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How much can a landlord increase rent by in 2026?

How much can a landlord increase rent by in England? There's no percentage cap, but the tribunal's open-market test sets the real limit. Here's how it works.

Updated 25 October 2026Checked against legislation 25 October 2026England only

Key points

  • The rules set no percentage cap on rent increases for private tenancies in England.
  • If the tenant challenges, the tribunal sets the rent at the open-market level for the property on the same terms, and never above the rent you proposed.
  • The tenant pays the old rent until the tribunal decides, and the increase is never backdated before the date in your notice.
  • Increases must still go through Form 4A: at least 2 months' notice, once a year, starting on the first day of a rent period.

How much can a landlord increase rent by in England? There is no percentage cap. The real limit is the market: if your tenant challenges a Section 13 notice, the tribunal sets the rent at what the property would fetch on the open market on the same terms, and it can never set it higher than the rent you proposed.

Is there a cap on rent increases in England?

The rules we check against set no fixed percentage or cash limit on a rent increase for a private assured tenancy. The rent increase limits are about how and when you increase the rent, not how much:

Limit What it means
The form You must use Form 4A, the Section 13 notice. Rent review clauses have no effect since 1 May 2026
Notice The new rent starts at least two months after you serve the notice
Frequency Once a year: 52 weeks after the tenancy began or the last increase took effect, sometimes 53
Start date The new rent must start on the first day of a rent period
The tenant's challenge The tenant can ask the tribunal to set the rent at the open-market level

These rules apply in England only. Wales (Renting Homes (Wales) Act 2016), Scotland and Northern Ireland have different law.

What is a reasonable rent increase?

A reasonable rent increase is one that takes the rent to, or below, the current market rent for your property. That's the test the tribunal uses if the tenant challenges: the rent you "could reasonably expect if the property were let on the open market on the same terms". The tribunal may also consider the property's condition.

In practice that means three things shape a reasonable figure:

  • Comparable lets. What similar homes nearby are letting for now.
  • Condition. A property needing repairs won't command the same rent as a well-kept one.
  • Terms. The same terms as your tenancy, for example whether it's furnished and whether any bills are included in the rent.

Your own costs, such as a higher mortgage payment or insurance premium, aren't part of the test. They may be why you want an increase, but they don't decide what the tribunal will allow. Our guide to market rent evidence shows how to build the comparison.

Section 13 rent increase (Form 4A). Propose a new rent the lawful way: we check the once-a-year rule, calculate the earliest start date and fill in Form 4A for you.

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The maximum rent increase the tribunal will allow

If the tenant applies to the First-tier Tribunal, the outcome is the lower of two figures: your proposed rent and the open-market rent. The tribunal can never exceed your proposal (Housing Act 1988 s.14ZB(5)).

Current rent You propose Tribunal finds market rent of New rent
£1,000 £1,150 £1,100 £1,100
£1,000 £1,150 £1,200 £1,150
£1,000 £1,050 £1,100 £1,050

So the maximum rent increase you can achieve is the one you propose, and only if the market supports it. Proposing less than the market rent can't be corrected upwards by the tribunal.

Why asking for too much costs you

Over-pricing an increase has costs that a well-evidenced figure avoids.

  • A challenge is more likely. A figure well above comparable lets gives the tenant a reason to apply on form MR1.
  • You wait for the money. The tenant does "not have to pay the new rent amount until the tribunal has made its decision".
  • No backdating. The increase never starts before the date in your notice. If the tribunal decides after that date, the new rent starts at the beginning of the first rent period on or after its decision.
  • Hardship deferral. If the usual start would cause the tenant undue hardship, the tribunal can move it to a later date, within two months beginning with the date of its decision.
  • The result is capped anyway. Even after a hearing, the most you get is the market rent.

A figure backed by evidence gives the tenant less reason to challenge. Read how a tenant challenges a rent increase for the full process.

Rent limits at the start of a new tenancy

The Section 13 rules cover increases during a tenancy. When you let to a new tenant, different rules shape the starting rent:

  • Rental bidding is banned. Every written advert or offer must state one specific rent, and you can't ask for or accept offers above it. See the rental bidding ban.
  • Rent in advance is limited for tenancies entered into from 1 May 2026. Before the tenancy is agreed you can't ask for or accept any rent, although a holding deposit of up to one week's rent is still allowed. See rent in advance rules.
  • The tenant can challenge the starting rent. Within 6 months of the tenancy starting, the tenant can ask the tribunal to review the current rent. The tribunal can only reduce it, to the market rent.

How much can a landlord increase rent without inviting a challenge?

Use this checklist before you fill in Form 4A:

  1. Find at least a handful of comparable lets: same area, similar size and type, similar condition.
  2. Adjust for differences: furnishing, parking, outside space, bills included.
  3. Be honest about condition. If there's outstanding disrepair, fix it first or price it in.
  4. Write down your reasoning and keep copies of the adverts or valuations you relied on.
  5. Check the date rules with the Section 13 date calculator.
  6. Make sure you're allowed to increase now: read how often rent can be increased.

What to do next

  • Prepare Form 4A with the start date worked out for you, free with a ValidNotice account, from the Section 13 notice page.
  • Send a short rent increase letter with the form to explain your figure.

Section 13 notice

Section 13 rent increase (Form 4A)

Propose a new rent the lawful way: we check the once-a-year rule, calculate the earliest start date and fill in Form 4A for you.

  • ✓ Updated for the Renters' Rights Act 2025
  • ✓ Dates and notice periods calculated
  • ✓ Plain-English checks before you serve
  • ✓ Download as PDF, ready to sign

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Frequently asked questions

Can I raise the rent to cover a higher mortgage payment?

You can propose any figure, but your costs are not the test if the tenant challenges. The tribunal looks at what the property would let for on the open market on the same terms, so a rise that goes beyond that will be cut back to the market rent.

Does the tenant have to agree to the new rent?

No. If your Form 4A is valid and the tribunal hasn't received an application from the tenant by the start date, the new rent applies from that date. The tenant's agreement on its own, without a notice, can't raise the rent.

Can I set a higher rent when I re-let to a new tenant?

Yes, you set the starting rent for a new tenancy. Written adverts must state one fixed rent, you can't accept offers above it, and the new tenant can ask the tribunal to review the starting rent within 6 months of the tenancy beginning.

What if my tenant says they can't afford the increase?

Talk to them first. After serving the notice you can agree a lower rent in writing, or no increase. If the tenant goes to tribunal, it can delay the start date for undue hardship, but only to a date within two months beginning with its decision.

Sources

This guide explains the law in England as it stood on 25 October 2026. It is general information, not legal advice on your situation. Wales, Scotland and Northern Ireland have different rules. See our editorial policy for how we research and check our guides.