Can I Increase the Rent on My Property in the East Midlands?

Landlords face increasing costs associated with managing rental properties, including tax rises, increases in mortgage interest rates and escalating costs for ongoing maintenance and repairs. To help to stay profitable, landlords may introduce rent increases but there are rules to follow to help ensure that increases are applied fairly.

The Renters’ Rights Act brings stricter rules around rent pricing and how often increases will be allowed. If you are a private landlord in the East Midlands, read on to find out the rules around increasing rent in areas including Oakham, Oundle and Northamptonshire.

What is the most a landlord can raise rent?

There is no specified maximum percentage for raising rent in England, but any increases must be “fair and realistic”. This means that rent increases should be in line with the local rental market.

When the new rules for rent increases come into force from 1 May 2026, tenants will be able to easily challenge what they believe to be unfair rent increases through a First-tier Tribunal, and any increase (or potentially a decrease or no change) will be determined by the Tribunal.

Therefore, it will be increasingly important that landlords are able to justify any rent increases through data collected on average rents for similar properties in the local area.

When can you increase the rent legally?

Prior to the introduction Renters’ Rights Act changes on 1 May 2026, how often a landlord can increase rent depends on the type of tenancy agreement. Generally, with a periodic tenancy rolling weekly or monthly, increases will be allowed up to once per year. The tenants must agree to the increase, with both parties signing a written agreement.

On fixed term contract tenancies, if there is a rent review clause within the tenancy agreement, landlords can increase the rent according to the terms written in the tenancy agreement. If there is no rent review clause, landlords have to wait until the fixed term ends to introduce a rent increase by providing a new fixed term tenancy agreement.

However, from 1 May 2026, fixed term tenancies will be abolished, so the rent increase rules will change. We cover this in more detail further on.

What is the rent increase process?

To legally propose a rent increase in the absence of a rent review clause, landlords should complete a Section 13 notice (Form 4) which is the formal process for proposing rent increases.

This is available on the gov.uk website and landlords complete the required details such as:

• The proposed new rent amount and current rent amount
• Commencement date of the new rent amount
• Property address
• Name of tenant(s)
• Landlord details

At least one month’s notice is required for proposed rent increases. Once the form has been completed, the form should be sent to the tenant. If the tenants agree to the increase, they arrange for the payment amount to be updated on their bank payment method.

How do you decide how much to raise the rent?

When deciding how much to increase rent by, landlords should research the current rent market rates. Alternatively, if you use a letting agent, they should be able to provide you with a fair and realistic rent amount based on their local market knowledge.

Landlords can also refer to CPI/CPIH to align rent increases to cover inflation. You may also want to consider whether your priority is to keep reliable tenants who look after your property. A significant rent increase could result in good tenants looking for alternative rental properties with lower rent. Long-term tenants who are settled in your property usually mean minimal void periods, which can be more valuable to you than the rent increase.

What should you say to a tenant when proposing a rent increase?

When proposing a rent increase, you should prioritise maintaining a good relationship with your tenant, which means providing a valid reason for the increase. For example, you can refer to increased costs you are experiencing and explain the average market rates for similar properties.

When you send the Form 4 to the tenant, you should include a letter that provides an explanation and thank them for being a reliable tenant, showing your appreciation. Also include details of how you are following the correct legal processes, such as providing the required notice.

Offer the opportunity for the tenant to discuss the proposal and include the best way to contact you. End the letter with a positive statement, sharing that you hope for the tenancy to continue.

How will rent increases change under the Renters’ Rights Act?

The key changes coming into effect from 1 May 2026 for rent increase rules under the Renters’ Rights Act include:

• End of fixed term tenancies – Rent review clauses will no longer be written into tenancy agreements. All rent increases will need to follow the process of serving a Section 13 notice.
• Notice period for rent increases changes – Rather than providing one month’s notice for rent increases, landlords will be required to provide two months’ notice.
• Increases limited to once per year – Any rent increases will be restricted to a maximum of once per year.
• Rental bidding wars will be illegal – Landlords must let the property at the advertised rent price and cannot accept higher rent offers.
• First-tier Tribunal challenges – If the tenant believes a proposed rent increase is unfair, they will be able to use the free First-tier Tribunal to easily challenge it. The tribunal will set the rent amount based on what is a fair price in line with local market rents.

With many rules changing under the Renters’ Rights Act, you might be concerned about what you need to do to follow the correct legal processes. As an experienced letting agent covering Uppingham, Stamford and Leicestershire, we can help.

Contact our team to find out more about our letting services in the east Midlands area.