How to Increase Rent Legally and Fairly

Rent increases are a normal part of property management, but they need to be handled correctly — both legally and relationally. Get the process wrong and the increase may be invalid; handle it insensitively and you risk losing a good tenant.

The assured-periodic framework

From 1 May 2026, most private assured tenancies in England are assured periodic tenancies. A landlord proposing a rent increase uses the Section 13 process and current Form 4A. Contractual rent-review clauses do not replace this statutory route for the new regime.

Core requirements include:

• Use the prescribed Form 4A
• Give at least 2 months' notice
• Do not increase rent in the first year of the tenancy
• Do not increase rent more than once per year
• The proposed rent must be the market rate — the tribunal will assess this if challenged

Transitional cases involving a rent increase proposed before 1 May 2026 can follow saved rules. Check the latest government guidance or take legal advice if the notice crosses the commencement date.

How much to increase

Base your increase on:

• Market comparables: What are similar properties currently advertised at?
• Inflation: CPI provides a baseline — increases at or below CPI are rarely challenged
• Property improvements: If you've upgraded the kitchen, bathroom, or energy efficiency, a larger increase is justifiable
• Tenant quality: A reliable tenant who pays on time and looks after the property is worth keeping — don't price them out over a marginal increase

How to communicate the increase

Even when serving a formal Form 4A, a personal conversation or email beforehand goes a long way:

• Explain why the increase is happening (rising costs, market rates, property improvements)
• Give advance informal notice before serving the legal notice
• Be open to discussion — a tenant who feels heard is less likely to leave
• Address outstanding repairs and explain any property improvements that support the proposed market rent

The cost of getting it wrong

If a good tenant leaves because of an aggressive increase, you face: void period costs (1-2 months' rent), re-letting expenses (advertising, referencing), and the risk that the next tenant is less reliable. A modest, fair increase that keeps a good tenant is almost always better financially.

Track rent reviews in Tendmere

Tendmere's rent tracking records payment history and rent-review evidence. The app prepares a draft Form 4A, but landlords remain responsible for checking the current prescribed form, service method, dates and case-specific requirements.