The UK rental market is undergoing its most significant shake-up in a generation. At the heart of these changes lies the Renters’ Rights Bill, a comprehensive reform package that promises to rebalance the relationship between landlords, letting agents, and tenants.

Among the many measures, from abolishing Section 21 evictions to standardising tenancy agreements, the new rules around rent increases are set to have the most immediate impact on landlords’ bottom lines. For property professionals, preparing for these changes is about safeguarding income, preserving strong tenant relationships, and running an efficient, future-proof operation.

In this post, we'll break down what is changing, explain the risks and opportunities, and outline practical steps landlords and agents should take now to prepare for a new era of rental income management.

The Renters’ Rights Bill at a Glance

The Renters’ Rights Bill builds on earlier proposals such as the Renters’ Reform Bill, with a mission to increase tenant security and transparency in the private rented sector (PRS). Its key objectives include:

• Abolishing “no-fault” Section 21 evictions

• Standardising tenancy agreements across the sector

• Establishing a Private Rented Sector Ombudsman

• Introducing stricter rules around rent increases

While each of these measures requires attention, the rent increase reforms are already raising important questions for landlords: How do I plan rental income when increases are capped? What notice do I have to give? Can I still use rent review clauses?

Rent Increase Reforms: What’s Changing

Here’s a breakdown of the main changes that landlords and letting agents need to prepare for:

1. Longer Notice Periods

The Bill will extend the required notice period for rent increases from one month to two months. This means landlords must build in additional lead time when planning rent reviews to avoid missing windows for implementation.

2. One Increase Per Year

Landlords will be limited to one rent increase every 12 months, standardising the process and removing the flexibility some landlords currently rely on. Poor timing could leave you waiting an entire year before being able to make another adjustment.

3. Ban on Automatic Rent Review Clauses

Automatic rent increase clauses in tenancy agreements, for example, “rent will rise by 3% each year,” will no longer be valid. All rent increases must be processed formally through notice, with transparency and tenant acknowledgment built in.

4. Easier Tribunal Challenges

Tenants will gain greater powers to challenge rent increases through the First-Tier Tribunal. Landlords will need to justify increases with solid evidence that they reflect local market conditions, or risk having them rolled back.

5. Potential Link to Market Rents or CPI

While not yet confirmed, the government is considering pegging increases to either local market rents or inflation (via CPI). If adopted, this would effectively cap annual increases in a more formal way.

The Bigger Picture: Abolition of Section 21

Although not directly about rent levels, the abolition of no-fault evictions changes the calculus for landlords. You will not be able to end a tenancy simply to re-let at a higher rent. This means your rent review strategy must be both sustainable and defensible, striking a balance between income growth and tenant retention.

Risks and Opportunities for Landlords

Revenue Planning: With one permitted increase per year, landlords must get rent reviews right the first time. Misjudging the market could lock you into below-market rents for 12 months.

Compliance Burden: Failing to issue notices correctly, or attempting to rely on invalid clauses, risks disputes and reputational harm.

Tenant Relations: Transparent, well-justified increases may improve tenant trust and reduce disputes. Poorly handled ones could lead to tribunal cases.

Market Pressures: Despite regulation, rents may still climb if supply remains tight, but landlords must remain within statutory processes.

Early Rent Hikes: Some landlords are already raising rents before the Bill takes effect. While legal, this risks souring tenant relationships if seen as opportunistic.

How to Prepare: Practical Steps for Landlords and Agents

To stay compliant and maintain rental income, landlords and letting agents should begin adapting processes now. Here’s how:

1. Audit Tenancy Agreements

• Remove or revise any automatic rent increase clauses that will soon become unenforceable.

• Standardise agreements in line with upcoming reforms.

2. Update Rent Review Calendars

• Adjust internal systems to enforce the 12-month rule.

• Build in at least two months’ notice to tenants before increases.

• Consider aligning rent reviews with fixed tenancy cycles to simplify administration.

3. Strengthen Market Evidence

• Maintain a record of local market comparables to justify increases.

• Keep property condition and improvements well-documented.

• This evidence will be vital if challenged at tribunal.

4. Improve Communication

• Proactively explain increases to tenants, using market data to show fairness.

• Give tenants more context about maintenance costs, local trends, and property improvements to reduce disputes.

• Clear communication now can prevent escalation later.

5. Train Staff and Agents

• Ensure lettings teams understand the statutory notice process.

• Train staff in conflict resolution and tribunal support.

• Use consistent templates and language across all notices.

6. Budget for Change

• Model income forecasts under the new rules.

• Factor in the risk of tribunal challenges delaying or reducing expected increases.

• Build more conservative assumptions into your cashflow planning.

7. Consider Technology Solutions

Digital platforms like togetha can automate workflows, generate compliant notices, store tribunal records, and centralise tenant communication.

This reduces the administrative burden and ensures nothing falls through the cracks.

A New Era of Accountability

The Renters’ Rights Bill reflects a broader political and social shift: the PRS is moving toward greater transparency, fairness, and accountability. While that may reduce flexibility for landlords, it also offers an opportunity. By adopting best practices and building stronger tenant relationships, landlords can reduce turnover, avoid costly disputes, and run a more professional, sustainable business.

How togetha Can Help You Stay Ahead

At togetha, we understand that legislative reform creates uncertainty, but also an opportunity to modernise. Our platform empowers landlords, letting agents, and property managers to:

• Automate rent review workflows and notices

• Store digital records of tenancy changes and market evidence

• Track tribunal challenges and resolution timelines

• Centralise all communication with tenants

• Manage portfolios of any size in one place

With change on the horizon, now is the time to put systems in place that make compliance effortless.

Book a 20-minute demo today to see how togetha can help you prepare for the Renters’ Rights Bill, protect your rental income, and future-proof your property business.