How to Increase Rent Legally in England and Wales

You cannot simply tell a tenant the rent is going up. The route depends on where the tenancy is in its life cycle.

During a fixed term

Rent can only increase during a fixed term if the tenancy agreement contains a rent review clause setting out how and when, or if the tenant agrees in writing. Otherwise you wait until the fixed term ends.

At renewal

When a fixed term ends you can offer a renewal at a new rent. If the tenant signs, the new rent applies from the new term. If they do not respond, the tenancy continues as a statutory periodic tenancy at the old rent — and you move to the Section 13 route.

Periodic tenancies — Section 13

For a periodic tenancy, rent can be increased once per year using a Section 13 notice in the prescribed form. For a monthly tenancy you must give at least one month’s notice, and the new rent must start on the first day of a rental period. Serve it correctly and keep a record of service.

If the tenant objects

The tenant can refer the proposed rent to the First-tier Tribunal before the start date. The tribunal sets a market rent — which can be lower, the same, or occasionally higher than you proposed. Increases pitched at genuine local market levels are rarely worth a tenant referring; increases far above market are the ones that end up at tribunal.

The practical approach

A modest annual increase communicated early, with a short explanation and comparable local listings, keeps good tenants and avoids voids. A void month typically costs more than a year of holding rent slightly below the theoretical maximum. Under the Renters Rights reforms all increases move to the Section 13 route, so getting comfortable with the process now is time well spent.