Introduction: Major Rental Reform Is Now Law
In October 2025, Parliament passed the Renters’ Rights Act 2025, bringing in the most significant overhaul of private renting law in decades. The Act received Royal Assent on 27 October 2025, meaning it is now law in England.
However, not all changes apply immediately. The government has confirmed that the key reforms affecting rent setting, rent increases, and tenancy structures will come into force on 1 May 2026.
If you’re a landlord, it’s natural to feel uncertain about what this means in practice. With the right information and the right letting agent supporting you these changes can be managed confidently and compliantly. This guide explains what has changed, what hasn’t, and how it affects you.
No More Rental Bidding Wars: Advertised Rent Is the Maximum
From 1 May 2026, landlords and letting agents will be legally prohibited from accepting or encouraging offers above the advertised rent.
This means:
● The rent advertised is the maximum rent you can lawfully accept.
● Even if multiple tenants are interested and offer more, you must refuse.
● Agents cannot suggest tenants increase their offer to secure the property.
What this means for landlords
You’ll need to set your asking rent carefully from the outset. Strategies such as deliberately under pricing to generate demand and then selecting the highest bidder will no longer be lawful.
The benefit is greater transparency, fewer disputes, and a clearer process for both landlords and tenants. By pricing the property correctly at market value from the start, you reduce voids and attract suitable tenants without risking non-compliance.
A knowledgeable letting agent can help assess comparable local rentals to ensure your advertised price is competitive while still reflecting the property’s true market value.
Rent Increases: Limited to Once Per Year
Under the new rules effective from 1 May 2026, rent increases during a tenancy will be strictly controlled:
● Rent may only be increased once in any 12 month period
● All rent increases must be served using a statutory Section 13 notice
● A minimum of two months’ notice is required
There is no fixed percentage cap on rent increases. Instead, the key legal test is whether the proposed rent reflects the open market rent for that property at that time.
What does this means in practice
If market rents in your area have risen, you are entitled to increase the rent accordingly provided the new figure aligns with what similar properties are achieving locally. However, excessive increases that sit well above market value risk being challenged.
The intention of the law is not to freeze rents, but to prevent sudden or unjustified increases that place tenants under financial pressure.
Tenants’ Right to Challenge Rent Increases
If a tenant believes a proposed rent increase is above market value, they have the right to refer it to the First-tier Tribunal (Property Chamber).
If a case is referred:
● The tribunal will assess local market evidence for similar properties
● It can confirm the proposed rent or set a lower rent
● It cannot increase the rent above what the landlord proposed
● The tribunal may prevent backdating and, in cases of hardship, delay the increase
This system encourages landlords to propose fair, evidence-based increases from the outset.
In reality, tribunal cases are expected to be rare where landlords price sensibly and follow market trends. Most disputes arise only where increases significantly exceed local norms.
What These Changes Mean for Landlords
1. Get the Advertised Rent Right First Time
Since you cannot accept more than the advertised rent, accuracy matters more than ever. Setting the correct price upfront avoids lost income and ensures compliance.
2. Plan Rent Reviews Annually
With only one increase allowed per year, landlords should plan increases thoughtfully, factoring in mortgage costs, inflation, and maintenance over a 12-month period. Smaller, regular increases are often more sustainable than infrequent large jumps.
3. Stay Aligned with Market Rates
The absence of a percentage cap does not mean unlimited increases. Market rent is effectively the ceiling. Keeping increases proportionate reduces the risk of challenges and improves tenant retention.
4. Keep Clear Evidence
Maintaining records of comparable local rents, property improvements, and market conditions helps support your position if a tenant queries an increase. Good documentation protects you and demonstrates professionalism.
How Tri Property Fusion Can Support You
Accurate Rent Pricing
We help you set the correct advertised rent from day one, ensuring compliance with the new rules while maximising your return.
Managing Rent Increases
We handle the timing, preparation, and service of Section 13 notices, ensuring all increases are lawful, correctly served, and properly communicated.
Tribunal Support (If needed)
If a rent increase is challenged, we can provide market comparisons and guidance to support your case and help you navigate the process with confidence.
Ongoing Legislative Guidance
We stay on top of all regulatory changes affecting landlords and keep you informed so you’re never caught out by new requirements.
Conclusion: A New Framework, not a Barrier
The Renters’ Rights Act 2025 introduces a more structured and transparent rental system. For professional landlords, the fundamentals remain the same: set fair rents, review them sensibly, and treat tenants transparently.
While bidding wars and frequent rent increases will no longer be permitted, the new framework offers clarity and predictability benefiting landlords who already operate responsibly.
With Tri Property Fusion by your side, you can adapt smoothly, remain compliant, and continue to run a successful rental portfolio under the new rules.
If you’d like advice on how these changes affect your specific properties, get in touch and we’re here to help.
Contact Mesh on 07776117358
