From 1 May 2026, the rules on rent increases in England are getting a big update under the Renters’ Rights Act 2025. Think of it as the system pressing “refresh” on how rents are set and changed.

At Tu Nguyen Management, we work with both landlords and tenants, so this guide is written for everyone, in plain English. However, the caveat is that lots more details are yet to emerge between now and the 1st May, so do not treat this as advice and do your own due diligence.

Important: This guide explains the new rules that apply from 1 May 2026 in England. Before that date, the current rent increase rules still apply. (GOV.UK)

Read Part 1, Part 2, Part 3 and Part 4 of our Renters' Right Act series before you continue for a better understanding.  

1. What’s actually changing?

From 1 May 2026:

  • All existing assured shorthold tenancies (ASTs) convert into new open-ended “assured periodic tenancies”. This means no more fixed terms for standard private lets.
  • The maximum rent period is one month, so no more six-month blocks of rent in advance in standard tenancies.
  • Rent can only be increased once every 12 months and only by following a formal legal process.
  • Landlords must use a prescribed Section 13 notice (new Form 4A) and give at least 2 months’ written notice of any proposed increase.
  • Tenants can challenge rent increases at the First-tier Tribunal if they believe the rent is above the open market level.
  • Rent review clauses in tenancy agreements stop working so rent can’t just go up automatically because a contract says so.
  • The Act also bans rent bidding so landlords and agents must not encourage, invite, or accept offers above the advertised rent.

In short: surprise rent hikes are out; clear, written, rules-based increases are in.

2. How the new rent increase process works (for everyone)

From 1 May 2026, this is the basic process for increasing rent under the Renters’ Rights Act:

  • One increase per year, maximum
  • A landlord can propose a rent increase no more than once every 12 months for a tenancy.
  • Formal written notice (Section 13 – Form 4A)
  • The landlord (or agent) must use an official Section 13 notice (Form 4A).
  • This sets out the current rent, the proposed new rent, and the date it would start.
  • At least 2 months’ notice
  • The notice must be served so that the tenant receives a minimum of 2 months’ notice before the new rent day.
  • The rent day rule
  • The increase can only start on the first day of a rent period. For example, if you always pay on the 5th, the new rent must also start on a 5th.
  • Right to challenge
  • If a tenant thinks the new rent is above the local market level, they can ask the First-tier Tribunal to decide what a fair market rent should be.
  • Market rent, not “whatever we fancy”
  • Whether you’re a tenant or a landlord, it all comes back to “open-market rent”. Broadly, this means what a similar property in the area would reasonably let for if advertised today.

If the correct notice isn’t used, or the dates are wrong, the increase may be invalid. This can be frustrating for landlords and confusing for tenants.

3. What this means for tenants

If you’re renting a home from 1 May 2026, here’s what you can expect.

More predictability

  • Your rent can’t be increased every few months (not that it has ever happened for properties we manage, it just isn't right or fair!). Rent can only be increased once in any 12-month period.
  • You must get at least 2 months’ written notice of any proposed increase.

That means fewer surprises and more time to plan your budget.

Clear, written communication

  • Any increase must be set out using a formal Section 13 notice (Form 4A).
  • You’ll see:
  • your current rent
  • the proposed new rent
  • the date it would start
  • We’ll explain what it means in plain English and answer questions if you’re unsure.

Your right to challenge

If you think the new rent is above the going rate, you can:

  • Challenge it at the First-tier Tribunal, an independent body that looks at rent levels and similar local properties.
  • The Tribunal will look at evidence of local market rents and set a figure it considers fair.

Challenging the initial rent

Under the new rules, tenants will also be able to challenge the starting rent for a new tenancy within the first six months, if they believe it is above market level.

So, from day one, the law expects rents to be justifiable.

If you’re worried about affordability

If a proposed increase would be difficult for you:

  • Talk to us early. We’d much rather discuss options than see you stressed or fall into arrears.
  • We may be able to explore:
  • a smaller increase
  • timing that works better with your income cycles
  • signposting to independent advice if needed

Our goal is a home that’s safe, well-managed and sustainably affordable; not a revolving door of unhappy tenancies.

