"The Renters' Rights Bill Part 3" - Rent Increases Under Section 13: The New Rules

The Renters’ Rights Bill is introducing a major change to how landlords can increase rent. Under the new rules, Section 13 will become the only legal method for raising rent in periodic tenancies. This means landlords can no longer rely on rent review clauses, fixed-term renewals, or private agreements with tenants.

While this change aims to create a fairer and more transparent system, it also limits landlord flexibility and increases the risk of rent disputes. So, how can landlords stay compliant, ensure fair rent increases, and avoid financial losses? Let’s break it down.

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What’s Changing?

❗️ No More Fixed-Term Rent Increases

• Traditionally, landlords could negotiate rent increases at the end of a fixed term or include rent review clauses in tenancy agreements.
• With fixed-term ASTs being abolished, these methods will no longer be valid—rent increases must follow Section 13.

❗️ Section 13 Becomes the Only Rent Increase Method

• Landlords can only increase rent using a formal Section 13 notice.
• This applies to all periodic tenancies, including those that were previously fixed-term.

❗️ Extended Notice Period for Rent Increases

• Landlords must now give at least two months’ notice (instead of one) before a rent increase takes effect.

❗️ Tenants Can Challenge Rent Increases More Easily

• If tenants believe the new rent is above market value, they can appeal to a tribunal.
• The tribunal may reject the increase if it finds the rent is higher than comparable local properties.

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Implications for Landlords

⚠️ Loss of Flexibility in Adjusting Rent

• Landlords can now only raise rent once per year and must follow strict legal procedures.
• No more informal agreements or mid-term rent reviews.

⚠️ Risk of Rent Disputes & Tribunal Challenges

• If rent is deemed too high, tenants can challenge it in a tribunal, leading to delays or a ruling against the landlord.
• Landlords must justify increases based on local market rates.

⚠️ Tighter Timelines for Rent Reviews

• Since rent can only be increased once per year, missing deadlines means lost income for another 12 months.

⚠️ Increased Administrative Burden

• Landlords must issue formal notices correctly—errors could mean delays or rejection of the rent increase.

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How Landlords Can Adapt & Stay Compliant

✅ 1. Time Your Rent Increases Carefully

• Since rent reviews are now limited to once per year, landlords should plan ahead and review rental market trends regularly.
• Missing a rent review deadline could mean waiting another 12 months before increasing rent.

✅ 2. Ensure Rent Increases Are Market-Aligned

• Use local rental market data to justify increases and avoid tenant disputes.
• If tenants appeal to a tribunal, landlords must prove that the rent increase is fair compared to similar properties.

✅ 3. Issue Section 13 Notices Correctly

• Form 4 (the official Section 13 notice) must be completed accurately and served correctly to tenants.
• Mistakes could result in delays or a failed rent increase.

✅ 4. Consider a Managed Service for Rent Reviews

• Managing rent increases under the new system requires precision and compliance expertise.
• A professional property management service can handle rent reviews, ensuring timely and legally sound rent increases.

✅ 5. Protect Your Income with Rent Guarantee Insurance

• With stricter rent rules and possible disputes, financial security is more important than ever.
• Rent Guarantee Insurance (included in our managed service) ensures landlords get paid on time even if tenants default or appeal a rent increase.

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How We Can Help

Navigating rent increases under Section 13 can be time-consuming and legally complex. Our fully managed servicemakes rent reviews hassle-free by:

• Monitoring rent review deadlines so you never miss an increase.
• Handling Section 13 notices correctly to avoid legal mistakes.
• Using market data to set fair and justified rent adjustments.
• Providing Rent Guarantee Insurance to protect your income.

Want expert support with rent increases? Get in touch today and let us handle the hard work—so you can focus on growing your rental income stress-free!