How Much Can a Landlord Increase Rent? Market Rent, Comparables, and the Tribunal

Published: 15 March 2026

TL;DR

Under the Renters' Rights Act 2025, landlords can increase rent once per year using a Section 13 notice, capped at the open market rate for the property. There is no percentage limit, but the increase must reflect what a willing tenant would pay for a comparable property in the current market. If your tenant challenges the increase at the First-tier Tribunal (Property Chamber), the Tribunal will independently assess the market rent based on comparable evidence, condition, and location—your mortgage costs and personal circumstances are irrelevant. To avoid a challenge or successfully defend one, document at least five comparable properties before proposing an increase.

In England, there is no statutory cap on rent increases—but the increase must reflect the open market rent for the property. Open market rent means what a willing tenant would pay and a willing landlord would accept, in the property's current condition, disregarding any improvements the tenant has made or the landlord's personal costs. To propose a lawful increase, you must serve a Section 13 notice (the formal process for raising rent on an assured tenancy). If your tenant challenges the increase at the First-tier Tribunal (Property Chamber)—the independent body that resolves landlord-tenant disputes—the Tribunal will assess whether your proposed rent matches the local market. Failure to document comparable evidence puts you at risk of losing a tribunal challenge and being forced to lower the rent.

Is There a Limit on How Much a Landlord Can Increase Rent?

One of the most common questions private landlords ask is: "How much can I increase the rent?" The answer under English law is that there is no statutory cap or percentage limit. However, that does not mean you can charge whatever you like.

According to the Renters' Rights Act 2025, all rent increases on assured tenancies must go through the Section 13 process, and the increase must reflect the open market rent for the property. If the tenant challenges the increase at the First-tier Tribunal, the Tribunal will determine the market rent independently — and you need to be prepared for that.

There is no percentage cap on rent increases in England. The test is whether the proposed rent reflects what the property would fetch on the open market.

What Is "Market Rent" and How Is It Calculated?

Market rent is the rent that the property would reasonably command if it were let on the open market today, in its current condition, with the current furniture and facilities provided by the landlord.

Crucially, the market rent assessment disregards (per Schedule 2 Ground 14 of the Housing Act 1988):

• Any increase in value attributable to improvements carried out by the tenant
• Any reduction in value caused by the tenant's failure to maintain the property
• The personal circumstances of the landlord or tenant (e.g., your mortgage costs are not relevant)

This means market rent is an objective measure. It does not matter what your costs are — what matters is what a willing tenant would pay and a willing landlord would accept in an arm's-length transaction.

How Do I Assess the Market Rent for My Property?

Before proposing a rent increase, you should carry out your own market rent assessment. This is not a formal valuation — it is a practical exercise in gathering evidence of what similar properties are letting for in your area.

Step-by-Step Approach

1. Identify comparable properties. Search property portals (Rightmove, Zoopla, OnTheMarket) for properties of a similar size, type, and condition in the same area. Focus on properties that are currently listed or have recently let.
2. Note the key details. Record the asking rent, number of bedrooms, property type, condition, and any notable features (parking, garden, furnished/unfurnished). Screenshot the listings with dates.
3. Adjust for differences. If your property has fewer bedrooms, no garden, or is in worse condition than the comparables, adjust your expectations downward. If it has superior features, you may be justified in going higher.
4. Consider the local market. Rents vary significantly even within the same postcode. A property on a busy main road will command less than an identical property on a quiet residential street.
5. Arrive at a figure. Based on your research, settle on a rent that you can justify with evidence. Keep your research — you may need it later.

