How Tenancies, Rent, and Increases Change After May 2026

What landlords and tenants need to know about the new tenancy structure, rent increase rules, and how to challenge an increase at tribunal

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The Renters' Rights Act 2025 rewrites the fundamental structure of private tenancies in England. Fixed-term contracts are abolished. The way rent increases work changes completely. And tenants gain new rights to challenge increases they believe are above market rate.

Whether you are a landlord planning your next rent review or a tenant facing an increase you think is unfair, this guide covers exactly how the new system works.

How Will Tenancies Change on 1 May 2026?

The End of Fixed-Term Tenancies

From 1 May 2026, it is no longer possible to create a fixed-term assured shorthold tenancy (AST) in England. Every new tenancy will be an assured periodic tenancy (APT) — rolling month to month with no fixed end date.

What this means:

• No more 6-month or 12-month fixed terms
• No break clauses (they are unnecessary when the tenancy is already periodic)
• No renewal fees
• Tenants have security of tenure — they stay until they choose to leave or the landlord obtains a valid possession order

Will My Existing Tenancy Automatically Change?

Yes. On 1 May 2026, all existing fixed-term ASTs automatically convert to assured periodic tenancies. This happens by operation of law — you do not need to sign a new agreement, and your landlord does not need to issue a new contract.

What happens to your existing tenancy agreement?

• The terms of your existing agreement remain in force, except where they conflict with the new law
• Any clause setting a fixed end date ceases to have effect
• Any clause restricting when you can give notice ceases to have effect
• Rent amount and payment day remain the same until changed via Section 13
• Other terms (pet restrictions, decoration rules, etc.) continue to apply unless they conflict with the Act

Key Dates for the Transition

What Changes for Tenants?

You can leave with 2 months' notice. Under the new system, tenants can end their tenancy at any time by giving 2 months' written notice. No need to wait for a break clause, no penalty for leaving before a fixed term ends, and no need to agree with the landlord.

Your security of tenure is stronger. Your landlord can only end your tenancy by obtaining a possession order through the courts, using valid Section 8 grounds. There is no "no-fault" eviction route.

You cannot be locked in. Any clause in your tenancy agreement that restricts your right to give 2 months' notice is void under the new Act.

What Changes for Landlords?

Plan for shorter commitment periods. Without fixed terms, tenants can leave at any time with 2 months' notice. This may increase void periods for some properties — factor this into your financial modelling.

Update your processes. Remove references to fixed terms, break clauses, and renewal fees from your paperwork and communications.

Issue the government information sheet. For existing tenancies, you must provide the government's mandatory information sheet by 31 May 2026. For new tenancies from 1 May 2026, you must provide it at the start of the tenancy. Failure to provide it can restrict your ability to use certain possession grounds.

For a comprehensive overview of all the changes under the new Act, see our Renters' Rights Act 2025 Landlord Guide.

How Will Rent Increases Work Under the New Rules?

The Renters' Rights Act replaces the patchwork of rent increase mechanisms with a single, standardised process.

Section 13: The Only Way to Increase Rent

From 1 May 2026, the only legal mechanism to increase rent on an assured tenancy is a Section 13 notice. Contractual rent review clauses in existing or new tenancy agreements have no effect.

This means:

• No rent increases via a clause in the tenancy agreement
• No rent increases by verbal agreement alone
• No rent increases at "renewal" (renewals no longer exist)
• Every increase must follow the formal Section 13 process

The Section 13 Process: Step by Step

Step 1: Check eligibility

Before proposing an increase, confirm:

• At least 12 months have passed since the tenancy started, OR since the last rent increase took effect
• The proposed increase reflects a market rent for the property in its current condition
• You have not already served a Section 13 notice within the current 12-month period

Step 2: Serve a Section 13 notice

The notice must be in the prescribed form (Form 4) and must state:

• The current rent
• The proposed new rent
• The date the increase takes effect (at least 2 months from the date of service)

Step 3: The tenant decides

The tenant has three options:

1. Accept the increase — the new rent applies from the date stated in the notice
2. Negotiate — the tenant can discuss a different amount with the landlord informally
3. Challenge at the First-tier Tribunal — the tenant can refer the notice to the tribunal before the increase date

Step 4: If challenged, the tribunal determines a fair rent

The tribunal will assess the market rent for the property, disregarding:

• Any improvements made by the tenant
• Any reduction in value caused by the tenant's failure to maintain

Key Rules for Rent Increases

What Does "Market Rent" Mean?

