Understanding Section 13 notice in a Changing Market
With the major legislative changes introduced from May 1st, rent increases are becoming more structured and more scrutinised than ever before. For landlords, it’s no longer just about deciding to increase the rent. It’s about following the correct process, providing evidence, and ensuring everything is properly documented.
When Can You Increase Rent?
Under the new rules for assured periodic tenancies, rent increases will be more limited.
Landlords will only be able to increase rent once per year, and importantly, no increase can be made during the first year of a tenancy. In addition, once a rent increase has taken effect, you must wait at least 12 months before increasing it again. Regardless of how the increase was agreed.
How to Increase Rent Correctly
Before taking any formal steps, it’s strongly recommended to have an open conversation with your tenant. Agreeing to an increase informally can help maintain a positive relationship and avoid disputes later on.
However, even if an increase is agreed, you are still legally required to follow the formal process.
From 1 May 2026, landlords must complete Form 4A: Landlord’s notice proposing a new rent, which will be available via GOV.UK. This form officially notifies the tenant of the proposed increase and includes guidance on how it should be used.
You must then provide your tenant with at least two months’ notice before the new rent takes effect. This formal notification process is known as the Section 13 procedure. It must be followed every time you increase the rent, without exception.
Serving the Notice
Serving the notice correctly is just as important as completing it.
You can serve notice:
- In person
- By post
- By email (if permitted within the tenancy agreement)
Whichever method you choose, it is essential to keep clear proof of service. Failure to demonstrate this could invalidate the notice.
Justifying the Rent Increase
Rent increases must reflect true market value. This means the new rent should be in line with what the property could reasonably achieve if it were re-let on the open market.
To support this, landlords should keep evidence such as:
- Comparable local rental listings
- Recent let agreed prices
- Market insights or valuation reports
This evidence becomes particularly important if the increase is challenged.
What If a Tenant Disagrees?
If a tenant believes the proposed rent is higher than the open market rate, they have the right to challenge it through the First-tier Tribunal (Property Chamber).
The tribunal will review the evidence and determine a fair rent, which could be:
- The same as proposed
- Lower than proposed
- Or even higher
In most cases, the new rent will apply from the date specified in the Section 13 notice. However, if the tribunal believes the tenant would suffer financial hardship, it may delay when the new rent takes effect.
Transitional Rules You Need to Know
If you served a rent increase using the previous Form 4 before 1 May 2026, it will still be valid, even if the new rent begins after that date. The original notice periods will continue to apply.
However, any rent increases agreed under a rent review clause before 1 May 2026, but due to take effect after that date, will no longer be permitted under the new rules.
Common Mistakes to Avoid
Many landlords fall into the trap of:
- Not following the formal Section 13 process
- Failing to provide sufficient notice
- Lacking evidence to justify increases
- Not keeping proof of service
These mistakes can result in delays, disputes, or rejected rent increases.
Best Practice for Landlords
To stay compliant, landlords should ensure they follow a clear and consistent process for every rent increase. Keeping detailed records and using reliable methods of communication is vital. It’s equally important to gather and retain evidence that supports the new rental figure. This ensures you are fully prepared should a tenant challenge the increase.
Supporting You Every Step of the Way
At DDM Lettings, we guide landlords through every stage of the rent increase process, from providing accurate, evidence-based valuations to ensuring notices are correctly served and fully documented. This means you can move forward with confidence, knowing your rental income is both fair and fully compliant with the latest legislation. If you need more support or information about rent increases, get in touch today.
