Increasing Rent Under the Renters' Rights Act: A Practical Guide for Surrey Landlords
Tue 11 Aug 2026
Shirley Moralee, Lettings Manager
Since the Renters' Rights Act 2025 came into force, one of the biggest areas of uncertainty for landlords has been rent reviews. Knowing when to increase the rent, how much to increase it by, and what happens if a tenant challenges the increase are questions many landlords are now considering.
A recent First-tier Tribunal (FTT) decision has provided one of the first indications of how these cases may be considered under the new legislation. While a single Tribunal decision does not create a legal precedent, it does offer some useful insight into the type of evidence landlords should be gathering.
For landlords across Surrey, the message is clear. Rent reviews have not become more difficult, but they do require a more considered and evidence-based approach.
Under the Renters' Rights Act, landlords can no longer rely on fixed-term tenancy renewals to introduce a new rental figure. Instead, rent increases during a periodic tenancy are generally made using the statutory Section 13 process.
In most cases, this means:
Most rent increases are accepted without issue, particularly where they reflect local market conditions and have been communicated clearly. However, tenants now have the right to challenge the proposed increase by referring it to the First-tier Tribunal.
That does not necessarily mean the increase is unreasonable. It simply means an independent body will determine what the market rent should be.
A common misconception is that the Tribunal decides whether a landlord has been "fair". In reality, its role is different.
The Tribunal's task is to determine what rent the property could reasonably achieve on the open market at that time. It is not there to negotiate a compromise between landlord and tenant or decide whether an increase feels affordable.
Instead, it considers the evidence presented by both parties before deciding what it believes is the market rent.
For landlords, that means preparation is becoming increasingly important.
A recently published Tribunal decision involved a landlord increasing the rent on a flat within a Build-to-Rent development in London.
The tenant challenged the increase and both parties submitted evidence to support their position. The tenant relied largely on advertised asking rents for similar properties.
The landlord, however, provided evidence of actual rents that had recently been agreed for comparable apartments within the same development.
The Tribunal ultimately supported the landlord's proposed increase.
One of the key reasons was that it placed greater weight on evidence of rents that had actually been achieved, rather than rents that had simply been advertised.
Although this is only one early decision, and future Tribunals are not bound to reach the same conclusion, it offers a useful indication of the type of evidence that may carry the greatest weight.
It is easy to understand why landlords often look at property portals when deciding how much rent their property could command.
After all, advertised rents are readily available and provide a snapshot of the local market. However, an advertised figure only shows what a landlord hopes to achieve.
It does not necessarily show what was eventually agreed.
The recent Tribunal decision suggests that evidence of actual completed lettings may be considerably more persuasive when determining market rent.
For landlords, this highlights the importance of relying on robust market evidence rather than assumptions.
If a proposed rent increase is ever challenged, the strength of the supporting evidence could make a significant difference.
Useful comparable evidence might include:
Simply pointing to rising costs or general market conditions is unlikely to be sufficient on its own.
The stronger the comparable evidence, the easier it becomes to demonstrate that the proposed rent reflects the current market rather than an arbitrary increase.
For many landlords, keeping track of local market trends can be challenging.
Rental markets move quickly and every property is different.
An experienced letting agent is often in a stronger position because they have access to evidence that is not always visible through online property portals. They know what similar homes have actually achieved, understand tenant demand in the local area, and can advise on whether a proposed increase is likely to reflect current market conditions.
That evidence can prove invaluable should a rent increase ever be questioned.
The Renters' Rights Act has not removed a landlord's ability to increase rent.
What it has done is place greater emphasis on transparency, evidence and following the correct process.
Most landlords will never find themselves before a Tribunal. However, the early indications suggest that those who can support their proposed rent with reliable market evidence will be in the strongest position should a challenge arise.
At Wills & Smerdon, we work closely with landlords across Surrey to provide realistic rental valuations based on current market conditions and achieved rents, helping to ensure that rent reviews are both fair and well supported.
If you would like advice on reviewing the rent for your property or understanding how the new legislation may affect your tenancy, our experienced lettings team will be happy to help.
