What Is A Fair Rent Increase In The UK?

Fair rent increases are back in the spotlight for 2025. With expectations around the Renters’ Rights Bill including limits on rent hikes and stronger tenant challenge rights, knowing how much and when you can increase rent is pivotal. 

Landlords typically saw annual rent rises of around 3–5%, matching inflation. But with the economic climate changing so fast, being tied to the good old "market rate" isn’t always enough. 

Now more than ever, your tenancy agreement should include information on rent increases as well as when and how you intend to do a rent review. When you are allowed to review the rent and how much you increase it will likely be dependent on the property, tenancy type, and the length of the tenancy. 

This article outlines a few of the central considerations for landlords around rent increase notices, what is a fair rent increase percentage in the UK, and how frequently landlords can implement a rent increase.

Why And When Can A Landlord Increase The Rent?

As a landlord, you will want to keep the rent in line with the current market rates. Charge too much and you’ll put off prospective tenants and have high vacancy rates. But charge too little and you are losing money, this paired with recent regulatory changes could make it incredibly hard to make a profit. For example, Section 24 got rid of mortgage interest as an allowable expense, EPC changes increase landlord overheads, and the Renters' Rights Act squeezes landlords even further.

Landlords can’t increase the rent as much as they want just because costs increase.

Instead, rent increases should keep a property in line with current market rates. Begin the process of doing a comparative market analysis, if other, similar properties in the area are charging £1,000 a month then this is a good guideline for your own property. Additionally, if the average rent increase in the area is 3% then you should keep your rent increase in line with this.

Additionally, landlords can’t raise the rent whenever they want.

When a landlord can raise the rent depends on the type of tenancy.

• For periodic tenancies, ie. a tenancy that’s on a rolling week to week, or month to month basis, landlords can’t generally increase the rent more than once a year.
• For fixed-term tenancies a landlord can only raise the rent once the tenancy period ends (unless otherwise stipulated in the tenancy agreement).

As a general rule, landlords should include a rent increase clause in the tenancy agreement that stipulates when an increase will happen and the notice period that will be given before the rent increase.

If the landlord does not include a rent review clause in the tenancy agreement, or this has expired, the landlord may still be able to raise the rent by using a section 13 notice.

What Is a Fair Rent Increase in 2025?

A “fair” rent increase should strike a balance between staying profitable and not pricing your tenants out. In the UK, there’s no legal definition of what “fair” means, but there are clear guidelines you’ll want to follow. 

In 2025, this is especially important as more local councils and housing organisations scrutinise landlords’ rent-setting practices. With renters having more rights to challenge “unreasonable” increases (particularly under assured tenancies and under the upcoming Renters’ Rights Bill), fairness isn’t just a moral argument but a compliance one.

A fair rent increase should reflect rising costs, improvements to the property, and the current local market, not just arbitrary percentages.

In Manchester’s M14 postcode, for instance, two-bed flats that rented for £950/month in early 2023 are now averaging £1,100 in 2025. If you're still charging £950, a £50–£75 bump could be considered reasonable, especially if you've added value (e.g., double glazing or modern white goods).

Some landlords back their increases with local listings. One user on r/UKLandlords put it plainly:

 “Screenshots from Zoopla shut down 90% of objections.”

Inflation is expected to average around 3.2% in Q4 of 2025 (ONS), and that can guide modest rises. But always consider property condition and local demand. Drastic jumps without justification can be challenged and lost.

How To Increase Rent with a Rent Increase Notice?

There are several ways for a landlord to increase the rent, including:

• Stating an increase of rent when renewing a fixed-term tenancy.
• Agreeing to a rent increase with a tenant. There must be a written record of this agreement that is signed by both parties.
• Use a form called a ‘Landlord’s notice proposing a new rent’ otherwise known as a section 13 rent increase notice which increases the rent after the fixed term has ended.

Section 13 – Notice Of Rent Increase Form

The Housing Act 1988 provides for a Section 13 Notice to be issued by the Landlord to the Tenant in order to increase the rent after the initial fixed period has expired and the tenancy is in the statutory periodic tenancy, it cannot be used to increase the rent during the fixed term of a tenancy.

It’s also important to note that it cannot be used until 12 months after the start of the tenancy and cannot be used to increase the rent more than once every 12 months.

This route is not available in those cases where the Tenancy Agreement already provides stipulated terms for rent increases.

