One of the biggest concerns landlords have about the Renters' Rights Act 2025 (c. 26) is whether it introduces rent controls. The short answer is no. The RRA does not cap rents or limit how much you can charge. You can still charge market rent — but the process for increasing rent is now strictly regulated, and the meaning of "market rent" matters more than ever.
Yes, You Can Charge Market Rent
The RRA does not impose rent controls in the traditional sense. There is no cap on the level of rent you can charge when you first let a property, and there is no maximum percentage by which you can increase rent each year. The principle remains that landlords are entitled to charge whatever the open market will bear. What the Act does is regulate the process by which rent is increased during a tenancy, ensuring it is transparent and open to challenge.
The Section 13 Process
Under the RRA, the only lawful way to increase rent is by serving a Section 13 notice under the Housing Act 1988, as amended. You can increase rent once per year, you must give at least two months' notice, and the proposed increase must reflect the market rent for the property. Rent review clauses in tenancy agreements are void. You cannot increase rent by informal agreement, by letter, or by simply telling the tenant the rent is going up. The Section 13 notice is the sole mechanism.
What "Market Rent" Actually Means
Market rent is the rent that a willing landlord and a willing tenant would agree on for the property in the open market, on the same terms as the current tenancy. It is assessed by reference to comparable properties in the same area. Importantly, the market rent is assessed on the assumption that the property is in its current condition — you cannot inflate the figure to account for improvements the tenant has made at their own expense. Equally, you should not undervalue the property. The goal is a figure that reflects what the property would realistically achieve if let on the open market today.
How the Tribunal Assesses Market Rent
If a tenant refers your proposed rent increase to the First-tier Tribunal (Property Chamber), the Tribunal will determine the market rent independently. It considers comparable rental evidence, the condition of the property, its location, the terms of the tenancy, and any other relevant factors. The Tribunal is experienced in assessing market rent and will look at actual evidence rather than assertions. Under the Renters' Rights Act, the Tribunal cannot set the rent above your proposed figure — but it could set it at any level below, including below the rent the tenant is currently paying, meaning you could end up receiving less than before you served the notice. Landlords should consider this risk carefully before serving a Section 13 notice. Landlords who present well-organised comparable evidence tend to achieve better outcomes.
Comparable Evidence Is Key
The strength of your rent increase proposal depends on the quality of your comparable evidence. Before serving a Section 13 notice, research what similar properties in your area are currently letting for. Look at properties of a similar size, type, condition, and location. Online portals, local letting agents, and recent Tribunal decisions in your area are all useful sources. Keep a record of the comparable evidence you rely on, because if the tenant refers your increase to the Tribunal, you will need to present it.
No Above-Market Increases
While there is no rent cap, the system is designed to prevent landlords from increasing rent above the open market level. If a tenant challenges your proposed increase at the Tribunal and the evidence shows it is above market rent, the Tribunal will set the rent at the market level. This acts as a natural check. Proposing a realistic figure that is supported by evidence is always a better strategy than aiming high and hoping the tenant will not challenge it.
No Rent Review Clauses
This bears repeating because it catches many landlords out. Under the RRA, rent review clauses in tenancy agreements have no legal effect. Even if your existing agreement says the rent increases by a fixed percentage each year or in line with inflation, that clause is void from 1 May 2026. The Section 13 process replaces all contractual rent increase mechanisms. If you want to increase the rent, you serve a Section 13 notice. There is no other lawful route.
Take Action
Use our Rent Increase Calculator to plan your next Section 13 increase and check your timeline. Generate your complete document pack for a Section 13 notice template and an RRA-compliant tenancy agreement. For a full overview of the new law, read our Plain English Guide to the Renters' Rights Act 2025.