With the Renters Reform Bill's move to periodic tenancies, what are the new legal requirements for landlords regarding notice periods for rent increases, and how often can rent be increased now?
Quick Answer
The Renters' Rights Bill will mandate a minimum two-month notice for rent increases, which can only occur once every 12 months, regardless of the tenancy's periodic nature.
## Understanding New Rent Increase Regulations and Tenancy Structures
From 1 May 2026, the Renters' Rights Act 2025 abolishes Section 21 'no-fault' evictions in England, fundamentally changing how landlords manage tenancies and review rents. This legislation moves all assured shorthold tenancies (ASTs) to a single system of periodic tenancies, meaning tenancies will no longer have a fixed end date unless specifically agreed otherwise. Landlords must now provide at least two months' written notice for any rent increase, and rent can only be increased once every 12 months.
This shift impacts existing assured and assured shorthold tenancies that commenced before 1 May 2026, as they will transition to the new periodic system. The notice period for rent increases becomes statutory, overriding any previous clauses in tenancy agreements that might have allowed for shorter notice or more frequent reviews. This means landlords must ensure their rent review procedures align with these new requirements to avoid legal challenges and ensure enforceability.
### How Do Rent Increases Work Under the New Act?
Under the Renters' Rights Act 2025, rent increases must adhere to a strict process. Landlords are required to serve a Section 13 notice (or a similar formal written notice if the tenancy agreement specifies a different method, provided it still meets the statutory requirements for notice period and frequency). This notice must clearly state the new rent amount and the date from which it will apply. The tenant retains the right to challenge the proposed rent increase at a First-tier Tribunal if they believe it is not in line with market rates for similar properties in the area.
This two-month notice period and 12-month frequency limit are mandatory for all periodic tenancies, which will now be the default for residential lettings. For instance, if a landlord wishes to increase rent on 1 July 2027, they must serve the notice no later than 1 May 2027. Any increase attempted sooner than 12 months since the last increase, or with less than two months' notice, will be invalid.
### Does This Affect All Buy-to-Let Properties?
Yes, these changes primarily affect all residential buy-to-let properties in England that operate under assured shorthold tenancies. This includes new tenancies started after 1 May 2026 and existing tenancies that transition to the new periodic system.
Properties exempt from assured tenancy rules, such as holiday lets, company lets, or properties where the rent is genuinely below a certain threshold (e.g., £250 per year outside London), might not fall under these specific rent increase regulations. However, the abolition of Section 21 and the introduction of new possession grounds still create a different operating environment for these types of arrangements. For a typical BTL landlord letting to individual tenants on an AST, these regulations are directly applicable.
### Concrete Impact and Scenarios
1. **Standard BTL Rent Increase:** A landlord currently charging £1,000 per month on an AST, who last increased rent in March 2026, cannot implement another increase until at least March 2027. If they wish to increase it to £1,050 from 1 April 2027, they must serve notice by 1 February 2027, ensuring the two-month minimum. This provides the tenant with ample time to consider the increase or seek alternative accommodation.
2. **Short-Term Let Becoming Periodic:** A new tenancy starting in June 2026 for a 6-month fixed term will automatically become a periodic tenancy after those six months, by default. Any rent increase after the initial six months, or at any point thereafter, will then be subject to the two-month notice and 12-month frequency rule, even if the initial agreement specified a shorter review period.
3. **Invalid Rent Review Clause:** A tenancy agreement signed in 2024 that states rent can be increased every six months with one month's notice will have these clauses superseded by the new Act from 1 May 2026. The landlord will then only be able to increase rent once every 12 months, with a minimum of two months' notice, despite what the contract originally stated. Attempting to enforce the old clause would render the increase invalid and unenforceable.
## Advantages of Structured Rent Reviews
* **Clarity for Tenants:** The 2-month notice period offers tenants certainty, reducing disputes. This can foster a more stable landlord-tenant relationship.
* **Reduced Voids:** Fair and predictable rent increases, combined with longer notice periods, may encourage tenants to stay longer, thus reducing void periods and associated costs.
* **Legal Compliance:** Adhering strictly to the new 12-month interval and 2-month notice period ensures rent increases are legally robust, preventing challenges at the First-tier Tribunal.
## Potential Downsides for Landlords
* **Delayed Income Adjustment:** The 12-month frequency for rent increases means landlords cannot react as quickly to market rent surges or unexpected increases in operating costs (e.g., maintenance, insurance). This could impact cash flow.
* **Administrative Burden:** Landlords must meticulously track rent review dates for each property to ensure compliance with the 12-month interval and the two-month notice period. Incorrect timing can invalidate the increase.
* **Tenant Tribunal Challenges:** While tenants always had rights, the structured notice period and frequency may make it easier for tenants to challenge increases at the First-tier Tribunal if they feel the proposed rent is above market rates, adding potential legal costs and delays for landlords.
## Investor Rule of Thumb
Plan your rent reviews meticulously, adhering to the statutory two-month notice and 12-month frequency, as adherence ensures legal compliance and prevents costly disputes or invalidated increases.
## What This Means For You
These changes underscore the importance of understanding the latest legislative shifts in the UK property market. Most landlords don't face issues because of bad intentions, but rather from a lack of current, specific knowledge regarding compliance. Understanding these new rent increase rules is fundamental to maintaining a legally sound and profitable property portfolio. If you want to know how to structure your tenancy agreements and rent reviews to remain compliant and profitable under the new Renters' Rights Act, this is exactly the type of practical, up-to-date guidance we provide inside Property Legacy Education.
Steven's Take
The abolition of Section 21 and the move to periodic tenancies from 1 May 2026 is a significant change, particularly regarding rent reviews. The new mandate of two months' notice and a 12-month gap between increases means landlords need to be far more strategic with their rent setting. You can no longer just react to market conditions or rising costs as quickly. This puts the onus on diligent planning and ensuring your initial rent is set correctly. Also, remember that existing rent review clauses in agreements that contradict these new rules will be superseded. Your processes need updating to remain compliant and avoid invalid rent increases.
What You Can Do Next
Review all existing tenancy agreements and identify rent review clauses that may conflict with the new rules. Assess their enforceability against the Renters' Rights Act 2025.
Update your rent review calendar for each property to ensure compliance with the 12-month frequency limit and the two-month notice period for all future increases.
Familiarise yourself with the government's official guidance on the Renters' Rights Act 2025, available on gov.uk, particularly sections pertaining to rent increases and periodic tenancies.
Consider seeking legal advice from a property solicitor if you have complex tenancy agreements or are unsure about the implications of the new rules on your specific portfolio.
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