The Section 13 Notice must provide the following details:

• Details of the landlord and/or his agent
• The tenants’ details
• The details of the Property
• The amount of the increased rent and any other increased charges
• The proposed commencement date

For a full breakdown of rent increase laws and the legislation involved, visit gov.uk.

Rent Increase Process: Step-by-Step Checklist

Before serving a rent increase notice, complete this checklist:

1. Research local market rates

• Check Rightmove, Zoopla, OpenRent for comparable properties 
• Document 3-5 similar properties with current asking rents 
• Consider your property's condition vs. comparables 

2. Calculate fair increase percentage

• Current CPIH inflation - Current wage growth
• Your property vs. market: Are you above or below
• Proposed increase: Calculate % increase

3. Check your tenancy type 

• Fixed-term or periodic? 
• Is there a rent review clause? 
• When did tenancy start? 
• When was last rent increase? 

4. Verify rent increase timing requirements

• Until April 30, 2026: 1 month notice (monthly tenancies) 
• From May 1, 2026: 2 months notice (all tenancies) 
• Must be 12 months since last increase 
• Must start on correct rental period date 

5. Choose correct rent increase method

• Until April 30, 2026: Rent review clause, mutual agreement, or Section 13 
• From May 1, 2026: Section 13 only

6. Prepare documentation

• Complete Section 13 Form 4 with correct dates 
• Gather market rate evidence 
• Keep copies of all correspondence 

7. Communicate professionally

• Explain the reason for the increase 
• Provide market comparisons 
• Give the tenant time to consider 
• Be open to discussion (but maintain Section 13 as backup)

When Can A Landlord Implement A Rent Increase?

1. During a Fixed‑Term Assured Shorthold Tenancy (AST)

• Only if the tenancy agreement contains a valid rent review clause, or the tenant gives written agreement to a new rent increase.
• Otherwise, no rent increase can occur until the fixed term ends.
  

2. Once the Tenancy Becomes Periodic

After the fixed term ends, if the tenancy becomes a rolling periodic tenancy, the landlord can increase rent via a Section 13 notice (Form 4):

• Frequency: Once per 12-month period   .
• Notice periods (minimum):
  • 1 month if rent is paid weekly or monthly
  • 3 months for quarterly payments
  • 6 months for annual payments  .
• The new rent takes effect on the next rent due date, matching the tenancy period.
  

3. Within the First 12 Months

Even in a periodic tenancy, the landlord cannot serve a Section 13 notice until 12 months have passed since the previous rent started  .

How the Renters' Rights Act 2025 Changes Rent Increases

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. The first major reforms take effect on 1 May 2026, fundamentally changing how landlords increase rent.

• ‍Section 13 becomes mandatory: All rent review clauses become void. Every rent increase must use the formal Section 13 notice (Form 4)—informal agreements will have no legal effect.‍
• Notice period doubles: Landlords must give 2 months' notice (up from 1 month currently) before any rent increase takes effect.‍
• Once per year maximum: Rent can only increase once every 12 months—no more frequent adjustments, even with tenant agreement.‍
• All tenancies become periodic: Fixed-term ASTs are abolished. All tenancies automatically roll month-to-month indefinitely.‍
• Stronger tenant challenge rights: Tenants can refer increases to the First-tier Property Tribunal if above market rate. The tribunal can set rent lower, the same, or even higher than proposed.‍
• Additional reforms: Section 21 "no-fault" evictions banned, rental bidding prohibited, blanket pet bans removed.

The bottom line is, from May 2026, rent increases require proper planning, market evidence, and longer lead times. The informal approach ends. But this is only Phase 1 of implementation.

Phase 2 (2026-2028) introduces the Private Rented Sector Database—a national register landlords must join—and mandatory ombudsman membership for dispute resolution. Awaab's Law will also take effect, requiring landlords to fix reported hazards within strict timeframes (14 days for emergency repairs, 7 days to investigate complaints).

Phase 3 (2030 onwards) brings the Decent Homes Standard to the private rental sector, setting minimum quality requirements for all properties. The government expects this earliest in 2035, with EPC C minimum energy efficiency becoming mandatory for all tenancies from 2030.

These rolling reforms mean compliance requirements continue to increase through the decade—and with them, landlord costs. Fair, evidence-based rent increases will be essential to maintaining viable rental businesses while meeting tenant affordability expectations.

