How to increase rent: a UK landlord's guide 2026 | August

How to increase tenants' rent: a landlord's guide

Increasing rent is the task self-managing landlords put off longest, and the delay is usually the costliest part. Across the self-managing landlords we work with in England, the most common pattern is a landlord who knows an increase is overdue, sometimes by a year or more, but keeps postponing because the conversation feels awkward with a tenant who pays reliably and looks after the property. The result is a rent that has drifted well below market, a property that barely covers its costs, and a landlord quietly subsidising the tenancy. Handled properly, a rent increase keeps a good investment viable and a good tenant in place. This guide sets out the full process: checking whether an increase is justified, setting a fair figure, serving a valid notice under the law as it stands in 2026, communicating with your tenant, and managing any pushback.

This article reflects the law in England following the commencement of the Renters' Rights Act 2025 on 1 May 2026. It has been reviewed against current GOV.UK guidance on rent increases and First-tier Tribunal (Property Chamber) practice by the August editorial team, which works with practising UK landlords across England and Wales.

Why landlords increase rent, and when it becomes necessary

A rent increase is a financial decision, not an arbitrary one. For most small landlords it reflects one or more specific pressures.

Mortgage costs are the most common trigger. Buy-to-let mortgage rates rose sharply from 2022, and many landlords who remortgaged in 2023 or 2024 saw their monthly interest payment climb steeply. Where the margin between rent and mortgage cost has compressed to the point where the property barely breaks even, an increase is a necessity rather than a choice. If a recent remortgage has changed your numbers, the buy-to-let mortgage calculator models the difference between your old and new payments so you can see your new breakeven rent.

Maintenance and insurance costs have risen on a similar curve. Tradespeople's labour rates and landlord insurance premiums have both increased materially since 2020, and routine work such as boiler servicing and electrical testing now costs more than it did.

Market drift is the quieter pressure. If you have held the same tenant for three or more years without an increase, your rent is very likely below the rate a new tenant would pay for a comparable property nearby. That gap is a subsidy you carry, and it widens every year you leave it.

None of these pressures entitles a landlord to raise the rent by any figure they choose. The increase must be to open market rent, it must be served by the correct legal route, and the tenant has the right to challenge it. The legal framework comes first, so it is worth being clear on the timing rules before you decide on a figure. Our companion guide on when landlords can increase rent covers the timing in detail, and the Renters' Rights Act tenancy landscape hub explains how the process sits within the wider reforms.

How much can a landlord increase rent in 2026?

There is no legal cap on how much a private landlord can increase rent in England. The only ceiling is open market rent: the rent a willing landlord would obtain from a willing tenant for the property at the time of the notice. If the proposed figure exceeds that, the tenant can refer it to the First-tier Tribunal, which will set the rent at market level and cannot set it any higher than the figure the landlord proposed.

That legal freedom is narrower in practice than it sounds, because the market sets the real limit. According to the ONS Price Index of Private Rents, average UK private rents rose by 3.5% in the 12 months to April 2026, with England also at 3.5%. Within England the range is wide: annual rental inflation was highest in the North East at 6.5% and lowest in London at 2.0% over the same period. An increase broadly in line with published rental inflation for your region carries the lowest risk of a tribunal challenge, because it reflects demonstrable, official data rather than your individual cost pressures.

Where your rent has fallen well behind the market, the relevant benchmark is not the annual inflation figure but the gap between your current rent and current open market rent for the property. Closing a 12% gap in one correctly evidenced step is lawful and often cleaner than several small rises, provided the new figure genuinely reflects local comparables.

Step 1: check whether your rent is actually below market

Establish that an increase is warranted before you decide to make one. An increase imposed on a tenant who already pays the market rate invites a tribunal challenge and risks losing the tenant for no gain.

Run a straightforward market comparison. Search Rightmove and Zoopla for properties currently available that are genuinely comparable: the same postcode or adjacent streets, the same number of bedrooms, and a similar condition and furnishing level. Use asking rents rather than completed tenancies, because asking rents reflect current demand. Aim for at least three to five direct comparables. If your rent sits within 5% of the midpoint of that range, you are at market. If you are 10% or more below, you have clear justification.

