Introduction: Big Changes Are Coming, But Don't Panic
A major reform of renting laws is on the horizon in England. The Renters’ Rights Act officially became law on the 27th October 2025, bringing about significant changes to the private rental sector, in particular how rent can be set and increased. As a landlord, it’s natural to feel concerned about new rules. However, with the right information (and a good letting agent by your side), you can navigate these changes confidently. In this blog, we’ll break down the key rent-related changes in simple terms – focusing on what’s actually changing, why it’s happening, and what it means for you as a landlord. We’ll also explain how Anthony Quirk Lettings can help you adapt so that there are no unwelcome surprises.
No More Bidding Wars: Advertised Rent Is the Limit
One headline change is a ban on “rental bidding wars.” Under the new law, the rent you advertise for your property will be the maximum rent you can accept. In other words, landlords and agents will not be allowed to ask for or accept a higher rent than the advertised price. Even if multiple tenants are interested and one offers to pay more, you cannot take above the listed rent. This rule aims to create a fairer playing field for tenants, so everyone knows the price upfront.
For landlords, this means you’ll need to set the asking rent carefully from the start. You won’t be able to advertise at (say) £1,000 and then choose a tenant who offers £1,100. The advertised figure is effectively a cap. The positive side is that it brings transparency and avoids messy bidding situations. Tenants will appreciate the clarity, and you’ll save time by not having to field escalating offers. Work with your letting agent to price the property at a realistic market rate – one that reflects what the home is truly worth in the current market. A knowledgeable agent can help assess comparable rentals in the area, so your listing price is competitive yet optimal. By getting the price right initially, you’ll attract good tenants without needing any bidding games.
Rent Increases – Only Once per Year, with Fairness in Mind
Another key change is about raising the rent during a tenancy. The new law will limit rent increases to once per year for each tenancy. This means you cannot raise the rent more frequently than annually. If your tenant has been in the property for, say, 6 months, you’ll need to wait until a full year has passed before proposing any increase. This rule is designed to prevent frequent or surprise rent hikes that could put tenants under pressure.
Importantly, there is no fixed percentage cap on how much you can increase the rent. Unlike some countries that impose a strict percent limit, the Renters’ Rights Act does not set a hard cap like “no more than 5% increase,” for example. Instead, the guiding principle is that any increase must be in line with the open market rent for your property. In plain terms, you can raise the rent to whatever the current market rate would be if you were advertising the property fresh – but no higher. The idea is that landlords should be able to get a fair market rent, but not to inflate rents beyond what is reasonable for that property and area.
To put this into context: if rents in your area have genuinely gone up, you are allowed to reflect that in your annual increase. There’s no government-imposed percentage limit on the increase, as long as the new rent still falls within a normal market range for similar properties. However, if you try to raise the rent far above local market value, the system provides a check (more on that next). The emphasis is on fairness – you can adjust to market conditions but not take advantage of tenants with excessive hikes.
Also note that any rent increase will need to follow a formal process. Under the new rules, landlords must use the official Section 13 notice procedure (from the Housing Act 1988) to propose an increase, giving the tenant at least 2 months’ notice before the higher rent kicks in. You won’t be able to slip in rent rises through contract clauses or more often than annually – the once-per-year via proper notice is the only route. This standardized process actually makes life simpler in many ways: it sets a clear timeline and avoids confusion. As an experienced letting agent, Anthony Quirk Lettings can handle serving the correct notice and timing it right, ensuring you stay compliant while getting the rent update you need.
Tenants’ Right to Challenge Unfair Increases
What if a landlord and tenant disagree about the new rent? The law strengthens tenants’ ability to push back against increases they feel are too high. If you propose a rent that the tenant believes is above the going market rate, the tenant has the right to challenge it via the First-tier Tribunal (Property Chamber). This is a resident-friendly tribunal (a bit like a housing court) that can review rent disputes. The tenant can refer your proposed increase to the tribunal if they truly think it’s excessive or not in line with similar properties in the area.
For landlords, this means you should be prepared to justify your increase as reasonable. If a case goes to the tribunal, the tribunal will determine what the market rent for the property should be based on evidence (e.g. local rent levels for comparable homes). The crucial point here is that the tribunal cannot increase the rent above what you asked for – it can only confirm the rate or potentially set it lower, never higher. So you won’t be penalized for an overshoot beyond losing the higher rent; in fact, this rule encourages tenants to challenge without fear that it could backfire on them. The tribunal can also prevent any backdating of the rent increase (meaning the new rent would only apply from the decision date, not retroactively), and in cases of genuine hardship they could even defer the increase for a short time.
While the prospect of a tribunal challenge might sound daunting, in practice it will likely be a last resort. If you stick to fair, market-based increases, challenges should be rare. This provision is mainly there to rein in any outlier cases of unreasonable rent hikes. Most conscientious landlords already raise rent in line with market trends, not double it overnight, so the impact on you should be minimal. And remember, your letting agent can advise you on current market rents and help gather evidence (like recent comparable rent prices in the neighbourhood) to support any increase you propose. By doing your homework and keeping things reasonable, you can avoid tribunal disputes altogether.