A recent First-tier Tribunal (FTT) decision has provided one of the first indications of how these cases may be considered under the new legislation. While a single Tribunal decision does not create a legal precedent, it does offer some useful insight into the type of evidence landlords should be gathering.
For landlords across Surrey, the message is clear. Rent reviews have not become more difficult, but they do require a more considered and evidence-based approach.
When can landlords increase the rent?
Under the Renters' Rights Act, landlords can no longer rely on fixed-term tenancy renewals to introduce a new rental figure. Instead, rent increases during a periodic tenancy are generally made using the statutory Section 13 process.
In most cases, this means:
- Rent can normally only be increased once every 12 months.
- The prescribed Section 13 notice must be used.
- The tenant must be given the correct notice period.
- The proposed rent should reflect the current market value of the property.
Most rent increases are accepted without issue, particularly where they reflect local market conditions and have been communicated clearly. However, tenants now have the right to challenge the proposed increase by referring it to the First-tier Tribunal.
That does not necessarily mean the increase is unreasonable. It simply means an independent body will determine what the market rent should be.
What happens if a tenant challenges the increase?
A common misconception is that the Tribunal decides whether a landlord has been "fair". In reality, its role is different.
The Tribunal's task is to determine what rent the property could reasonably achieve on the open market at that time. It is not there to negotiate a compromise between landlord and tenant or decide whether an increase feels affordable.
Instead, it considers the evidence presented by both parties before deciding what it believes is the market rent.
For landlords, that means preparation is becoming increasingly important.
What can we learn from one of the first Tribunal decisions?
A recently published Tribunal decision involved a landlord increasing the rent on a flat within a Build-to-Rent development in London.
The tenant challenged the increase and both parties submitted evidence to support their position. The tenant relied largely on advertised asking rents for similar properties.
The landlord, however, provided evidence of actual rents that had recently been agreed for comparable apartments within the same development.
The Tribunal ultimately supported the landlord's proposed increase.
One of the key reasons was that it placed greater weight on evidence of rents that had actually been achieved, rather than rents that had simply been advertised.
Although this is only one early decision, and future Tribunals are not bound to reach the same conclusion, it offers a useful indication of the type of evidence that may carry the greatest weight.
Advertised rents versus achieved rents
It is easy to understand why landlords often look at property portals when deciding how much rent their property could command.
After all, advertised rents are readily available and provide a snapshot of the local market. However, an advertised figure only shows what a landlord hopes to achieve.
It does not necessarily show what was eventually agreed.
The recent Tribunal decision suggests that evidence of actual completed lettings may be considerably more persuasive when determining market rent.
For landlords, this highlights the importance of relying on robust market evidence rather than assumptions.
Why comparable evidence matters
If a proposed rent increase is ever challenged, the strength of the supporting evidence could make a significant difference.
Useful comparable evidence might include:
- Recently agreed rents for similar properties.
- Homes of a similar size, condition and specification.
- Comparable locations within the local area.
- Lettings completed within a similar timeframe.
Simply pointing to rising costs or general market conditions is unlikely to be sufficient on its own.
The stronger the comparable evidence, the easier it becomes to demonstrate that the proposed rent reflects the current market rather than an arbitrary increase.
Professional advice has never been more valuable
For many landlords, keeping track of local market trends can be challenging.
Rental markets move quickly and every property is different.
An experienced letting agent is often in a stronger position because they have access to evidence that is not always visible through online property portals. They know what similar homes have actually achieved, understand tenant demand in the local area, and can advise on whether a proposed increase is likely to reflect current market conditions.
That evidence can prove invaluable should a rent increase ever be questioned.
Our final thoughts
The Renters' Rights Act has not removed a landlord's ability to increase rent.
What it has done is place greater emphasis on transparency, evidence and following the correct process.
Most landlords will never find themselves before a Tribunal. However, the early indications suggest that those who can support their proposed rent with reliable market evidence will be in the strongest position should a challenge arise.
At Wills & Smerdon, we work closely with landlords across Surrey to provide realistic rental valuations based on current market conditions and achieved rents, helping to ensure that rent reviews are both fair and well supported.
If you would like advice on reviewing the rent for your property or understanding how the new legislation may affect your tenancy, our experienced lettings team will be happy to help.