Condition matters as much as the comparables. A landlord who has kept the property in good repair, responded promptly to maintenance, and upgraded the kitchen or bathroom in recent years has a stronger case than one whose property has slipped, and a well-treated tenant is more likely to accept a reasonable increase than to use it as a reason to leave. To see what a new figure does to your return before you propose it, the rental yield calculator models gross and net yield at different rent levels, factoring in mortgage costs, maintenance, and voids.

Step 2: work out a fair figure

Once you know your rent is below market, the question is how much to add, and whether to do it in one step or in stages.

If your rent is close to market and you are simply keeping pace, an increase in line with regional rental inflation is the safest and most defensible move. If your rent has fallen well behind, a single correction to open market rent is usually cleaner than a sequence of smaller rises. A single, clearly explained increase avoids the friction of repeated negotiations, though it may prompt the tenant to weigh up whether moving is cheaper than staying. A phased approach over two years is gentler but needs two rounds of notice and two conversations. Most landlords with a long-standing good tenant find that one well-evidenced increase to market is accepted more readily than two or three in quick succession.

The rent increase calculator works out the new monthly amount at the percentage you are considering, shows the change clearly, and confirms that your proposed effective date satisfies the two-month notice requirement. That takes the arithmetic off the table so you can focus on the conversation.

Step 3: serve the correct notice

Since the Renters' Rights Act 2025 came into force on 1 May 2026, the Section 13 process using Form 4A is the only lawful way to increase rent without the tenant's written agreement. Contractual rent review clauses no longer carry any effect, and raising the rent by renewing a fixed term is no longer possible because fixed-term assured tenancies have been abolished.

The rules are precise:

• You can increase rent only once in any 12-month period.

• You must give the tenant at least two months' written notice using Form 4A.

• The proposed rent must be at open market rate, not above it.

• The tenant can refer the proposed increase to the First-tier Tribunal before the effective date if they believe it exceeds the market rate.

If the tenant refers the increase, the First-tier Tribunal (Property Chamber) determines the open market rent for the property. The tribunal cannot set a rent higher than the figure you proposed, so there is no penalty for proposing a sensible number, but it can set a lower one, which is why local evidence matters. Referrals are also less common than landlords fear: many are settled informally once both sides have exchanged comparable evidence, which is the strongest argument for preparing your comparables before you serve notice rather than after.

Keep a copy of Form 4A and proof of service, whether tracked post or a dated email with a delivery receipt. August's document management feature lets you upload and timestamp the notice against the property record, so you have a clean audit trail if the increase is ever contested.

Step 4: talk to your tenant before you serve notice

The single most effective thing a landlord can do to secure a smooth increase is to speak to the tenant before the formal notice arrives. A Form 4A landing without warning reads as a shock, and the tenant's first instinct is to check whether they can find somewhere cheaper, regardless of whether your figure is reasonable. A short conversation in advance, explaining why the increase is happening, what evidence you have looked at, and what the new figure will be, gives the tenant time to absorb the information before it becomes a formal legal step.

The conversation is an explanation, not a negotiation. Set out what comparable properties are renting for, what has happened to your costs, and the figure you intend to propose. Invite questions, but avoid offering the increase as a tentative suggestion that can be bargained down, because that signals the figure was never genuinely market-based. The tone of this conversation reflects the wider relationship: a landlord who has been responsive and professional throughout the tenancy will find a reasonable increase accepted far more readily than one carrying a backlog of unresolved repairs.

Step 5: confirm the increase in writing

Follow the conversation with a written rent increase letter or email that records the proposed new rent, the effective date, and a brief, factual rationale. Keep it professional, and resist apologising for the increase in a way that undercuts it; if your research supports the figure, present it plainly.

A clear rent increase letter sets out:

• The property address.

• The current rent and the proposed new rent.

• The percentage increase.

• The effective date, confirming at least two months from the date of the letter.

• A short explanation of the rationale, citing market comparables, cost increases, or both.

• A note that you will serve the formal Form 4A separately.

Sending the letter first and the Form 4A a few days later lets the tenant take in the information in a context that feels like communication rather than legal procedure. If the new rent starts mid-month or partway through a rent period, the first payment may cover a partial period; the pro-rata rent calculator works out the exact transition amount so there is no ambiguity on either side.