The tribunal assesses market rent based on:

• Comparable rents for similar properties in the same area
• The condition and features of the property (size, location, amenities)
• The terms of the tenancy (e.g., whether the landlord provides furnishings)

Disregarded factors:

• Tenant improvements (the tenant should not be penalised for improving the property)
• Tenant-caused deterioration (the landlord should not benefit from the tenant's neglect)
• The tenant's personal circumstances (ability to pay is not relevant to market rent)

Can I Challenge a Rent Increase My Landlord Has Proposed?

Yes. If you believe a proposed rent increase is above the market rate for your property, you can refer the Section 13 notice to the First-tier Tribunal (Property Chamber) for determination.

How the Tribunal Challenge Process Works

Step 1: Receive the Section 13 notice. Your landlord must serve this in the prescribed form with at least 2 months' notice.

Step 2: Apply to the tribunal. You must apply before the date the increase is due to take effect. The application is made to the First-tier Tribunal (Property Chamber). There is no application fee for rent increase challenges.

Step 3: The tribunal assesses market rent. The tribunal will consider evidence of comparable rents and determine what a fair market rent would be.

Step 4: The tribunal makes its decision.

Under the Renters' Rights Act, the tribunal process has been changed in two important ways:

1. No backdating. Previously, if a tenant challenged an increase but the tribunal found it was fair, the increase was backdated to the original notice date — meaning the tenant owed arrears. Under the new rules, the tribunal's decision takes effect from the date of the decision, not the date of the original notice. This removes a major deterrent that previously discouraged tenants from challenging.

2. The tribunal cannot set rent below the current level. The tribunal determines a fair market rent. If that figure is lower than the proposed increase but higher than the current rent, the tribunal sets the rent at the market level. If the market rent is at or below the current rent, the rent stays the same.

Building Your Case: Evidence for a Tribunal Challenge

If you are a tenant challenging an increase:

• Gather comparable rents — search Rightmove, Zoopla, and OpenRent for similar properties in the same area at current asking rents
• Note the property's condition — if the property has issues (damp, disrepair, outdated fixtures), these reduce its market value
• Document any tenant improvements — if you have made improvements (redecorated, fitted shelves, maintained the garden), these should be disregarded by the tribunal
• Check the increase percentage — increases significantly above inflation or local market trends are more likely to be reduced by the tribunal
• Keep all communication — your landlord's notice, your correspondence, and any negotiation attempts. Timestamped records strengthen your position

If you are a landlord proposing an increase:

• Research comparable rents — gather evidence of what similar properties in the area are currently let for
• Document the property's condition — recent improvements, maintenance history, and current state
• Be realistic — tribunals regularly reduce proposed increases. Proposing a market-rate increase is far safer than overshooting
• Keep records of your Section 13 process — date served, method of service, tenant's response. Togal helps demonstrate compliance by creating a timestamped record of every step in the rent increase process

What If the Tribunal Reduces the Increase?

If the tribunal determines that the market rent is lower than the landlord proposed:

• The rent is set at the level the tribunal determines
• The new rent takes effect from the date of the tribunal's decision
• The landlord cannot serve another Section 13 notice for 12 months from the date the new rent takes effect
• Neither party has to pay costs (each side bears their own costs)

Practical Implications for Landlords

Financial Planning

The combination of periodic tenancies and regulated rent increases requires a different approach to financial planning:

• Build void period contingency — tenants can leave with 2 months' notice at any time
• Research market rents before each increase — an increase that gets challenged and reduced wastes time and creates friction
• Time your increases carefully — you only get one per year, so make it count
• Factor in tribunal risk — if you propose an increase more than 10% above the current rent, the risk of a tribunal challenge is higher

Common Mistakes to Avoid

Increasing rent informally. From 1 May 2026, a verbal agreement or an email saying "rent is going up" is not a valid increase. Only a Section 13 notice in the prescribed form counts.