4. What this means for landlords

For landlords, the new rules are a shift in process, not a ban on rent increases.

You can still increase rent, but you must:

  • Do so no more than once every 12 months.
  • Use the prescribed Section 13 (Form 4A) notice.
  • Give at least 2 months’ notice.
  • Ensure the proposed rent is in line with market levels and can be evidenced if challenged.

Handled well, this can actually reduce disputes and give you a more stable, predictable income.

We’ll be supporting landlords with:

  • A clear rent review timetable for each property which is simply be the 12 month anniversary of each tenancy.
  • Market evidence (comparables, demand data) to support fair increases.
  • Properly drafted and served notices so they’re legally robust and easy for tenants to understand.

5. Banned practices

From 1 May 2026, these practices will be banned, although they are not practices the agency has ever adopted:

Rent bidding wars

  • Landlords and agents must not ask for, invite, or accept offers above the advertised rent.
  • The idea is to stop silent auctions that push rents up for the keenest (or most desperate) tenants.

At Tu Nguyen Management, we:

  • Advertise at a realistic, evidence-based rent, and
  • Treat all applicants fairly and consistently at that advertised level.

Hidden or automatic rent hikes in the contract

  • Rent review clauses that automatically raise rent (e.g. “3% every year”) will no longer have legal effect under the new system.
  • Rent must go through the formal notice process each time.

6. How Tu Nguyen Management will handle rent increases

Because we manage homes for both landlords and tenants, we’re designing our approach to be:

  • Legally compliant
  • Fair and evidence-based
  • Easy to understand

Here’s what that looks like in practice. For every tenancy we manage, we will:

Use evidence, not guesswork

  • Check current local rents for similar properties.
  • Factor in property condition, improvements and running costs.

Communicate early and clearly

  • Give tenants advance notice that a review is coming (before any formal notice).
  • Explain how we’ve arrived at any proposed figure.

Use the correct legal process

  • Prepare and serve Section 13 (Form 4A) notices correctly and on time.
  • Keep clear records so both parties know exactly what’s been done and when.

Encourage two-way conversation

  • Tenants can talk to us if they’re worried about affordability or don’t understand something.
  • Follow a fair and robust rent arrears policy.
  • Landlords can talk to us about long-term strategy, yields and risk.

Discourage extremes

  • We’ll always advise against increases that are unrealistic, unfair, or likely to be challenged.

If we get this right, tenants feel secure and respected, and landlords see stable, sustainable returns.

7. Quick Q&A

Q: Can my landlord just tell me informally that the rent is going up? A: After 1 May 2026, no. A valid increase must use the correct Section 13 notice and give at least 2 months’ notice. Informal chats are useful, but they don’t change the legal rent on their own.

Q: Can my rent go up more than once a year? A: No – under the new rules, rent can only be increased once in any 12-month period for a tenancy.

Q: What if I think the proposed rent is too high? A: You can:

  • Raise it with us first, sometimes misunderstandings or errors can be corrected informally.
  • If you still think it’s above market level, you can challenge it at the First-tier Tribunal, which will look at local evidence and set a fair market rent.

Q: I’m a landlord, does this mean I can never get to market rent? A: You still can, but increases need to be:

  • Gradual and evidence-based, and
  • Done through the formal process, once a year at most.

In many cases, smaller but regular increases are better for everyone than big jumps that cause stress or disputes.

8. Our commitment to you

Whether you’re a tenant or a landlord, Tu Nguyen Management is committed to:

  • Transparency – no surprises, clear explanations.
  • Fairness – rent levels grounded in real local market data.
  • Professionalism – we follow the law, the guidance, and best practice.

If you’re unsure how the new rules affect you, or you’d like us to review your tenancy or portfolio under the upcoming changes, please get in touch.

No jargon, no drama. Just a calm, structured approach to rent increases in the new system.

TNM - "Always doing the right thing."

Disclaimer: This newsletter is for general information only and does not constitute legal, financial or other professional advice. No representation or warranty is given as to its accuracy or completeness and, to the fullest extent permitted by law, Tu Nguyen Management Limited accepts no liability for any loss arising from reliance on it, including any errors or omissions.