When can landlords increase rent?

As a landlord, one of the most crucial aspects of managing your property is setting, tracking and adjusting rent. While increasing rent can be a necessary step to cover rising costs or reflect market conditions, it's important to understand the rules and best practices to ensure you're compliant and maintain positive tenant relationships.

In June 2025, the UK rental market continued its upward trajectory, with the average monthly rent reaching £1,339, reflecting a 7.0% annual increase according to the Office of National Statistics.

In this article, we’ll explore the rules for England, Wales and Scotland, show how timing and process differ by tenancy type, and explain how landlord insurance and rent guarantee products support, but do not replace, compliant rent-setting. If you want your increase to be accepted without souring the relationship with good tenants, treat this as a step-by-step guide.

Why increase rent?

There are several reasons why you might consider raising rent:

• Rising costs - Property maintenance, insurance, and other expenses may increase over time.

• Market value adjustments - Local rental rates may rise, warranting an adjustment.

• Property improvements - If you’ve made significant upgrades, increasing rent can reflect the enhanced value.

• Keeping up with inflation - Regular, modest increases in rent can help maintain your property’s profitability.

Understanding the right timing and method for rent increases is essential to avoid disputes and keep your tenancy running smoothly.

When can you increase the rent?

The timing depends on two variables. One, whether the tenancy is fixed term or periodic, and two the nation within the UK.

In England, you cannot normally raise rent mid-fixed term unless the tenancy agreement has an explicit rent review clause, and even then the clause must be fair and clear about method and timing. Otherwise, you wait until the fixed term ends and either agree a new rent by consent or let the tenancy roll into a periodic where you can use a section 13 notice. For a periodic tenancy, you can usually increase the rent no more than once every 12 months, and you must use the statutory Form 4 notice with the correct notice period. There are changes coming with the Renter's Rights Bill, so pay close attention.

In Scotland, for Private Residential Tenancies (PRTs) landlords may increase rent once in any 12-month period, must give at least three months’ written notice on the prescribed form, and tenants can challenge the proposal within 21 days for adjudication against local market evidence. PRTs are the default for most private lets in Scotland.

In Wales, the Renting Homes (Wales) Act 2016 reshaped the landscape. For most periodic standard contracts, landlords must use the RHW12 “notice of variation of rent”, give written notice, which is commonly two months, and respect the rule that increases cannot happen less than 12 months apart. The precise notice and formality matters. Get it wrong and the change can be thrown out.

England in depth - fixed term vs periodic, and how section 13 actually works

During a fixed term, the safest route is agreement by consent, ideally documented as a memorandum or addendum. If your tenancy has a rent review clause, it must be transparent and set out a fair mechanism. For example, a formula linked to an index or “market rent determined reasonably”. Clauses that allow arbitrary changes or multiple increases with no method are at risk under unfair terms rules. If there is no review clause or the tenant declines to agree, you generally wait for the end of the fixed term to propose a new rent or allow the contract to become periodic and then use section 13.

For periodic tenancies, section 13 of the Housing Act 1988 provides a statutory route. The essentials:

• Use the prescribed Form 4 (“Landlord’s notice proposing a new rent under an assured periodic tenancy”).

• Serve one section 13 notice in any 12-month period.

• Give the correct notice length. At least one month for monthly or weekly periods. Six months if the tenancy period is yearly. Otherwise, notice broadly aligns with the rental period.

• The new rent must begin at the start of a tenancy period.

Tenants can refer the proposal to the First-tier Tribunal (Property Chamber) if they believe it’s above market, the tribunal will set a market rent based on comparable evidence, so over-reaching can backfire.

A common error is trying to apply a section 13 during the first 12 months of a new tenancy or attempting a mid-period effective date. Both misfires are easily challenged and will undermine confidence with your tenant.

Scotland in depth - the Private Residential Tenancy (PRT) pathway and the right to challenge

With a Private Residential Tenancy, Scotland provides a clear, tenant-protective pathway:

• Landlords may propose a new rent once every 12 months.

• They must use the Scottish Government Rent Increase Notice and provide at least 3 months’ notice.

• Tenants can challenge within 21 days to Rent Service Scotland, triggering adjudication.

• The adjudicator looks at market comparables and can set a lower or sometimes higher figure than proposed.

Scotland previously operated temporary rent protections during the cost-of-living emergency. Those measures have ended, and rent setting has reverted to the PRT framework with adjudication safeguards while longer-term reforms are debated. The takeaway for landlords is to prepare local comparables and a reasoned narrative before serving notice.

Wales in depth - Renting Homes, RHW12 and spacing of increases

Since 1 December 2022, Renting Homes (Wales) recast most ASTs into standard contracts. For ongoing periodic arrangements, proposed rent changes are made by serving RHW12 and allowing the statutory notice commonly two months before the increase takes effect. As in other nations, no more than once every 12 months is the norm, and the increase must follow the contract’s variation rules. Landlords should cross-check that the written statement of contract aligns with RHW12 service and timing.

