What changed on 1 May 2026
The Renters’ Rights Act introduced significant changes across the private rented sector. Most existing assured shorthold tenancies automatically became assured periodic tenancies, meaning many tenancies no longer have a fixed term end date.
This affects landlords who previously relied on fixed term tenancies, break clause wording or Section 21 as part of their property management approach. After 1 May 2026, landlords must have a legally valid reason to evict tenants, using the relevant legal grounds rather than a no-fault notice.
Existing tenancies should now be reviewed alongside any written tenancy agreement, rent schedule and possession strategy.
Can landlords still increase rent
Landlords can still increase rent under the Renters’ Rights Act, but the process is more restricted and must follow the correct statutory route.
For an assured periodic tenancy, a landlord can generally increase rent once per year. To do this, they must give the tenant at least two months’ notice using Form 4A, which is the prescribed notice for proposing a new rent.
The proposed increase must reflect the open market rent for the property, rather than an arbitrary figure or an increase imposed through a rent review clause.
How much can a landlord increase rent in 2026
There is no fixed national percentage cap on rent increases in 2026 for most private tenancies. Instead, any proposed increase must be based on the open market rent for the property.
This means there is no automatic rule that a rent increase is acceptable simply because it is below a certain percentage. The increase should reflect what similar properties in the area are genuinely achieving, taking account of size, condition, location and specification. Landlords should gather evidence of comparable rents before serving notice, particularly where the proposed increase is substantial.
If a tenant believes the proposed rent is above market value, they can challenge it at the First-tier Tribunal. The tribunal may then decide the lawful rent, based on the evidence available. Landlords should therefore keep clear records, including local listings, comparable property details, letting agent valuations and advertised rent records, before serving a rent increase notice.
How assured periodic tenancies work
An assured periodic tenancy continues on a rolling basis, usually monthly if rent is paid monthly. This means the tenancy continues without a fixed end date unless it is ended lawfully.
Tenants can end an assured periodic tenancy by giving two months notice. Landlords, however, must rely on valid reasons and the correct legal process if they need to recover possession.
This change is important for rent planning. A landlord can no longer assume that a tenancy will end automatically at the end of an academic year or fixed term. The tenancy agreement must be managed in line with the new rules.
Using the correct notice
A proposed rent increase must be served using the correct notice. For most assured periodic tenancy arrangements, this means Form 4A under the section 13 process of the Housing Act 1988.
The notice should state:
- The current rent.
- The proposed rent.
- The date the new rent will take effect.
- The required notice period.
- The property and tenancy details.
A valid notice reduces the risk of dispute and helps landlords demonstrate compliance if the matter later reaches tribunal or court.
Rent review clauses
A rent review clause may still appear in a tenancy agreement, but landlords should not rely on it to override the statutory rent increase process introduced by the Renters’ Rights Act.
A private landlord cannot use a rent review clause to increase rent in a way that avoids the required legal procedure. This applies both to newly drafted tenancy agreements and to existing written tenancy agreements already in place.
Where a rent review clause conflicts with the new rules, landlords should seek professional advice before serving notice or requesting higher payments. Taking action without following the correct procedure could result in the increase being challenged or deemed invalid, creating unnecessary disputes and delays.
Existing written tenancy agreements
Landlords with existing written tenancy agreements must provide tenants with the government-produced Information Sheet about changes to their tenancy before 31 May 2026.
Where a tenancy was agreed before 1 May 2026 without a written record, landlords must provide written information setting out key terms of the tenancy. This may include rent, payment frequency, tenancy starting date and other required details.
If a letting agent acts on the landlord’s behalf, the agent may also have duties to provide tenants with the required information sheet.
Rental bidding and advertised rent
The Renters’ Rights Act also changes how landlords market rental property. A written property advertisement must state a clear, specific rent, giving prospective tenants certainty about the advertised price from the outset.
Rental bidding is restricted, meaning landlords and letting agents should not encourage, invite or accept applicants to offer rent above the advertised amount. This is intended to prevent competitive bidding from pushing rents beyond the price originally stated.
For landlords, this makes accurate pricing before marketing more important. Rather than relying on competing offers to increase the final rent, landlords should assess the market rate in advance and advertise the property at a realistic, evidence-based figure. This can help reduce compliance risks, avoid disputes and support a more transparent lettings process.
Rent in advance and payments
Rent in advance should be handled carefully under the new rules. Landlords should make sure the tenancy agreement clearly records when rent is due, how it is paid and what counts as a missed payment.
For a new tenancy, written information should be consistent with the tenancy agreement. Any rent increase later in the tenancy should follow the statutory process, rather than informal agreement unless properly documented.
Tribunal challenges
Tenants can challenge a proposed rent increase at the First-tier Tribunal if they believe the new rent exceeds the market rate for the property.
Where an application is made before the proposed increase takes effect, the new rent will generally not apply until the tribunal has reached a decision. The tribunal will assess factors such as the property’s condition, location, size, specification and evidence of comparable local rents before determining the lawful rent.
For landlords, preparation is important. Evidence supporting the proposed increase should be gathered before serving notice, rather than after a challenge has been raised. Comparable property listings, letting agent valuations and recent advertised rents can all help support the landlord’s position if the increase is disputed.
Possession and rent arrears
Rent increases can affect possession planning where arrears arise following an increase in monthly rent. If a tenant falls behind with payments, landlords may need to rely on Section 8 grounds to recover possession and pursue unpaid rent.
With Section 21 no longer available to evict tenants, possession claims now depend on specific legal grounds supported by correct notices, accurate records and clear evidence. A possession order will only be granted where the landlord can demonstrate compliance with the required legal process.
Cases involving rent arrears, anti-social behaviour or breach of tenancy agreement should therefore be documented from the outset. Maintaining clear records of rent schedules, tenant communication, complaints, inspections and tenancy breaches can help strengthen a potential Section 8 claim and reduce the risk of delays or disputes during possession proceedings.
How AST Assistance can help
The Renters’ Rights Act has placed greater pressure on landlords to manage rent increases, tenancy documents and possession procedures correctly. A single procedural error can result in invalid notices, delayed rent arrears recovery, tribunal disputes or enforcement action.
AST Assistance provides specialist, landlord-focused support designed to protect your rental income, reduce compliance risks and keep tenancy management under control. Our team can assist with tenancy agreements, rent increase procedures, Section 8 possession claims, rent arrears, mediation and wider tenancy management matters.
Whether you need to update tenancy documents, respond to a dispute or take action against a tenant, AST Assistance gives you clear, practical guidance at each stage.
For professional advice on Renters’ Rights Act compliance, rent increases or tenancy changes, contact AST Assistance today on 01706 619954.
