

Q: Can I still use the rent review clause in my tenancy agreement?

A: For most assured private tenancies in England, traditional rent review clauses are no

longer effective after 1 May 2026. You must use the statutory Section 13 procedure (Form 4A) to increase the rent.

Q: How much notice do I need to give for a rent increase?

A: You must provide your tenant with at least two months' notice before the new rent takes effect, using the prescribed Form 4A.

Q: Do these rules apply to all types of accommodation?

A: These rules primarily apply to assured private tenancies in England. Different regulations may apply to social housing, supported living, and serviced accommodation (short-stay), as well as properties located in Wales, Scotland, and Northern Ireland. Always seek tailored advice for your specific property type and location.