Section 13 Rent Increase: Complete Guide

Why Section 13 Matters More Than Ever

Under the Renters' Rights Act 2025, the Section 13 procedure becomes the only lawful method for increasing rent on most residential tenancies. Previously, landlords could include rent review clauses in tenancy agreements that allowed for increases at specified intervals or by specified formulas. The Renters' Rights Act 2025 removes the ability to use contractual rent review clauses for assured tenancies, making the statutory Section 13 process the sole permitted route.

This is a fundamental change. Landlords who previously relied on rent review clauses written into their tenancy agreements must now follow the formal Section 13 procedure for every rent increase, without exception.

What Is a Section 13 Rent Increase?

Section 13 of the Housing Act 1988 provides a statutory mechanism for landlords to propose a rent increase for periodic assured tenancies and periodic assured shorthold tenancies. Under the Renters' Rights Act 2025, with the abolition of fixed-term tenancies for new lettings, all tenancies will effectively become periodic, making Section 13 the universal rent increase process.

The process involves the landlord serving a formal notice on the tenant proposing a new rent, which the tenant can either accept or challenge at the First-tier Tribunal (Property Chamber).

The Section 13 Procedure Step by Step

Step 1: Check Eligibility

Before serving a Section 13 notice, confirm that:

• At least 12 months have passed since the tenancy started, or since the last rent increase took effect (whichever is later)
• The tenancy is a periodic tenancy (under the Renters' Rights Act 2025, all new tenancies are periodic)
• You are proposing a rent that reflects the open market rate for the property

Step 2: Determine the Market Rate

The proposed new rent must be the amount that the property could reasonably be expected to achieve on the open market. This is not based on what you would like to charge or what you need to cover your costs. It is an objective assessment of what a willing tenant would pay for the property in its current condition, in the current market, with its current features and location.

Research the market rate by:

• Checking current rental listings for comparable properties in the same area
• Reviewing recent lettings data from property portals and local agents
• Considering the property's specific features, condition, size, and location
• Noting any improvements you have made that add value (but not improvements paid for by the tenant)

Step 3: Complete Form 4

The Section 13 notice must be served using the prescribed Form 4 (for tenancies with a rental period of one month or more) or Form 4A (for tenancies with a rental period of less than one month). Using the wrong form or an outdated version will invalidate the notice.

Form 4 requires:

• The landlord's name and address
• The tenant's name and the address of the property
• The current rent amount
• The proposed new rent amount
• The date from which the new rent will take effect
• Information about the tenant's right to refer the notice to the First-tier Tribunal

Step 4: Serve the Notice

The notice must give the tenant a minimum of 2 months' notice before the new rent takes effect (for monthly or longer tenancies). The effective date must be the first day of a new period of the tenancy.

Example: If rent is paid on the 1st of each month and you serve the notice on 15 March, the earliest the new rent can take effect is 1 June.

Serve the notice using a method that provides proof of delivery. As with all formal notices, being unable to prove when the notice was served can be fatal to the process. Using Togal to serve the notice digitally creates an immutable, timestamped record of service that stands up to scrutiny.

Step 5: Wait for the Tenant's Response

After receiving the notice, the tenant has three options:

1. Accept the new rent and pay it from the effective date
2. Negotiate a different amount directly with the landlord
3. Refer the notice to the First-tier Tribunal for determination

The tenant must refer the notice to the Tribunal before the effective date of the proposed increase. If they do not refer it and do not pay the new rent, the landlord can pursue the rent arrears.

The Once-Per-12-Months Rule

Under the Renters' Rights Act 2025, rent can only be increased once in any 12-month period. This applies regardless of whether:

• The tenant agrees to a lower increase after negotiation
• The Tribunal sets a different figure
• The landlord withdraws the notice and wants to try again

The 12-month clock runs from the date the last increase took effect, not the date the notice was served. If a rent increase took effect on 1 June 2025, the next increase cannot take effect until 1 June 2026 at the earliest.

This makes it important to get the proposed figure right. An undervalued proposal means you are locked in for another 12 months. An overvalued proposal risks a Tribunal referral that could result in a figure lower than what you proposed.

Market Rate Requirement

What "Market Rate" Means

The rent proposed in a Section 13 notice must reflect what a hypothetical willing tenant would pay for the property on the open market. The Tribunal, if the notice is referred, will assess this based on:

• Comparable rental evidence for similar properties in the same area
• The condition, size, and features of the property
• The location and access to transport, schools, and amenities
• The terms of the tenancy

The Tribunal will not consider:

• Any increase in value attributable to improvements made by the tenant
• Any decrease in value caused by the tenant's failure to maintain the property
• The landlord's costs, mortgage payments, or financial circumstances

Building Your Market Evidence

When preparing a Section 13 notice, assemble market evidence to support the proposed rent:

• Search property portals (Rightmove, Zoopla, OpenRent) for current listings of comparable properties within a reasonable radius
• Record the listing details, including address, rent, property features, and date listed
• Note properties that have recently let (not just those currently available), as these show actual achieved rents rather than asking prices
• Contact local letting agents for their assessment of the current market rent for your property
• Consider instructing a formal market rent valuation from a qualified surveyor (RICS valuation) if the rent is substantial or you anticipate a Tribunal challenge
• Document the condition of your property, including any recent improvements

Keep all this evidence. If the tenant refers the notice to the Tribunal, you will need to present it.

