The Renters’ Rights Bill is poised to reshape how rent increases work in the private rented sector. For landlords currently charging well below fair market rents, whether out of loyalty, inertia, or fear of conflict the proposed changes create both a wake-up call and a narrow window of opportunity.
Under the new rules, landlords will only be able to raise rent once per year, using a Section 13 notice, and only to a level that reflects “market rent”. Crucially, tenants will have the right to challenge that increase at the First-Tier Tribunal (FTT). And while the FTT won’t backdate rent increases or claw back undercharging, it can and will block or reduce increases it deems excessive, even if the rent was previously low.
This puts landlords in a bind: if you’ve let your rent drift far below local comparables, correcting it may be problematic under the RRB. Once the Bill passes, any large jump may trigger a tenant dispute and there’s no guarantee the tribunal will side with you, even if your costs have soared.
Maintenance costs, insurance, tax, compliance, none of these are going down. So, if your rental income doesn’t reflect your outgoings, the maths only gets worse from here. This doesn’t mean hiking rents unfairly, but it does mean landlords need to be proactive, realistic, and informed. A fair rent should reflect the condition and location of the property, local demand, and the cost of maintaining standards.
The bill aims to create stability for tenants, but landlords must ensure they’re not left financially exposed. Now is the time to review rent levels, take advice where needed, and make any reasonable adjustments before things become complicated.
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Date Published: 20/06/2025