Step 6: handle pushback and disagreement

Some tenants accept the increase without question. Others ask for more time, propose a lower figure, or signal they may go to tribunal. None of these requires you to back down, but each needs a measured response.

If the tenant asks for a lower figure, you can agree to one if you choose; there is no obligation to hold the exact figure in the notice. Before you do, check whether the counter-proposal rests on evidence. Comparable properties that genuinely undercut your research are worth taking seriously; a request simply to pay less is not, and you are entitled to hold your position.

If the tenant threatens to leave, treat it as a negotiating response. If your rent is genuinely at market, another landlord will charge the same, and the tenant's real calculation is whether the cost and disruption of moving outweigh the saving. A tenant who leaves over a fair, market-rate increase would most likely have left before long in any case.

If the tenant refers the increase to tribunal, that is their right and not a cause for alarm. Both sides submit evidence of comparable local rents, and a proposal backed by current Rightmove and Zoopla listings, ideally supported by completed rental data, puts you in a strong position. Prepare those comparables before serving notice, not after.

If the tenant falls into arrears once the new rent takes effect, that is the outcome to avoid, and it is why affordability matters as much as market rate. Where a tenant's income genuinely cannot stretch to the new figure, an agreed lower rent or a tribunal-determined one is better for both sides than pushing to a rent that tips the tenancy into difficulty. Our guide on handling rent arrears covers what to do if payments do fall behind.

From what we hear from landlords using August, the great majority of well-handled increases are accepted without a tribunal referral or a tenancy ending. The difficult cases cluster around three avoidable mistakes: serving the notice with no prior conversation, choosing a figure not grounded in local evidence, and carrying unresolved maintenance issues at the moment of the increase. When advance communication, a market-rate figure, and a well-kept property are all present, tenants almost always stay.

Using August to manage the process

August's document management feature stores the Form 4A, the accompanying letter, and proof of service against the property record, all timestamped, so the evidence is immediately to hand if the increase is challenged. The rent tracking feature, connected to your bank account through open banking, detects the first payment at the new rent level and flags it against the tenancy automatically, with no manual entry and no risk of recording the new amount incorrectly. Where the effective date falls mid-month, rent tracking handles the partial payment against the correct period, so the transition from old rent to new is recorded cleanly from day one.

The broader context in 2026

The rental market in 2026 operates under the most significant legislative change in a generation. With fixed-term tenancies abolished and Section 21 removed, landlords no longer have a no-fault notice to fall back on if a rent negotiation goes badly. That makes the quality of the landlord-tenant relationship, and the professionalism of how an increase is handled, more commercially important than it has ever been. Landlords who approach increases transparently, with evidence and genuine regard for the tenant's position, are the ones who keep good tenants for longer. That retention has a direct value: a single void month at the new rent typically costs more than the entire saving a tenant achieves by negotiating a slightly lower increase. The right increase, presented the right way at the right time, is not a confrontation. It is a fair adjustment that keeps a good investment viable and a good tenancy intact.

Frequently asked questions

How much can a landlord increase rent in 2026? 

There is no legal percentage cap in England. The increase must be to open market rent for the property, and a tenant can refer a higher figure to the First-tier Tribunal, which will set the rent at market level and cannot exceed the amount the landlord proposed. In practice, an increase in line with regional rental inflation, around 3.5% nationally in the year to April 2026, carries the lowest risk of challenge.

How much notice do I have to give for a rent increase? 

At least two months' written notice, served on Form 4A, with the new rent starting at the beginning of a new period of the tenancy. The increase can be made only once in any 12-month period.

Can a tenant refuse a rent increase? 

A tenant cannot simply refuse a valid increase, but they can challenge it. If they believe the proposed rent exceeds the market rate, they can refer it to the First-tier Tribunal before the effective date, and the tribunal determines the open market rent.

Do I still need a Section 13 notice if my tenancy agreement has a rent review clause? 

Yes. Since 1 May 2026, contractual rent review clauses no longer take effect, and Form 4A under Section 13 is the only route to increase rent without the tenant's written agreement. If you would rather understand the timing rules in full first, you can start for free and manage notices, documents, and rent tracking in one place. Get started with August.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.