Amongst the many significant changes implemented to the rental property sector by the Renters’ Rights Act 2025 (‘the Act’) are those relating to rent.
Effective from 1st May 2026, the rent applicable under any assured tenancy (other than a relevant low-cost tenancy) will only be capable of being increased by statutory procedure, and cannot be increased more regularly than at 1 yearly intervals.
For landlords considering a rent increase under an assured tenancy, they must now give a minimum of 2 months’ notice of a proposed rent increase (previously 1 month under the Housing Act 1988).
Crucially, any proposed increase to the rent should represent the property’s open market rental value. Otherwise, or if the tenant deems that the proposed increase does not represent such value, the tenant can apply (free of charge) to the First Tier Tribunal for the property’s open market rental value to be determined. Once the Tribunal has determined the rent payable, the new rent amount payable will either be;
- The open market rent (i.e. the amount of rent determined by the Tribunal on the tenant’s application) if lower than the tenancy rent, or
- If not, then the tenancy rent (i.e. the rent payable under the tenancy immediately before the determination is made by the Tribunal (excluding the appropriate amount in respect of any rates)).
There have even been suggestions that AI technology will be utilised to determine open market rent, to avoid the Tribunal becoming overwhelmed with rent valuation applications, following the implementation of this part of the Act.
Another important point to note is that any assured tenancy agreements that contain a contractual rent review provision will not only be void, but could give rise to a penalty against the landlord that seeks to impose it.
The new rent control provisions are just some of a number of new laws implemented by the Act that seek to broaden the rights available to tenants within the rented sector.
At Hewitts we have a team of specialists able to deal with matters on behalf of both landlords and tenants, from both a transactional and contentious perspective. If you require any further information on the above or assistance with any landlord and tenant related matter, then please contact a member of our team – https://hewitts.co.uk/our-team/?group=8
