When landlords think about the Renters’ Rights Act, most immediately focus on the loss of Section 21. It’s understandable. That change feels significant and very visible.

However, one of the key insights from our recent Concentric Sales and Lettings seminar highlighted a different concern, and arguably a more impactful one long term.

Rent increases...

While Section 21 removal changes how landlords regain possession, the new rules around rent increases could directly affect profitability, cash flow, and long-term returns. And for many landlords, this is where the real challenge begins.

From May, the way rent is increased will fundamentally change. There will no longer be multiple routes or informal conversations that lead to agreement. Instead, there will be one formal method... Section 13.

This removes flexibility. Landlords will no longer be able to rely on simple agreements with tenants or build rent review clauses into tenancy agreements. Even clauses linked to inflation, such as CPI or RPI increases, will become invalid.

The only option will be a formal notice.

On the surface, that may not seem like a major issue. Section 13 already exists and is used today when tenants refuse to agree to an increase. The difference lies in how the process will work moving forward.

The first change is the notice period. Currently, landlords are required to give one month’s notice. Under the new rules, this doubles to two months. That alone slows down the process and requires earlier planning.

But the bigger issue is what happens next.

Tenants will still have the right to challenge a rent increase through a tribunal, just as they do now. The key difference is how the outcome is applied. At present, if a landlord is successful, the increase is backdated to the original notice date. This means there is no financial loss during the waiting period.

Under the new rules, that changes completely.

If a tenant challenges the increase, and the case takes several months to be resolved, the new rent will only apply from the decision date, not from when the notice was served. This means landlords could lose several months of increased rent, even if the tribunal agrees the new figure is fair.

In practical terms, this could shift rent increases from an annual process to something closer to every 18 months.

That delay creates a clear incentive for tenants to challenge increases, even if they ultimately accept the outcome. By doing so, they effectively delay paying the higher rent for as long as possible.

This is where landlords will need to adapt.

The process cannot become purely transactional. Communication will be more important than ever. Speaking with tenants, explaining the reasoning behind increases, and maintaining good relationships will help reduce the likelihood of disputes.

However, informal agreement alone is not enough. Even if a tenant verbally agrees to an increase, landlords will still need to follow the formal process to secure it properly.

If a tenant pushes back after receiving notice and offers a lower figure, there may be an opportunity to reach a compromise. In many cases, agreeing a slightly reduced increase can be more beneficial than entering a lengthy tribunal process.

The key is ensuring that any agreement is clearly documented and legally sound.

Evidence will also play a bigger role. Landlords will need to justify increases based on market value, using comparable properties and data to support their position. This isn’t just best practice; it will be essential in defending any challenge.

At the same time, landlords should remain realistic. Pushing rent above market value increases the likelihood of disputes and reduces the chances of success at tribunal. A balanced, evidence-based approach is far more effective.

There is also an immediate takeaway for landlords today.

The current rules remain in place until May. That creates a window of opportunity. If rents have not been reviewed recently, now is the time to assess where they sit in relation to the market.

Waiting until after the changes come into force may limit flexibility and slow the process significantly.

The Renters’ Rights Act is reshaping how landlords operate, and rent increases are a key part of that shift. While the changes may create new challenges, those who understand the process and prepare early will be in a far stronger position.

If you want support reviewing your rents and understanding how to approach increases before and after the changes, we can help guide you through the next steps.

Watch the Seminar!