Understanding How Rent Increase Notice Works In the UK 2026?
UK rental prices have continued to rise since 2021, after COVID-19 restrictions were eased. This trend added a 36% increase to rental costs between 2020 and 2025. Now, it’s the landlord’s legal right to increase the rent due to high demand and limited supply of rental houses. Many landlords in the UK are still issuing rent increase notices on the wrong form, regardless of how reasonable the amount is.
Therefore, landlords in London now work with our professional estate agents to handle the rent increase process correctly from the start.
What is a Rent Increase Notice?
The notice of rent increase gives landlords the right to notify tenants of the rise in rent. In this letter, they inform the tenants about the forthcoming rent increase date and amount. The landlord mentioned in this written communication the reasons for increasing the rental amount. If the tenants are not comfortable with this notice of uplift rent, they can reject it.
Types of Rent Increase Notice Templates UK
There are various types of rent increase letter templates available, including:
Standard Rent Increase Notice Template
Most landlords use this for annual rent adjustments and for a straightforward rent increase on a periodic tenancy. This is a simple, fully pre-designed template. It covers the basics, current rent with new rent amount and the date when the increase will take effect.
Annual Rent Increase Notice Template
In this template, landlords inform tenants about the annual rent increase. It is also a ready-made document. This is used when the tenancy agreement already includes an annual rent review clause. This template also covers the new rent and the date it applies from.
Conditional Rent Increase Notice Template
This type of rent increase template differs from others because it’s used only when certain conditions are met. For example, a change in local market rates and property improvements being completed can trigger an increase in rent.
With our Landlord Support Services, we offer hassle-free rent adjustments for landlords in London.
What Are The Conditions Under Which Your Landlord Can Send a Rent Increase Notice?
Here are the legal conditions under which the property holder can increase the rent.
Rent increases by agreement with the tenant
If your tenancy agreement does not mention a rent increase clause, then you have no right to raise the rent automatically. So, you must talk to your tenant first and explain why you want to increase the rent. If the tenant agrees to this agreement, the easiest way to make it official is to create a new fixed-term tenancy agreement. That includes the new rent amount. Our letting services can help you draft compliant agreements
Rent increase by a contractual clause
In this contract, this rule is written that allows the landlord to increase the rent. This contractual agreement includes a rent review clause. This clause explains when the landlord can review the rent and how any increase will be calculated. It also sets out the notice period the landlord must give before the new rent takes effect.
Rent increases during the periodic portion of a contract
According to the periodic portion of a contract, your tenancy agreement will renew automatically. In this case, for the landlord, it is compulsory to follow a rent review clause written in this agreement. When there is no rent-increase rule written in the agreement. Then the landlord must use the official Section 13 form to increase the rent legally.
Rent increases during the fixed term of a tenancy agreement
It does not happen commonly to increase the rent within the fixed time period of tenancy. But it’s possible for landlords if their tenancy agreement includes the rent review clause. By this, landholders have legal allowance to do it. If your agreement does not include it, then you have a need to wait until this commitment ends. After this, you can increase the rent.
General Rent Increase Notice Rules
Before issuing a rent increase notice, landlords must confirm that the process is legally valid and the amount is justified.
Check Legal Requirements
Before increasing rent, a landlord must make sure they are following all UK housing laws. Usually, Section 13 for periodic tenancies requires landlords to give the right notice period and make sure that the tenancy agreement permits rent increases.
- For monthly tenancies, the minimum notice period is one month.
- For annual tenancies, the six months’ notice is required.
There is no legal cap for private landlords in England. However, the increase in the rent still needs to be reasonable and justified. Landlords must look at comparable rents in the local market, the size, location and condition of the property before issuing a rent increase notice.
Renters Rights Act 2025 Changes
Under the Renters’ Rights Act 2025, from 1st May 2026, landlords can issue a rent increase notice once per year, but Assured shorthold tenancies and contractual rent review clauses will be abolished. All the rent increases will follow the statutory Section 13 process, with at least two months’ prior notice being issued.
The Renters’ Rights Act provides safeguards to the tenants in a way that any increase in the rent can’t exceed the current market rate. Tenants can challenge the amount if they believe it’s unfair. A first-tier tribunal can overturn an increase if it considers it excessive and unjustified; therefore, the figure needs to be defensible.
| Tenancy Type | Minimum Notice Required | Correct Method | Can Tenant Challenge? |
| All Tenancies (England) | 2 months (mandatory) | Section 13 notice (only legal method) | Yes, First-tier Tribunal |
| Frequency Rule (All Tenancies) | Once per year, maximum | Section 13 | Yes, First-tier Tribunal |
| Former Fixed-Term Tenancies | Not applicable (all become periodic) | Section 13 only | Not Applies |
| Rent Review Clauses | Not allowed under the new system | Invalid | Not Applies |
How your Landlord Must Propose a Rent Increase?
If the agreement does not include a rent-increase procedure. Then the landlord has three legal options:
- Renew the tenancy at the end of the fixed term with a higher rent.
