Fair rent

"Fair rent" has two distinct meanings in UK private renting, and the distinction matters because they apply to entirely different groups of landlords and tenants.

The Rent Act 1977 definition

In its technical legal sense, a fair rent is a registered, controlled maximum rent that applies to regulated tenancies under the Rent Act 1977. Regulated tenancies are a legacy tenure that arose from tenancies created before 15 January 1989, when the Housing Act 1988 came into force and replaced regulated tenancies with the assured shorthold tenancy system. A relatively small number of these tenancies still exist, most commonly where a sitting tenant has remained in a property for decades.

For these tenancies, the landlord cannot simply set or increase the rent at will. Instead, a rent officer employed by the Valuation Office Agency assesses and registers a fair rent for the property, taking account of its age, character, location, and state of repair. Crucially, the fair rent calculation applies a discount for scarcity, the premium a landlord could otherwise obtain simply because of high local demand. The registered figure, plus any subsequent uplifts, is the maximum lawful rent. Charging more than the registered fair rent is a criminal offence.

A landlord who wishes to increase a fair rent cannot use the Section 13 process that governs rent increases for modern assured periodic tenancies. Instead, the landlord must apply to re-register the fair rent through the rent officer service. There is a minimum period, generally two years, between registrations unless there has been a significant change in the condition of the property or its circumstances.

From a landlord's perspective, properties on registered fair rents typically generate materially lower income than comparable properties let on modern tenancies, because the scarcity discount can be substantial in high-demand areas. They are also harder to sell, since a buyer inherits the sitting tenant on the controlled rent. Modern compliance duties still apply in full, the tenant has the same rights to habitable conditions, the same protections under the Renters' Rights Act 2025 (including access to the PRS Ombudsman and eventual PRS Database registration), and the same protections under energy efficiency rules as any other private tenant.

August's rent tracking feature records every payment against the registered fair rent figure, making it straightforward to demonstrate compliance with the lawful maximum if the amount is ever queried.

"Fair rent increase" in the modern context

Most people searching for "fair rent" or "fair rent increase" are not dealing with a Rent Act regulated tenancy at all. They are asking what constitutes a reasonable or proportionate rent increase under modern tenancy law, whether they are a landlord considering a Section 13 notice or a tenant wondering whether a proposed increase is justified.

For modern assured periodic tenancies, which now covers all private tenancies in England after the Renters' Rights Act 2025 came into force on 1 May 2026, there is no registered fair rent and no scarcity discount. Rent is set by the market at the start of the tenancy. Increases are governed entirely by the Section 13 process: the landlord must serve Form 4A giving at least two months' notice, and increases can only be made once every 12 months. The tenant can challenge any proposed increase at the First-tier Tribunal, which will assess whether the proposed rent is above the open market rate for comparable properties.

There is no statutory cap on the size of a Section 13 increase, provided the proposed rent is at or below the open market rate. "Fair" in this context is essentially a shorthand for "what the market would bear", which the tribunal will assess by reference to comparable lettings in the local area.

For a full guide to how and when landlords on modern tenancies can increase rent, including the Section 13 process, the two months' notice requirement, and the First-tier Tribunal challenge route, see the August guide to when landlords can increase rent.

Frequently asked questions

What is a fair rent under the Rent Act 1977?

A fair rent is a registered maximum rent set by a rent officer at the Valuation Office Agency for properties let on regulated tenancies, a legacy tenure dating from before January 1989. The registered figure incorporates a discount for scarcity and acts as a legal ceiling: charging more is a criminal offence. A landlord wishing to increase a fair rent must apply to re-register through the rent officer service, not through the Section 13 process that applies to modern tenancies.

What is a fair rent increase for a modern tenancy?

For modern assured periodic tenancies in England, there is no registered "fair rent." Rent is set by the market and can only be increased once every 12 months using a Section 13 notice (Form 4A) with at least two months' notice. The tenant can challenge any increase at the First-tier Tribunal if they believe it exceeds the open market rate for comparable properties. There is no statutory cap on the percentage increase, provided the proposed rent is supported by market evidence.

Does fair rent still apply in England?

Yes, to a small number of properties let on regulated tenancies created before 15 January 1989 where the tenancy has continued without interruption. These are relatively rare. The Rent Act 1977 fair rent mechanism does not apply to any tenancy created on or after that date, which is now governed by the assured tenancy framework and, from 1 May 2026, the Renters' Rights Act 2025.

Can a landlord evict a regulated tenant?

Regulated tenancies carry much stronger security of tenure than modern assured periodic tenancies. A landlord seeking possession of a regulated tenancy must establish one of the specific grounds in the Rent Act 1977, most of which are discretionary. The practical difficulty of obtaining possession is one reason why properties with sitting regulated tenants are typically sold at a discount.