Landlords face rent setting challenges under Renters Rights Act 2025
UKPulse Property Desk
Landlords are encountering difficulties with setting and increasing property rents due to changes introduced by the Renters Rights Act 2025. The Act has abolished previous methods for rent increases, leaving landlords with only the statutory procedure.
- The Renters Rights Act 2025, effective from 1 May 2026, has changed how landlords can increase rent for assured periodic tenancies.
- Landlords must now use the statutory rent increase procedure, which tenants can challenge via the First Tier Tribunal (FTT).
- The FTT can reduce or confirm a landlord's proposed rent, but cannot increase it above the landlord's figure.
Landlords are facing significant issues with setting and increasing property rents following the implementation of the Renters Rights Act 2025. The Act, which came into effect on 1 May 2026, has abolished previous methods for rent increases in assured periodic tenancies (APTs).
Previously, landlords could increase rent through agreement with the tenant or via a 'rent review' clause. Now, the statutory rent increase procedure is the only option available to landlords.
A key challenge for landlords is that tenants can contest proposed rent increases by applying to the First Tier Tribunal (FTT). The FTT can then determine an open market rent, potentially reducing the landlord's proposed rent if it is deemed above market rate, or confirming it if it reflects or is below market rent. The FTT cannot, however, increase the rent beyond the landlord's initial figure.
Landlords are now required to provide evidence to the tribunal to support their rent figures, detailing comparable properties and explaining their relevance. This is a new requirement for many landlords, leading to difficulties in providing adequate evidence.
Why this matters: The changes impact how landlords manage their properties and the potential for tenants to challenge rent increases.
What this means for you: If you are a tenant, you now have the right to challenge a rent increase through the First Tier Tribunal if your landlord uses the statutory rent increase procedure. If you are a landlord, you must be prepared to justify your rent setting with evidence of market rates.