Section 13 Notices: How Rent Increases Will Change After the Renters’ Rights Bill

2025-08-11

The Renters’ Rights Bill is set to transform how landlords can increase rent in England. Whether you’re a landlord, letting agent, or tenant, it’s vital to understand exactly what these changes mean for you.

One of the biggest shifts will be in how Section 13 Notices are used. These notices will become the primary legal tool for rent increases, replacing many of the current practices and adding stronger protections for tenants.

This guide breaks down:

How rent increases work right now.
What will change when the Bill comes into force.
Why the government is making these changes.
What the new Section 13 process will look like.
How to serve a Section 13 Notice correctly.

Current Rent Increase Rules

Under the current system, Fixed Term Assured Shorthold Tenancies (ASTs) give landlords and tenants natural opportunities to review and adjust rent.

Here’s how it works today:

At the end of the fixed term – When the tenancy is renewed, landlords can propose a rent increase, and the tenant can either accept, negotiate, or move out.
When the property is re-marketed – If the tenant decides not to renew, the landlord can set a new rent for incoming tenants based on current market conditions.
During the tenancy by agreement – At any point during the tenancy, both landlord and tenant can agree to change the rent. This often happens at a break clause or another mutually convenient time.

In short, rent changes now happen either at natural tenancy transition points or when both parties voluntarily agree. There’s flexibility, but also variation in how often and by how much rents are adjusted.

What Will Change with the Renters’ Rights Bill?

When the Renters’ Rights Bill becomes law, the way rent is reviewed and increased will change dramatically.

Here’s what’s coming:

1. All Fixed Term ASTs will become periodic tenancies

This conversion will happen automatically on the date the law comes into effect.
There will be no new tenancy renewals — tenancies will roll on indefinitely until either party ends them according to the proper notice rules.

2. No more tenancy renewals

Landlords will lose the ability to use tenancy renewal as a trigger for rent increases.
Instead, rent reviews will follow a fixed annual cycle through the Section 13 process.

3. One Section 13 Notice per year

Landlords will only be allowed to propose a rent increase once every 12 months.
The increase must reflect the current market rate for the property.

4. Greater tenant protection

Tenants will have stronger rights to challenge rent increases if they believe they’re above market value.
Disputes will be handled by the First-tier Tribunal.

5. Ban on bidding wars

New rules will prevent landlords or agents from encouraging tenants to outbid each other for a property.

These changes will standardise rent increase procedures and make them more transparent and predictable for tenants.

Why the Government is Making These Changes

According to the official Renters’ Rights Bill guidance on Gov.uk, the reforms aim to:

Abolish Section 21 evictions – This will remove so-called “no-fault” evictions and replace them with a simpler tenancy system where all assured tenancies are periodic.
Increase security for tenants – Tenants will have confidence that they cannot be evicted simply for challenging a rent increase.
Stop “backdoor evictions” – The Bill addresses cases where landlords raise rents excessively to indirectly force tenants out.
Protect fair market rents – Landlords will still be able to increase rents to a genuine market rate, but tenants will be able to appeal to a tribunal if they believe it’s too high.

Government statement:

“We will implement this new system in one stage, giving all tenants security immediately. Tenants will be able to appeal excessive above-market rents which are purely designed to force them out.”

In short, the goal is to make the private rental sector fairer, while still allowing landlords to receive a fair return on their property.

The New Section 13 Process Explained

Once the Bill becomes law, Section 13 Notices will be the only way to legally raise rent for an assured tenancy. Here’s what you need to know:

1. Frequency

Landlords can only propose a rent increase once per year. This applies to all periodic tenancies, whether they started as fixed term or not.

2. Market Rate Requirement

The proposed rent must reflect the price that could reasonably be achieved if the property were newly advertised.

3. Notice Period

Landlords must give at least two months’ written notice before the increase takes effect. This is a change from the current one-month rule for periodic tenancies.

4. Tenant’s Right to Challenge

If tenants believe the proposed rent exceeds the true market value, they can challenge it at the First-tier Tribunal.

5. Tribunal Safeguards

The Tribunal will:

Not increase the rent beyond the landlord’s proposed figure.
Prevent backdating of rent increases — the new rent will apply only from the date of the decision.
Allow up to a two-month delay in the increase for tenants facing financial hardship.

6. Ban on Other Rent Increase Clauses

Any rent review clauses in existing tenancy agreements will become null and void. Section 13 will be the only legal route to raise rent.

How to Serve a Section 13 Notice

Landlords and agents must follow a clear process to serve a valid Section 13 Notice.

Step 1: Use the correct form

Complete Form 4: Landlord’s Notice Proposing a New Rent (Gov.UK).
Ensure all details are accurate, including the proposed rent and the date the increase will take effect.

Step 2: Give proper notice

Serve the notice at least two months before the proposed start date.
The notice cannot take effect within the first 12 months of the tenancy.

Step 3: Serve it correctly

Deliver the notice to the tenant in person, by post, or another legally acceptable method.

How Tenants Can Challenge a Section 13 Notice

If a tenant disagrees with a proposed rent increase:

Step 1: Complete Form 6

Use Form 6: Application Referring a Notice to a Tribunal (available on the same Gov.UK page as Form 4).

Step 2: Submit before the deadline

The form must be received by the Tribunal before the date the increase is due to take effect.

Step 3: Include supporting documents

Attach a copy of the Section 13 Notice (Form 4) and any evidence of local market rents to support the challenge.

What This Means for Landlords, Agents, and Tenants

Landlords will need to review rent levels annually and be ready to justify them with evidence of market rates.
Letting agents will need to update their processes to comply with the new rules, including longer notice periods.
Tenants will gain more security and a clear process for challenging increases without fear of losing their home.

Final takeaway:

The Renters’ Rights Bill will make Section 13 Notices the central mechanism for rent increases in England. Landlords will still be able to adjust rent to reflect market conditions, but they’ll need to follow a stricter, more transparent process — and tenants will have more power to dispute unfair increases.