Increasing too frequently. You can only increase rent once every 12 months. The 12-month clock runs from when the last increase took effect, not when it was proposed.

Serving invalid notice. The Section 13 notice must be in the correct prescribed form, state the correct current rent, and give at least 2 months' notice. Errors in the notice can invalidate it.

Retaliatory increases. Proposing a significant rent increase shortly after a tenant reports a repair or exercises a right (such as challenging a previous increase) can be viewed unfavourably by a tribunal. While the law does not explicitly ban this, patterns of retaliatory behaviour undermine a landlord's credibility.

Practical Implications for Tenants

Your Key Rights

• You can leave at any time with 2 months' written notice
• Rent can only increase once per year via Section 13
• You can challenge any increase at the First-tier Tribunal at no cost
• No backdating — if you challenge and the tribunal agrees with your landlord, you do not owe arrears from the original notice date
• Your landlord cannot evict you for challenging — retaliatory eviction claims are strengthened under the new Act

When to Challenge

Consider challenging a rent increase when:

• The proposed increase is significantly above comparable rents in your area
• The property has outstanding repair issues that reduce its market value
• You have made improvements that the landlord is now trying to benefit from
• The increase is more than 10-15% above your current rent (though there is no fixed threshold)

When Not to Challenge

An increase that reflects genuine market rates is unlikely to be reduced by the tribunal. If comparable properties are letting at or above the proposed rent, challenging may not change the outcome. Research comparable rents before deciding.

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Frequently Asked Questions

Q: Can my landlord increase rent during the first 12 months of my tenancy? A: No. The earliest a Section 13 notice can take effect is 12 months after the tenancy started. With a minimum 2 months' notice period, the landlord would need to serve the notice at least 10 months into the tenancy.

Q: What happens if I don't pay the increased rent and didn't challenge at tribunal? A: If you did not refer the Section 13 notice to the tribunal before the increase date, the new rent applies automatically. Non-payment could lead to rent arrears, which is grounds for possession under Section 8 (Ground 8 for 3+ months' arrears, Ground 10 for any arrears).

Q: My tenancy agreement has a rent review clause. Does it still apply? A: No. From 1 May 2026, the only valid mechanism for increasing rent on an assured tenancy is a Section 13 notice. Contractual rent review clauses have no effect, regardless of what your tenancy agreement says.

Q: Can the tribunal increase my rent above what my landlord proposed? A: No. The tribunal determines a market rent, but the increase cannot exceed the amount the landlord proposed in the Section 13 notice. The tribunal can set the rent at any level between the current rent and the proposed increase.

Q: Does this apply to social housing as well? A: The Section 13 changes primarily affect assured tenancies in the private rented sector. Social housing rent is regulated separately through the Rent Standard set by the Regulator of Social Housing.

Q: What if my landlord tries to increase rent by starting a new tenancy? A: Creating a new tenancy solely to circumvent the 12-month restriction is not possible under the new system. Tenancies are periodic and continuous — the landlord cannot end one and start another without valid Section 8 grounds.

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This guide is for informational purposes and does not constitute legal advice. Some implementation details may change as secondary legislation is finalised. For specific situations, consult a qualified property solicitor or contact your local Citizens Advice.

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Further Reading:

• Renters' Rights Act 2025 Landlord Guide
• Renters' Rights Act Penalties: Fines, Bans, and Rent Repayment Orders
• Section 8 Evidence Guide

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Sources:

• Renters' Rights Act 2025
• Housing Act 1988, Section 13
• GOV.UK Guidance on the Private Rented Sector
• First-tier Tribunal (Property Chamber) — Rent Increases
• GOV.UK How to Rent Guide