What a “valid” rent increase looks like and how it fails

Across the UK, successful increases share four characteristics:

1) The timing is lawful - You respect the fixed-term/periodic distinction and the annual spacing rule. If you are inside a fixed term in England without a clear review clause, you do not serve section 13, you negotiate or wait. In Scotland you track the 12-month interval meticulously. In Wales, you observe RHW12 and spacing.

2) The notice is on the right form, fully completed - In England, it is Form 4, in Scotland, the Rent Increase Notice; in Wales, RHW12. Missing signatures, wrong dates, or an incorrect effective date are the classic own goals.

3) The notice period is correct - England typically one month for monthly/weekly periods, six months for yearly periods. Scotland three months. Wales commonly two months, so check your contract wording.

4) The amount is defensible - The law does not cap private market rent in England and Wales, but tribunals can cut back increases that are above market when challenged. In Scotland, tenants have an explicit adjudication path with market comparables at its core. Evidence beats gut feel here.

If any of the above fails, tenants can often refuse the increase or challenge it. For England that's via tribunal, Scotland it's via Rent Service Scotland, and in Wales it's by pointing out defective notice or relying on contract/statute. The practical cost of a failed notice is both a delay and potential reputational friction with a tenant that you may want to retain.

How to set the right number and keep the tenant

Purely legal compliance does not guarantee acceptance. Most tenants will accept a reasonable, clearly explained increase that reflects:

• Local comparables for similar size, finish and transport links, ideally within the same postcode sectors.

• Documented cost changes you shoulder, including service charges, insurance premiums, compliance upgrades.

• Property improvements that genuinely enhance value like a new boiler, better EPC rating, modernised kitchen.

Frame the proposal early, 6–10 weeks ahead of the intended date in England/Wales, or a full 3+ months in Scotland, using a courteous cover letter that explains the method and attaches comparables. Offer to discuss timing or a staggered approach. Even a modest concession reduces churn risk and voids, for example, slightly below the top-end comparable.

Free rent increase templates you can adapt

Cover email/letter (England, periodic tenancy):
“I propose to increase the rent for [property] from £[current] to £[proposed] per calendar month. This reflects current market levels for similar homes at [addresses or postcode], as shown in the attached comparables. I will serve the statutory section 13 notice shortly with an effective date of [date aligned to tenancy period]. If you have questions or prefer a phased increase, I am happy to discuss.”

Follow with a correctly completed Form 4 and diarise service and effective dates.

Cover email/letter (Scotland, PRT):
“I intend to increase the rent for [property] from £[current] to £[proposed] per calendar month. Enclosed is the prescribed Rent Increase Notice giving three months’ notice with an effective date of [date]. This is the first increase in [X] months, and the figure reflects local open-market evidence at [addresses/postcodes]. If you would like to discuss or see further comparables, please let me know. You have the right to refer this to Rent Service Scotland within 21 days.”

Attach the Scottish Rent Increase Notice.

Cover email/letter (Wales, periodic standard contract):
“I propose to vary the rent for [property] from £[current] to £[proposed] per calendar month. I enclose the RHW12 notice setting out the new amount from [date] in line with the Renting Homes (Wales) Act 2016. Please review the comparables attached and feel free to contact me to discuss timing or any questions.”

Attach RHW12.

How landlord insurance fits into rent increases and where it doesn’t

Landlord insurance is often misunderstood during rent reviews. It does not authorise or validate a rent increase, nor will it cover the losses from a defective notice or a rent hike that a tribunal reduces. That said, the right insurance stack is your financial seatbelt while you keep rents aligned to market and compliance:

• Buildings & property owners’ liability - Increases in rebuild costs and claims inflation have driven up premiums across the industry. If you have recently upgraded to meet safety or energy standards, mention that investment when justifying a rent revision. Tenants are more accepting when they can see concrete improvements.

• Loss of rent as part of buildings cover - This typically applies when the property is uninhabitable due to an insured peril and covers the rental income during reinstatement. This might be for example for fire or flood. It is not a substitute for rent guarantee or for a void caused by a tenant moving out after a rent rise.

• Rent guarantee insurance (RGI) - This is a separate product that can cover non-payment following a lawful rent increase, provided you meet the policy’s referencing conditions and serve notices correctly. It will not pay out if you attempted an invalid increase or failed to follow the legal process. Think of RGI as protection against arrears risk, not as permission to over-reach on price.

• Legal expenses - Useful for funding tribunal references, possession claims, or defences, but again, valid paperwork is the first line of defence.

As premiums and excesses fluctuate, keep your tenant communications transparent. Explain that prudent cover helps you maintain the property to a high standard and respond quickly when things go wrong. That context often smooths rent discussions, especially after you have handled repairs promptly in the past.

Evidence beats opinion, so prepare comparables

Before you serve any notice, assemble a pack that includes:

• Three to five live or very recent lets within the same micro-market. These are ideally same street or postcodes.

• Like-for-like attributes: bedrooms, floor area, EPC band, condition, outside space, parking, transport time.

• Notes on differences: if your flat lacks a balcony that comparables have, shade the figure accordingly. Tribunals and adjudicators notice these nuances.