Worked Example: Two-Bed Terrace in Manchester

You own a two-bedroom terrace in Chorlton, Manchester, currently let at £950 per month. The tenancy has been running for two years and you are considering an increase. You research five comparable properties:

| Address (approx.) | Bedrooms | Type | Condition | Monthly Rent | Notes | |---|---|---|---|---| | Chorlton Road | 2 | Terrace | Good | £1,100 | Rear garden, recently refurbished | | Barlow Moor Road | 2 | Terrace | Fair | £1,050 | No parking, dated kitchen | | Wilbraham Road | 2 | Terrace | Excellent | £1,150 | Off-street parking, modern kitchen | | Hardy Lane | 2 | Terrace | Good | £1,075 | Small garden, neutral decor | | Edge Lane | 2 | Terrace | Fair | £1,025 | Main road location, no garden |

Your property has a rear garden and is in good condition, but the kitchen is five years old and there is no parking. Based on the comparables, a market rent of £1,075–£1,100 is defensible. You decide to propose £1,090 per month — a £140 increase (14.7%) — and document your research in case the tenant refers it to the Tribunal.

If the tenant challenges, you can present your table of comparables, explain the adjustments, and show that £1,090 sits comfortably within the local market range.

What Does the First-tier Tribunal Consider When Setting Rent?

If your tenant refers the Section 13 notice to the First-tier Tribunal (Property Chamber), the Tribunal will carry out its own assessment of the market rent. The Tribunal applies the legal test in Section 14 of the Housing Act 1988: rent must not be more than the open market rent for the property, disregarding improvements by the tenant and any personal circumstances of either party. Understanding what they look at can help you set a realistic figure in the first place. For detailed guidance on preparing for a Tribunal hearing, see our article on how to prepare for a First-tier Tribunal rent dispute.

The Tribunal's Assessment Criteria

Per Section 14 of the Housing Act 1988, the Tribunal considers:

• Location and neighbourhood. Proximity to transport, schools, shops, and amenities.
• Size and layout. Number of bedrooms, reception rooms, and overall floor area.
• Condition and state of repair. A well-maintained property commands more than one with outstanding repairs. A valid EPC rating and up-to-date safety certificates also factor in.
• Age and character. A period property may command a premium; a 1960s flat may not.
• Furnished or unfurnished. Furnished properties typically achieve higher rents, but the quality of furniture matters.
• Comparable evidence. The Tribunal will look at actual lettings in the area, not just asking rents.

What the Tribunal Does Not Consider

Per Section 14, Housing Act 1988, the Tribunal does not consider:

• Your mortgage payments or other financial obligations
• How much you paid for the property
• Your desired yield or return on investment
• The tenant's ability to pay

You can read the full text of Section 14 of the Housing Act 1988 on the legislation.gov.uk website.

What Are Common Mistakes When Proposing a Rent Increase?

Setting the Rent Based on Costs, Not Market Evidence

Many landlords calculate their desired rent by working backwards from their mortgage, insurance, and maintenance costs. Whilst it is sensible to understand your break-even point, the market does not care about your costs. A property in a low-demand area may not generate enough rent to cover your mortgage — but that does not entitle you to charge above the market rate.

Relying on Asking Rents Rather Than Achieved Rents

Asking rents on property portals are a useful starting point, but they are not the same as achieved rents. Properties often let for less than the asking price, particularly in areas with high supply. If you can access data on actual lettings (some portals and agents publish this), it provides stronger evidence.

Ignoring the Condition of Your Property

If your property has outstanding repairs, dated decor, or ageing appliances, it will not achieve the same rent as a freshly refurbished comparable. Be honest about the condition of your property when assessing the market rent. Ensuring you meet your repair and maintenance obligations can directly support a higher market rent.

How Should I Present My Case at a Tribunal Hearing?

If your tenant does refer the increase, you will have the opportunity to present your comparable evidence. Here is how to make the most of it.

Prepare a Schedule of Comparables

Create a simple table listing each comparable property with:

• Address or approximate location
• Number of bedrooms and property type
• Asking or achieved rent
• Date of listing or letting
• Key similarities and differences to your property

Provide Supporting Documentation

• Screenshots of listings (with dates)
• Any correspondence with local letting agents about market rents
• Photos of your property showing its condition and features
• Details of any recent improvements you have made

Be Realistic

The Tribunal members are experienced. They know the local market and will have access to their own data. If your proposed rent is reasonable and supported by evidence, the process is likely to confirm it. If it is inflated, the Tribunal will adjust it — and that adjustment is binding.

