The UK rental market is in the midst of significant legislative reform. At the centre of this transformation is the Renters’ Rights Bill, a comprehensive proposal aiming to reshape the relationship between landlords, letting agents, and tenants. One of the most impactful areas of this bill is the change to rent increase regulations, which has prompted questions and concerns across the industry.

As a property manager, lettings agent, or landlord, it's important to understand how these proposed changes could affect your processes, communications, and income. In this blog, we’ll break down the key elements of the proposed rent increase reforms, explain how they fit into the wider Renters’ Rights Bill, and offer practical guidance on how to stay compliant, while continuing to run a successful, efficient property business.

A Quick Overview: What is the Renters' Rights Bill?

The Renters' Rights Bill is part of the UK Government's broader push to reform the private rented sector (PRS). It builds upon earlier proposals such as the Renters (previously the Renters' Reform Bill) Bill, aiming to provide greater protection and security for tenants while rebalancing the legal relationship between renters and landlords.

Key objectives of the Renters' Rights Bill include:

• Abolishing ‘no fault’ Section 21 evictions

• Standardising tenancy agreements

• Creating a Private Rented Sector Ombudsman

• Introducing clearer rules around rent increases

While each of these measures has major implications for how properties are managed, the rent increase rules are drawing particular attention due to their potential to directly impact rental income and financial forecasting for landlords and agents.

Rent Increase Reforms: What's Changing?

Under current legislation in England, landlords can raise rent once a year on a periodic tenancy, using a Section 13 notice, with at least one month’s notice. For fixed-term tenancies, rent increases can only occur if a clause in the tenancy agreement allows it, or if both parties agree.

The Renters' Rights Bill proposes to change this process in several key ways:

1. Notice Period Extended to Two Months

The Bill extends the required notice period for rent increases from one month to two months. This change is designed to give tenants more time to plan for increases or raise concerns through proper channels.

2. Limit to One Rent Increase per Year

Rent increases will be legally limited to once every 12 months, preventing landlords from issuing back-to-back increases. This standardisation reduces unpredictability and aligns with the goal of improving stability in the rental market.

3. No Automatic Increase Clauses in Tenancy Agreements

Landlords will no longer be able to include clauses that automatically increase rent each year, a practice that is common in longer-term contracts. All increases must now go through a formal process, ensuring transparency and fairness.

4. First-Tier Tribunal Challenges Made Easier

Tenants will have enhanced rights to challenge excessive rent increases via the First-Tier Tribunal. The burden of proof may now lean more heavily on landlords to demonstrate that increases are fair and reflect local market conditions.

5. Potential Link to Local Market Rents

The government is exploring whether rent increases should be tied to local market rents or inflation indicators such as the Consumer Price Index (CPI). While not yet confirmed, this move could introduce stricter limits on how much landlords can raise rents annually.

Implications for Property Managers and Lettings Agents

The changes proposed in the Renters' Rights Bill will require significant procedural updates for professionals managing rental properties. Here are some areas to pay attention to:

Operational Adjustments

• Update rent review calendars and workflows to reflect the new 12-month limit.

• Build in lead time to provide at least two months' notice for any increase.

• Review tenancy agreement templates to remove automatic increase clauses.

• Compliance and Documentation

• Maintain clear, documented evidence of market comparisons and property valuations to justify rent increases.

• Prepare to support landlords and tenants through the First-Tier Tribunal process if challenges arise.

Communication and Relationship Management

• Proactively communicate rent increase policies and timelines to tenants.

• Be ready to explain the rationale behind increases, especially when tied to local rental data or property improvements.

A New Era of Accountability

The Renters' Rights Bill reflects a growing trend across the UK to prioritise tenant security and reduce what some have called "unfair" rental practices. While this does place additional responsibility on landlords and property managers, it also presents an opportunity for professionals to streamline operations, improve transparency, and build stronger tenant relationships.

Compliance doesn’t have to mean complicated. With the right tools in place, you can manage rent increases, legal requirements, and tenant communications all from a single dashboard; that’s where togetha comes in.

How togetha Can Help You Stay Ahead

At togetha, we understand the evolving demands of property management. Our all-in-one platform empowers letting agents, landlords, and property managers to:

• Automate rent review workflows

• Schedule and send rent increase notices

• Maintain a compliant digital record of tenancy changes

• Track tribunal challenges and resolution timelines

• Centralise all communications with tenants and landlords

From managing a single portfolio, through to dozens of properties, togetha brings your essential tasks into one streamlined, compliant system, so you can stay focused on growing your business and delivering outstanding service.

If it's time for you to bring all your essential property management tasks into one place, book a 20-minute demo to see how togetha can streamline your business operations and maximise your revenue.