What These Changes Mean for Landlords
From a landlord’s perspective, you might be wondering how these new rules will affect your rental business day-to-day. Here’s the bottom line: the goal is to create more stability and transparency in rentals, which can benefit good landlords while curbing only the more extreme practices. Let’s break down the practical implications:
- Setting the Right Advertised Rent: Since you cannot accept above your advertised rent, it’s critical to list your property at a price you’re satisfied with. You may need to adjust your pricing strategy slightly – for instance, avoid deliberately under-pricing just to attract interest with an intention to bid up later (that strategy won’t be possible now). Instead, lean on market data and your agent’s expertise to set a fair asking rent from the outset. The upside is you’ll get the rent you expect, and tenants will feel the system is fair, which can lead to more trust and fewer void periods.
- Planning Rent Increases Thoughtfully: With only one increase allowed per year, you’ll want to plan ahead for any rent adjustments. This means factoring in things like inflation, interest rate changes, or increased costs over a 12-month horizon. You might decide to implement modest annual increases rather than infrequent large jumps. Always remember to give proper notice (at least 2 months) and consider discussing the change with your tenant openly. Many tenants accept reasonable increases if they understand the rationale and see that it aligns with the local market. By being transparent and sticking to the yearly schedule, you maintain goodwill while keeping your investment profitable.
- Staying Within Market Rates: The absence of a strict cap doesn’t mean unlimited freedom to raise rents – the market rate is effectively your cap. Overcharging beyond the area’s going rate is likely to lead to challenges or even difficulty finding tenants in the first place. In practice, this means do your research or consult your letting agent about comparable rents whenever you plan an increase. If you’ve made significant improvements to the property or there are other factors, those can justify being at the higher end of the market range. Just avoid overshooting far above what similar properties get. Keeping increases proportional to the market will not only keep you on the right side of the law but also make your tenants more inclined to stay, reducing costly turnover.
- Documentation and Evidence: In the event a tenant does question an increase, it helps to be prepared. Document how you arrived at the new rent – for example, noting recent let figures for similar houses on the same street, or referencing guidance from official rental indexes. By having this information, you can confidently show that you’re simply aligning with market conditions. Many landlords won’t ever need to break out this evidence, but it’s good practice to have it. It’s also a service that Anthony Quirk Lettings can provide, as we routinely track local rental values and can supply a comparative analysis to support your case if needed.
At first glance, these changes might sound like landlords are losing some flexibility. It’s true that spontaneous rent hikes or bidding above asking will be off the table. However, most professional landlords won’t find the new rules too onerous, since it basically formalizes what ethical landlords already do: price rentals fairly, raise rents responsibly, and treat tenants transparently. The benefit for you is a more predictable framework – you know the rules of the game, and so do tenants, which can lead to more stable, long-term tenancies and fewer conflicts.
How Anthony Quirk Lettings Can Help You Navigate the Changes
Legislation updates can be daunting, but you don’t have to figure this all out alone. This is where a knowledgeable letting agent becomes invaluable. As an experienced letting agency, Anthony Quirk Lettings is here to act as your guide and expert partner through these reforms. Here are some ways we can help:
- Expert Rent Pricing: We will help you determine the optimal asking rent for your property in light of the new “no bidding over asking” rule. Our team constantly monitors the local market, so we can ensure your advertised rent is competitive yet maximizes your income within the legal guidelines. By setting the right price from the start, you attract quality tenants and comply with the law effortlessly.
- Managing Rent Increase Process: When it’s time to review rent, we’ll assist with scheduling and implementing the annual rent increase. We’ll prepare and serve the proper Section 13 notice on your behalf, making sure all the i’s are dotted and t’s are crossed. We’ll also advise on an appropriate increase amount, balancing your financial needs with what the market supports. Our goal is to help you avoid disputes by getting it right and communicating clearly with your tenant well in advance.
- Market Evidence and Tribunal Support: In the unlikely event a tenant challenges an increase as too high, Anthony Quirk Lettings will be in your corner. We can provide the market data and comparisons needed to justify your proposed rent. Our staff can guide you through the First-tier Tribunal process if it comes to that, although our proactive approach is aimed at preventing such situations from arising. Knowing you have an expert team backing you can give you peace of mind to proceed with confidence.
- Keeping You Informed: Laws and regulations are always evolving. We stay up-to-date with the latest legal requirements (like the Renters’ Rights Act) so that you remain compliant and avoid any penalties. We’ll keep you informed through newsletters, seminars, or one-on-one advice about what changes mean for you. Consider us your go-to resource for landlord guidance – if you’re unsure about something, just ask us. It’s part of our service to make sure our landlords are never caught off guard by new rules.
Conclusion: Embrace the Change with the Right Support
The Renter’s Rights Act is set to shake up some established renting practices. Change can be unsettling, but these measures on rent setting and increases are ultimately about creating a fair and stable rental market. For landlords who run their business professionally, there’s little to fear. By advertising at a fair rent and adjusting it at most once a year in line with market conditions, you’ll continue to do well – and likely foster better tenant relationships in the process.
The key is to stay informed and adapt your approach. With Anthony Quirk Lettings by your side, you can do exactly that. We pride ourselves on being experts in the local rental market and the ever-changing regulations. Our job is to sweat the details, so you don’t have to. If you have any questions about the upcoming changes or want personalised advice on your rental strategy, get in touch with us. We’re here to help you navigate this new era of renting with confidence and ease, ensuring that your investment continues to thrive under the new rules.
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