What Is A Fair Rent Increase In The UK?

Landlords must keep rent increases fair and realistic—meaning aligned with local market levels. For example, if similar nearby properties charge £500/month, it would be unreasonable to jump straight to £700/month.

Typical Rent Increase Ranges

• Most annual rent increases in the UK fall between 3–5%, roughly tracking inflation or wage growth.
• However, during periods of high inflation or tight rental markets, increases of up to 7% have been observed.
• In many regions, actual annual increases tend to be 2–4%, though hot markets like East Anglia or Northern Ireland may hit 4–5%.

A moderate annual rent increase of 3–5% aligns closely with inflation, helping landlords maintain income without overburdening tenants. These modest adjustments lower the risk of vacancy or tenant turnover. By contrast, steep hikes—say 10% or more—often exceed what tenants can afford, can push rents above local market rates, and increase the likelihood of disputes or tribunal challenges.

How to Determine the Right Increase

1. Research local comparables — check rents on websites or ask local agents.  
2. Base your increase on inflation or wage growth — annual CPI or wage rise rates (e.g. 6–8%) offer a useful benchmark.
3. Keep records — keep evidence such as listings or agents’ valuations to support increases in case of challenge.  

Average Rent Increase In The UK: Data

What this rent increase data shows:

• 2020-2021: Rent increases remained modest (1-2%) during the pandemic, with London actually seeing negative growth (-0.7% in 2021) as remote work reduced demand for city-centre properties.
• 2022: The rental market began accelerating, with increases climbing to 3-4% as demand returned and supply tightened.
• 2023-2024: Peak rental inflation hit, with the UK averaging 9.0% annual increases in 2024—the highest on record. London saw 10.2% growth, while the North East peaked at 9.4%.
• 2025: Rent increases are moderating, falling back to 5.0% nationally by October 2025. This suggests the "rental boom" is cooling as rents hit affordability limits.

What's "fair" changes with market conditions. In 2020-2021, a 2% increase was typical. In 2024's tight market, 8-9% became common. By late 2025, 4-6% increases align with current trends—tracking closer to wage growth (4.8%) and inflation (4.1%) rather than the double-digit spikes of 2024.

Can A Tenant Refuse A Rent Increase?

If a rent increase is particularly large or the tenant believes it is above a fair rent increase, they can refuse an increase in rent and appeal to a tenancy tribunal to challenge a section 13 rent increase. The tenant will be required to continue paying the current rent amount until this decision is made.

For advice for tenants on how to tackle a rent increase dispute, go to the Shelter England’s guide.

If a tenant and landlord cannot reach an agreement on rent, the tenant may decide to move on.

Final Thoughts On Fair Rent Increase in the UK

A rent increase is one of the most common reasons tenants choose to move out—especially if it feels excessive or unjustified. This can lead to longer vacancy periods for landlords and unnecessary stress for tenants. To avoid this, rent increases must be fair, reasonable, and supported by local market data. It’s essential to give tenants proper notice, and be aware that they can challenge the increase through the Residential Property Tribunal if they believe it’s unfair.

Conducting an annual market rent analysis helps ensure your property remains competitively priced. Aiming for an increase of 3–5% annually typically balances economic needs with tenant affordability. In times of high inflation, 5–7% may be acceptable—but only if supported by strong comparables and clear documentation.

Tools like Landlord Studio can simplify this process. Use built-in rent tracking to monitor historical payments and trends, lease expiry reminders to time rent reviews appropriately, and customisable email templates to communicate changes professionally. You can even schedule rent changes in advance to ensure increases take effect smoothly and legally. With the right tools and a fair approach, rent increases don’t have to mean losing great tenants.

Create your free Landlord Studio account today.

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Rent Increase Rules UK: FAQs

What is a fair rent increase in the UK?

‍A fair rent increase in the UK is typically around 3–5% per year, roughly tracking inflation (CPIH) and wage growth. However, fairness depends heavily on local market conditions. If your property is far below the current market rate, a higher increase may be justified. Tenants can challenge any increase at the First-tier Tribunal if they believe it exceeds local market rents.

Can my landlord increase rent during a fixed-term tenancy?

‍Not unless your tenancy agreement includes a rent review clause or you mutually agree to amend the contract. From 1 May 2026, all fixed-term assured tenancies will convert to periodic, meaning rent can only be increased annually using Section 13.