The Bottom Line

For private landlords in England, you can increase your rent to the market rate, and there is no percentage limit. But "market rate" is an evidence-based figure, not a wish. Take the time to research comparable properties, document your findings, and propose a rent that you can justify. If you do this well, the Section 13 process will work in your favour — whether or not the tenant challenges it. Remember that under the current rules in England, rent increases cannot be used as a backdoor eviction since Section 21 has been abolished.

Frequently Asked Questions

Can a landlord increase rent every year in England?

Yes. According to the Renters' Rights Act 2025, landlords can increase rent once per 12-month period on assured tenancies by serving a valid Section 13 notice. The notice must give at least two months' notice for periodic tenancies. More frequent increases are not permitted.

Can I increase rent by more than 10% in one go?

Yes, provided the new rent reflects the open market rate. There is no percentage cap under English law. However, a large increase is more likely to be challenged by the tenant at the First-tier Tribunal, so you must have strong comparable evidence to justify it. Per Section 14 of the Housing Act 1988, the Tribunal will assess whether your proposed rent matches the market, not whether the percentage increase is "reasonable" in isolation.

What happens if I set the rent too high and the tenant challenges it?

The First-tier Tribunal will independently determine the market rent. If they find your proposed rent was above market rate, they will set a lower figure, which becomes binding. You cannot re-serve a Section 13 notice until the next 12-month cycle. Additionally, if the Tribunal believes the increase was excessive or intended to pressure the tenant into leaving, it may affect your credibility in future disputes. See our guide on preparing for a First-tier Tribunal rent dispute for what to expect.

Do I need to give a reason for increasing the rent?

No. You do not need to provide a reason on the Section 13 notice or justify the increase to the tenant in advance. However, you must be able to justify the increase with comparable evidence if challenged. Increases that reflect rising mortgage costs, higher insurance premiums, or inflation are common reasons landlords cite privately, but these are not relevant to the legal test—only market rent matters.

Can I ask for rent in advance when increasing the rent?

You can request rent in advance at the start of a tenancy (subject to the tenant's agreement), but you cannot unilaterally change the payment terms mid-tenancy without the tenant's consent. If you want to move from monthly in arrears to quarterly in advance, for example, you must negotiate this separately—it is not part of the Section 13 rent increase process. For more on upfront payments, see our article on how much rent in advance can a landlord ask for.

What if the tenant refuses to pay the increased rent?

If the tenant does not refer the Section 13 notice to the Tribunal within one month, the increase takes effect automatically on the date specified in the notice. If the tenant continues to pay the old rent after that date, they are in arrears. You can pursue the arrears through the normal process, but you cannot serve a Section 21 notice (no-fault eviction) because Section 21 has been abolished. You would need to rely on a Section 8 ground for possession, such as Ground 8 (serious rent arrears).

Sources and References

This article cites:

• Renters' Rights Act 2025 — primary statute governing assured tenancies and rent increases post-2026.
• Housing Act 1988, Section 14 — legal test for market rent determination by the First-tier Tribunal.
• Housing Act 1988, Schedule 2 Ground 14 — statutory disregards in assessing market rent (tenant improvements, personal circumstances).
• First-tier Tribunal (Property Chamber) — tribunal procedures and guidance for rent dispute resolution.

Further Reading

• Section 13 Rent Increase Notice: New Rules — Step-by-step guide to serving a valid Section 13 notice in England.
• How to Prepare for a First-tier Tribunal Rent Dispute — What to expect at a Tribunal hearing and how to present your case.
• How Much Rent in Advance Can a Landlord Ask For? — Rules on upfront rent payments and tenancy deposits.
• Periodic Tenancy Explained for Landlords — How rolling tenancies affect your rent increase schedule.
• Landlord Tax Guide: Rental Income — How increased rent impacts your tax obligations and allowable deductions.