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

There Is No Cap — But There Are Rules

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.

Under 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"?

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:

• 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 to Assess the Market Rent

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.

What the Tribunal Considers

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. Understanding what they look at can help you set a realistic figure in the first place.

The Tribunal's Assessment Criteria

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

• 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

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 to Present Your Case at Tribunal

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.

Further Reading

• Section 13 Rent Increase Notice: New Rules — Step-by-step guide to serving a valid Section 13 notice in England.
• 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.