How many times can a landlord increase rent in a year?

‍A landlord can increase rent once every 12 months using a Section 13 notice. Until 30 April 2026, a rent review clause may allow otherwise, but from May 2026, rent review clauses become void and Section 13 becomes the only lawful method.

How much notice is required for a rent increase in the UK?

‍Currently, landlords must give at least 1 month’s notice for monthly tenancies (or 6 months for yearly tenancies). From 1 May 2026, the minimum notice increases to 2 months for all periodic tenancies under the Renters’ Rights Act 2025. Notice must be served using Form 4 – Section 13 and start on the correct rent due date.

What is the average rent increase per year in the UK?

‍Average increases vary by year and region. Historically, annual rises have ranged from 1.5% (2020) to 9.0% (2024). As of October 2025, the UK average sits at 5.0%. Regional examples:

• North East: 8.9%
• Yorkshire & The Humber: 3.8%
  Across 2019–2025, the smoothed annual average is approximately 4–5%.

What is the most a landlord can raise rent in the UK?

‍There is no legal maximum for private rent increases in England. However, increases must remain in line with local market rents. Tenants can challenge any rise they believe is excessive. Increases above 10% typically face scrutiny unless the property was significantly under-market or has undergone major improvements.

Is a 10% rent increase legal in the UK?

‍Yes. There is no legal cap. However, tenants can challenge the increase if it is above market rate. A 10% increase should be supported by clear evidence—such as a significant gap to market value or substantial improvements to the property.

What are the rent increase rules in the UK?

Current rules (until 30 April 2026) allow increases via:

• A rent review clause,
• Mutual agreement, or
• A Section 13 notice.

From 1 May 2026, changes under the Renters’ Rights Act mean:

• Section 13 becomes the only legal method,
• A maximum of one increase every 12 months,
• A minimum 2-month notice, and
• All rent review clauses become invalid.

Tenants may challenge increases that exceed local market rates.

Can a landlord increase rent every year?

‍Yes, provided the legal process is followed. Annual increases of 3–5% in line with inflation are common, but any increase must align with local market rents.

What if I can’t afford the rent increase?

‍You have several options:

1. Negotiate a smaller or phased increase.
2. Challenge it at the First-tier Tribunal if it exceeds market rent.
3. Give notice to end the tenancy (2 months from May 2026).
4. Seek advice from Shelter or Citizens Advice.

If similar local properties cost more, a tribunal challenge may be unsuccessful.

Can I be evicted for refusing a rent increase?

‍No. Until 30 April 2026, landlords could use Section 21, but this is abolished from 1 May 2026. After that, landlords must rely on valid grounds such as rent arrears or moving back into the property (Ground 1). Simply refusing an increase is not grounds for eviction, though failing to pay rent could lead to eviction for arrears.

How do I challenge an unfair rent increase?

‍You can apply to the First-tier Tribunal before the increase takes effect. Complete Form Rent 1 and provide evidence of comparable local rents. The tribunal will set a fair market rent, which may be lower, the same, or sometimes higher than the proposed amount. Continue paying your current rent until the tribunal makes its decision.

What makes a rent increase unreasonable?

‍An increase is likely unreasonable if it significantly exceeds local market rents, especially if the property is poorly maintained or the increase far surpasses inflation without justification. Discriminatory increases (e.g., targeting tenants claiming benefits) may also be unlawful.

Do landlords have to justify rent increases?
Legally, no justification is required when serving a Section 13 notice. However, providing context—such as rising costs or improvements—helps maintain good relations. If challenged, landlords must provide evidence that the new rent reflects market rates, including comparable listings or valuations.

Can my landlord increase rent if nothing has been fixed?

‍Yes, repairs are not a legal prerequisite to a rent increase. However, if the tenant challenges the increase, the tribunal can consider the property’s condition. Poorly maintained properties typically command lower rents. Serious disrepair issues should also be reported to the local council’s environmental health team.

What happens after I receive a Section 13 notice?

‍You can:

1. Accept the increase and pay the new rent from the effective date,
2. Challenge it at the First-tier Tribunal before the increase takes effect, or
3. End the tenancy by giving notice (1 month now; 2 months from May 2026).

Continue paying the current rent until you accept the increase, a tribunal decision is made, or the tenancy ends.