The First-Tier Tribunal Process

How the Referral Works

If the tenant refers the Section 13 notice to the First-tier Tribunal (Property Chamber), the Tribunal will determine the rent for the property. The process typically works as follows:

1. The tenant submits an application to the Tribunal before the effective date of the proposed increase
2. The Tribunal notifies both parties and requests written submissions
3. Both landlord and tenant submit evidence of comparable rents and any other relevant information
4. The Tribunal may conduct a site inspection of the property
5. A hearing may be held (though many cases are determined on the papers without a hearing)
6. The Tribunal issues its determination, setting the rent from the effective date specified in the original notice

What the Tribunal Can Decide

The Tribunal is not limited to choosing between the current rent and the proposed rent. It can set the rent at any figure it considers to be the open market rate, which could be:

• The amount proposed by the landlord
• An amount lower than the landlord proposed
• An amount higher than the current rent but lower than proposed
• In theory, an amount higher than the landlord proposed (though this is rare)

Under the Renters' Rights Act 2025, the Tribunal cannot set the rent below the current amount. This is a change from the previous position and was introduced to prevent the Tribunal referral process from being used by tenants as a tool to reduce their rent.

Important Change: No Backdating

Under the Renters' Rights Act 2025, the Tribunal can decide that the new rent takes effect from the date of its determination rather than the date originally specified in the Section 13 notice. This means that if the Tribunal process takes several months, the landlord may not receive the increased rent for the period between the proposed effective date and the Tribunal's decision.

This provision was introduced to protect tenants from facing large backdated lump sums, but landlords should be aware of the potential delay in receiving the full increased rent.

Preparing for a Tribunal Challenge

Evidence Preparation Checklist

• Comparable rental evidence: at least 5-10 similar properties, ideally including both current listings and recently achieved rents
• Property details: floor area, number of bedrooms, bathrooms, reception rooms, outdoor space, parking
• Condition report: current condition of the property, including any recent improvements made by the landlord
• Photographs of the property (interior and exterior)
• Location details: proximity to transport links, schools, shops, and amenities
• Any professional valuation you have obtained
• A clear written statement explaining why the proposed rent represents the market rate

Common Mistakes in Tribunal Cases

1. Insufficient comparable evidence. Relying on one or two comparables is not enough. Provide a range of evidence from multiple sources.

2. Comparing unlike properties. A luxury flat is not comparable to a standard terrace house. Ensure your comparables match your property in type, size, condition, and location.

3. Ignoring the property's condition. If the property has not been well maintained, the Tribunal will take this into account. A property in poor condition will not command the same rent as one in excellent condition.

4. Failing to respond to the tenant's evidence. If the tenant submits comparable evidence showing lower rents, you need to explain why those comparables are not appropriate or why your property commands a higher rent.

Timing Considerations

When to Serve the Notice

Consider the following timing factors:

• Market conditions: Serve the notice when the market supports the increase. Serving during a seasonal dip in rental demand may weaken your evidence.
• Relationship with tenant: Consider how the increase will affect the tenancy. A significant increase may prompt the tenant to leave, creating a void period. Sometimes a moderate, well-evidenced increase that the tenant accepts is better than an aggressive increase that triggers a Tribunal referral or a vacancy.
• The 12-month lock-in: Once an increase takes effect, you cannot propose another for 12 months. Time your increases to align with market peaks if possible.
• Tribunal timelines: If you anticipate a Tribunal referral, factor in the processing time (typically 2-4 months) and the potential for the effective date to be delayed.

Communication Is Key

While the Section 13 process is a formal legal procedure, it does not have to be adversarial. Many landlords find that discussing the proposed increase with the tenant before serving the formal notice leads to better outcomes. Explaining the reasoning, showing the market evidence, and being open to discussion can result in the tenant accepting the increase without a Tribunal referral.

Document these conversations. If you discuss the increase with the tenant by phone, follow up with a written summary. Using Togal for these communications ensures the entire conversation history is preserved with timestamps, which can be invaluable if the matter later goes to the Tribunal.

Section 13 and Other Landlord Obligations

A rent increase does not exist in isolation. Tenants who feel they are being asked to pay more for a property that is not well maintained will be more likely to challenge the increase or raise complaints.

Before proposing a rent increase, ensure that:

• All compliance obligations are met (gas safety, EICR, EPC)
• Any outstanding repair requests have been addressed (Awaab's Law deadlines)
• The property is in a condition that supports the proposed market rent
• Deposit protection is in order

Summary

The Section 13 rent increase process is now the only lawful way to raise the rent on most residential tenancies in England. Landlords must serve Form 4 with at least 2 months' notice, propose a genuine market rent, and accept that tenants have the right to challenge the increase at the First-tier Tribunal. Increases can only happen once every 12 months. Building robust market evidence, communicating openly with tenants, and maintaining compliant, well-maintained properties are the foundations of a successful rent increase strategy.