In England, if a tenant challenges a section 13, the tribunal aims to set market rent for that property. Over-asking invites a haircut. In Scotland, adjudication follows the same logic against local evidence. The upshot is that you should ask for a defensible figure and you are more likely to get it without delay.

Common pitfalls that delay or derail increases

Trying to raise rent mid-fixed term without a proper clause - Unless the agreement includes a fair, transparent mechanism, you must wait.

Serving the wrong form or an incomplete one - Courts and tribunals are unforgiving about prescribed forms. Use Form 4 in England, the Scottish Rent Increase Notice, and RHW12 in Wales. Filled in accurately, dated correctly, and timed to the tenancy period. Links to the forms are provides in the Key sources to keep handy section of this article below.

Ignoring the spacing rule - England and Scotland are clear. One increase within any 12-month window via the statutory route. Wales practice also expects annual spacing under the standard contract.

Choosing an arbitrary figure - Without comparables you may succeed once, but repeated increases without evidence corrode trust and invite challenge.

Rushing the timetable - Work backwards from the effective date and add a buffer. In Scotland the three-month notice period catches out even experienced landlords.

Negotiation, retention and void risk

It is easy to fixate on the headline rent and overlook void risk, re-letting costs and works during turnover. A modest increase that a good tenant accepts may beat a higher rent that triggers a move-out followed by three weeks of zero income, cleaning, redecoration, compliance checks and fresh referencing. The “total yield” view generally rewards steady, evidence-based steps rather than jumps.

Consider offering options:

• A slightly lower figure for a 12-month renewal with a no-break clause.

• A phased uplift over two dates, agreed in writing.

• A rent held for six months in exchange for a longer commitment if your mortgage costs are forecast to fall when a fixed rate ends.

Document whatever you agree with a short addendum to avoid ambiguity later.

The compliance checklist before you serve a notice

1. Check the tenancy type and nation-specific rules.

2. Review the agreement for any rent review clause, including the wording, method, timing).

3. Diarise spacing to ensure at least 12 months since the last statutory increase.

4. Gather comparables and a short rationale for the figure.

5. Prepare the correct form

6. Count the days, three months in Scotland, in England and Wales follow the statutory/contractual minimums and align to the tenancy period.

7. Serve correctly using method allowed by your contract and by law.

8. Record service using a certificate of posting, proof of email if permitted, or hand-delivery note.

9. Update your insurer if your policy requires notification of material changes affecting sums insured or rent levels for loss-of-rent calculations.

10. Be ready to talk - Send the courteous cover letter and keep your comparables to hand.

Where we’ve cited rules above, they come from official guidance and leading advice bodies for England, Scotland and Wales.

FAQs

Can I raise the rent multiple times a year if the market is moving quickly?
Not via the statutory route. In England, section 13 is limited to once per 12 months; Scotland’s PRTs are also once per 12 months; Wales practice expects annual spacing under the standard contract.

Can I use a rent review clause to increase more often?
Clauses must be fair and transparent. Even where allowed, courts can strike down unfair terms; aggressive schedules invite disputes. Most landlords use annual cycles.

What if my tenant refuses?
If you served a valid notice and the tenant does not pay the new amount, you can pursue arrears and, as a last resort, possession, subject to national rules and any evolving legislation. If the notice was defective, start again with the correct process.

Will landlord insurance cover lost income if a tenant leaves rather than accept the increase?
No. Loss of rent under buildings insurance typically applies when the property is uninhabitable due to an insured peril. To protect against non-payment, consider rent guarantee insurance, which may respond after a valid increase and proper process, but it will not cure a defective notice.

Are there caps on private sector rent rises?
In England and Wales, not generally, though tribunals can reduce increases that exceed market levels. In Scotland, the core control is the adjudication right. Emergency rent caps have ended, with longer-term reforms still in discussion.

What about Northern Ireland?
Rules differ again and are outside the scope of this overview; seek NI-specific guidance.

Key sources to keep handy

For quick reference when you are preparing notices and checking timing, these are the most reliable entry points:

• England (landlords & tenants) - GOV.UK and Shelter guidance on rent increases and section 13/Form 4.

• Scotland - Scottish Government’s PRT Rent Increase Notice and guidance. Shelter Scotland’s detailed overview and challenge process.

• Wales - Renting Homes (Wales) overview and RHW12 usage explained in sector guidance. Shelter Cymru’s rent increase advice.

Bottom line

Landlords can increase rent when the tenancy type and national rules permit, but process is everything. Choose an evidence-based number. Serve the right form with the right notice. Space increases no more than once every 12 months through statutory routes. Frame the conversation early and fairly. Most tenants will accept a justified, well-timed change. Backstop your income risk with the right landlord insurance and, where appropriate, rent guarantee cover, but do not treat insurance as a substitute for legal compliance.

Handle those fundamentals and you will protect yield, retain good tenants, and avoid the costly reset that follows a defective notice.

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Disclaimer: This article is general guidance for private landlords in October 2025. Always check the latest official sources before serving notices, especially where legislation is evolving.