This means when your fixed-term contract ends, they can offer a new agreement that includes the increased rent. - Agree on a rent increase with you directly and put it in writing.
- Tenants and the landlord must sign this written agreement to make it valid.
- Use the official “Landlord’s notice proposing a new rent” (Section 13 notice).
This can only be used after the fixed term has ended and the tenancy becomes periodic.
How To Write The Rent Increase Notice Letter
Here’s a step-by-step guide to composing a rent increase letter:
Title
Start the letter with your full legal name, address, and contact information. This is not optional because, without any legal identification,n the notice can be challenged. For example: John Smith, 14 Oak Road, London, SW1A 1AA, 07700 900123 at the very top of the letter.
Date:
Mention the date on which you are sending this notice. Never write “today” or leave it blank. For example: 1 August 2026.
Tenant’s information:
In the letter, also mention the renter’s info like their address and call them with their full name.
Intro section:
Keep the opening short and neutral. Always show respect to your tenants and appreciation for their following the lease agreement.
Clarify the aim
Explain your purpose for writing this letter to increase the rent.
Suggested rent rise
State the recent rent amount, the increased rent amount, and the date from which the rent will be increased. You need to include:
For Example: Your current monthly rate is £950, and the suggested increase is £1025. This increase will take effect from 1 October 2025.
Reason:
Explain your reason for increasing the amount of rent in detail. Give a brief, actual reason and keep it honest to the point. You need to state:
For example, this reflects the current market rate for similar properties in the local area.
Legal Form Notice
If you are issuing a Section 13 rent increase notice, say so clearly in the letter and attach the completed form. You need to include the reference to Section 13 of the Housing Act 1988 and the confirmation that the form is attached. For example, this notice is served under Section 13 of the Housing Act 1988. The completed form is enclosed.
Present a new lease term.
If the tenants have a fixed tenancy agreement, then you can offer them renewal of the lease term.
Closing paragraph:
In this paragraph, express your gratitude to the tenants and show your wish to continue this tenancy agreement. And also show concern if they have any questions or issues, contact us without any hesitation. This section must include:
For example, if you need to dispute this increase, you may apply to the First-tier Tribunal for a determination.
Contact details
Close with a clear and professional invitation to get in touch and mention
For Example, please contact me on [number] or [email] if you have any questions.
Conclusion
A rent increase notice, according to the legal requirement, helps to reduce the possibility of disputes between landlords and tenants. It is the responsibility of the landlord to follow proper notice periods, forms, and processes for a rent increase. If a tenant disputes the increase, the First-Tier Tribunal will look at the process and verify or determine the rent amount accordingly.
Our Property Management services guide landlords through the process efficiently. Proper handling of rent changes helps maintain trust and long-term tenant relationships.
Frequently Asked Questions About Rent Increases
There is no legal increase in the rent amount specified, but it’s the responsibility of the landlord to do this fairly. Landlords should keep in mind the local rents for this purpose. Under the Renters’ Rights Act 2025, with fixed terms being converted into periodic tenancies, landlords can only increase rent once every 12 months legally.
The leaseholder should give enough time to tenants for the rent amount to go up. There is a different time period for the different tenancy period. Such as for monthly, weekly, or fortnightly rent, you should inform the tenants at least 1 month ago. For the annual rent for 6 months, and for the quarterly period of 3 months in advance.
According to the Renters’ Rights New Change rules, landlords have no “no-fault” evictions under Section 21. All the fixed-term tenancies will be replaced by periodic tenancies, and rent will be governed more consistently using Section 13 notices. Bidding above the advertised asking rent is banned.
You can serve a section 13 notice to increase the rent on tenants in two ways
– By post: Send the post via first-class mail and keep the proof of sending mail from the post office.
– On the other hand, you can directly give to the tenants by hand, but with a witness. If tenants refuse to take it, then click the photo of the notice that you post through the letterbox.
There is no specific amount of rent increase for private landlords. But for the social housing tenants, there is a cap, which is currently 7.7% for England and Northern Ireland and 6.7% for Wales for 2024 to 2025.
Yes, it can be a fair rent increase, but not exceed the limit of the tenant’s wage cost and inflation. It depends on the local market. Otherwise, you can lose your profitable tenant for the sake of some money. If he cannot afford the rent increase amount.
No, the landlord can not increase the rent without informing the tenants about it. If the landholder does this, he will face legal consequences. It’s compulsory to send the written form in which the increased amount is mentioned.
Tenants can challenge a rent increase at the tribunal when the increased amount is too high and not easily payable for tenants. In this case, the FTT will decide the rent amount after negotiation. The application must be made before the new rent takes effect,, as once the effective date passes and the tenant pays the new amount, it becomes accepted.
If a tenant does not agree to a rent increase, then the landlord can not force the tenant. In this condition, landlords should wait for the end of the tenancy. If landlords force tenants to accept the increased rent can cross the legal harassment threshold under UK housing law.
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