The Renters' Rights Act and what it means for rent increases (16 February 2026)

The Renters’ Rights Act is designed to change the way the private rented sector operates. Much of the public discussion has focused on the proposed abolition of “no fault” evictions under section 21 of the Housing Act 1988. However, for many tenants, the most immediate concern is not eviction itself, but whether they can continue to afford the rent.

Under the new framework, landlords will only be able to increase the rent once in any 12 month period. Importantly, they must use the formal legal process set out in section 13 of the Housing Act 1988. This means that landlords will no longer be able to rely on clauses in tenancy agreements that allow for automatic rent increases or built in annual uplifts.

Landlords must give at least two months’ notice before any proposed increase can take effect. That notice must follow a prescribed form. If it does not, the increase may be invalid.

Tenants will continue to have the right to challenge a proposed rent increase by applying to the First-tier Tribunal (Property Chamber). The tribunal’s role is to decide what the “market rent” is for the property, in other words, what similar properties in the same area are being let for on the open market. The Act does not introduce rent caps or rent controls. The tribunal will not assess whether the rent is affordable for the tenant; it will focus on what the market would pay.

However, the Act does introduce two important changes which strengthen tenants’ position:

1. First, the tribunal will no longer be able to set a rent higher than the amount proposed by the landlord. Under the current system, tenants sometimes hesitate to challenge increases because the tribunal can determine a higher figure. That risk will be removed.
2. Secondly, if a tenant challenges the increase, the new rent will not take effect until the tribunal has made its decision. This prevents the increase from being backdated and means tenants will not face an immediate rise while waiting for a hearing.

These reforms improve fairness and provide greater clarity. They may also lead to more tenants exercising their right to challenge increases. Whether the tribunal system has sufficient resources to deal with a rise in applications without delay remains uncertain.

What the Act does not do, however, is limit how high rents can rise. There is no cap on rent levels. In areas where market rents have increased significantly, particularly in London and other high demand cities, a tribunal applying the market test may still approve a substantial increase.

This is where the practical difficulty arises. A rent increase can be entirely lawful and properly served, yet still make the tenancy unaffordable. For many households, particularly those on fixed or modest incomes, a significant rent rise can have the same effect as an eviction. Security of tenure offers limited protection if the rent itself becomes unsustainable.

A practitioner’s perspective

As a Housing Litigation Solicitor acting for both tenants and landlords in contentious housing matters, I welcome the greater procedural clarity introduced by the Act. For tenants, the reforms reduce the immediate risk associated with challenging rent increases and provide a more transparent process. For landlords, the Act creates a structured and predictable mechanism for increasing rent, which may assist with long-term portfolio planning and compliance.

However, the fundamental pressure point in the private rented sector remains affordability. In high demand areas, particularly London, market rents have risen at a pace that significantly outstrips wage growth and housing benefit levels. While the Act regulates the process for increasing rent, it does not regulate the market itself. Landlords will understandably continue to seek returns that reflect market conditions and rising costs, including mortgage interest, insurance, compliance and taxation.

The difficulty is that a rent increase may be entirely lawful and commercially justified, yet still render a tenancy unsustainable for the occupier. From a landlord’s perspective, frequent turnover also carries cost and risk. From a tenant’s perspective, instability undermines security of tenure in real terms.

The long term stability of the sector will therefore depend not only on procedural reform, but on whether policy makers address the structural imbalance between housing supply, demand and affordability. Without that, rent increases are likely to remain the principal pressure point in the private rented market – Manjinder Kaur Atwal, Director Solicitor.

About Manjinder Kaur Atwal, Director and Solicitor

Manjinder is a Director of Housing/Property Litigation at Duncan Lewis Solicitors with over 15 years' experience in housing and property law. She has built a reputation for taking on challenging cases and securing excellent outcomes for clients across a wide range of matters, from possession claims and housing disrepair to judicial reviews and boundary disputes.

About Amandeep Bains, Solicitor

Amandeep is a Housing Solicitor at Duncan Lewis, handling a comprehensive range of housing law matters including homelessness, housing disrepair, possession proceedings, and unlawful evictions. He regularly conducts his own advocacy as a Court Duty advocate, representing tenants facing complex possession claims at County Court.

About Duncan Lewis Solicitors

Duncan Lewis Solicitors is a leading law firm with a nationally recognised Housing and Property Litigation department. The firm is dedicated to providing expert legal representation to tenants and clients facing housing disputes, homelessness, disrepair claims, and possession proceedings. With a commitment to social justice and extensive experience in both straightforward and complex cases, Duncan Lewis Solicitors has earned a strong reputation for achieving exceptional results for clients across the UK.