How Much Can a Landlord Increase Rent?

Rent increases are often tricky to navigate and emotionally charged for both landlords and tenants. While landlords are entitled to adjust rents to reflect market conditions, they must follow strict legal guidelines. Tenants, on the other hand, have the right to question or challenge increases they feel are unfair.

But what makes an increase unfair, and how do you inform tenants of your intention to raise rents? In this post, we’ll set out the circumstances under which landlords can raise rent in the UK and the steps they’ll need to take.

When Can a Landlord Increase Rent in the UK?

The ability to increase rent depends on the type of tenancy agreement in place and whether any specific clauses address rent reviews.

Periodic Tenancy Agreement

For periodic tenancies, which renew on a rolling basis (e.g., monthly or weekly), landlords can propose a rent increase once every 12 months unless there is a rent review clause in the tenancy agreement. If this clause is present, the terms of the clause will determine how often rent can be increased. This also applies to tenancies that have continued on a rolling basis following the end of their fixed term. 

Fixed-term Tenancy Agreement

Rent increases are more restricted for tenancies that are within their fixed term, as the terms of the tenancy agreement generally lock in the fee for the entire fixed term. However, a landlord can increase the sum if there is a rent review clause in the agreement or if both parties agree to an increase.

What Is a Fair Rent Increase?

Although there isn’t a specific legal definition for a “fair” increase, it’s generally considered fair if it matches the market value of similar homes in the area. The increase should also consider factors like the property’s condition, location, and any extra features it offers. Additionally, it should consider inflation and other living costs while being reasonable enough not to cause financial strain for tenants.

The relevant inflation rate for rental prices is CPIH (the Consumer Prices Index, including owner-occupiers’ housing costs). CPIH inflation rose by 3.5% in the 12 months preceding November 2024, so an amount in line with this figure would be safely deemed “fair.”

How Much Notice Needs to Be Given for a Rent Increase?

The required notice period for a rent increase depends on the type of tenancy agreement. For a periodic tenancy, landlords must give tenants at least one month’s written notice if the fee is paid monthly, or four weeks’ notice if paid weekly.

Increases for fixed-term tenancies must follow the notice period set out in the tenancy’s rent review clause.

How Should a Landlord Propose an Increase in Rent?

First, landlords should review the tenancy agreement to confirm whether it permits an increase through a rent review clause. If there is no rent review clause and your tenant has a fixed-term tenancy, you can’t increase the rent unless your tenant agrees. If your tenant has a periodic tenancy with no review clause, you can implement the increase via a Section 13 notice.

Next, it’s important to communicate with tenants early. Providing plenty of notice and explaining the reasons behind the increase, such as rising costs, inflation, or changes in market conditions, can help tenants understand the rationale.

What Is a Rent Review Clause?

A rent review clause is a term in a tenancy agreement that allows the landlord to adjust the figure during the tenancy, typically at predefined intervals. This clause is common in long-term agreements to account for inflation or changes in market conditions. For example, the clause might allow for annual reviews tied to a percentage increase or changes in local market rates.

What Is a Section 13 Notice?

A Section 13 notice is a formal way for landlords in England and Wales to propose a rent increase for tenants on a periodic tenancy. This process is used when the tenancy agreement does not have a rent review clause.

The notice must be in a prescribed format and include specific details, such as the proposed new amount and the date it will take effect. Landlords need to give tenants the appropriate amount of notice for the increase and must ensure the amount is “fair” and in line with local market conditions.

Tenants have the right to challenge a Section 13 notice if they believe the proposed increase is unreasonable. This is done through the First-tier Tribunal (Property Chamber) in England or the Residential Property Tribunal for Wales, where both the tenant and landlord can present their case.

What Makes a Section 13 Notice Invalid?

A Section 13 notice can be invalid if it fails to meet the legal requirements or proper procedures. Here are some common errors:

1. Incorrect Format: The notice needs to be completed using the official prescribed form. A handwritten or informal letter won’t be enough, as using the wrong form invalidates the notice.
2. Insufficient Notice Period: Landlords must give the correct notice period before the rent increase takes effect. Any less than that, and the notice will be unenforceable.
3. Non-Compliance with Tenancy Rules: If the tenancy agreement already has a rent review clause, the landlord can’t use a Section 13 notice to increase rent.
4. Unfair Rent Increase: The proposed figure must align with local market rates. Excessive or unjustified increases could be challenged and deemed invalid.
5. Tenancy Type Misalignment: Section 13 notices only apply to periodic tenancies, so using one for a fixed-term tenancy is not possible.

How to Respond to a Valid Section 13 Notice?

If you receive a Section 13 notice, here’s how to respond:

1. Review the Notice: Carefully check the notice for accuracy and compliance.
2. Assess Fairness: Research local market rents to see if the proposed increase is reasonable. If it’s significantly higher than comparable properties, you may have grounds to challenge it.
3. Negotiate with the Landlord: Before taking formal action, consider discussing the increase directly with your landlord. Many disputes can be resolved through communication and compromise.
4. File a Challenge: If you disagree with the increase, you can apply to the relevant tribunal to challenge it. The tribunal will assess whether the proposed rent is fair based on market conditions, but you’ll need to keep paying your current rent until the tribunal makes a decision.

Frequently Asked Questions

How Much Can a Landlord Legally Raise the Rent in the UK?

The amount a landlord can increase rent in the UK depends on the tenancy type and the agreement terms. For periodic tenancies, increases must be fair and reflect market rates. Fixed-term increases require a rent review clause or tenant agreement. Landlords must follow the legal notice periods and regulations applicable to the type of tenancy.

What Is the Maximum Rent Increase Allowed in the UK?

At present and until 1 May 2026 there’s no strict cap on rent increases unless you’re in a Rent Act-protected tenancy. For most agreements, the increase must align with market rates and be considered “reasonable”. Tenants can challenge rises they believe are excessive through a tribunal if necessary.

In November 2025 the Renters Rights Act 2025 became law. The act is only being implemented from 1 May 2026 however this legislation is going to considerably change the legal position in relation to rent increases and other aspects- limiting rent rises and changing many aspects of landlord and tenant relationships. Please review our other content for more details regarding this. 

What Is the Most a Landlord Can Raise Rent?

There are currently no legal maximum for rent increases in most cases, but landlords must ensure increases are fair and reasonable, reflecting market rates. Tenants can contest excessive increases without justification, especially if the landlord hasn’t followed the proper procedures for implementing the rise.

The position is going to change from 1 May 2026 however when the government have announced the implementation of the Renters Rights Act 2025. Please review our further content for more details regarding this.

Final Thoughts

The legal position is subject to change, and is changing. In particular Landlords, letting agents and property investors should pay close attention to the impact of the Renters Rights Act 2025, due to be implemented on 1 May 2026. The law is changing and the changes will impact much of the above. If you need advice on managing rent increases or handling tenancy issues, contact Helix Law. Our expert solicitors act nationally and will be happy to provide the tailored support you need.