23 Apr 2026
Every landlord must review and, where necessary, reset their rent levels because once the new system begins the ability to adjust rent becomes restricted and slow and far too easy to challenge and game the process. This is one of the most overlooked risks because many landlords assume they can deal with rent increases later if needed. That assumption will not hold under the new rules.
From May 2026 rent increases can only be carried out using the formal statutory Section 13 process and this can only be done once in any 12-month period which means if the rent is set too low at the point the new system begins, it cannot be corrected quickly and as a landlord you will be locked into that position for a full year before any adjustment can be made. This creates an immediate financial risk across the portfolio.
Rents that are currently below market level will remain below market level for longer and costs will continue to rise but income will be fixed within a rigid structure.
The practical step is to carry out a full rent review now before May 2026 and every property must be assessed against current market conditions and is not about guesswork or optimism but about evidence. Comparable properties, local demand, and actual achieved rents must be considered and if a property is under rented, action must be taken now while there is still flexibility.
This may involve agreeing a new rent with the tenant or taking steps to reset the tenancy if appropriate and in May those options narrow significantly and there is also a behavioural aspect to this change. Tenants are more aware of their rights to challenge rent increases and that any increase must be realistic and justifiable.
Overreaching will lead to disputes and delays and you must strike the right balance between achieving market rent and maintaining a defensible position, this is another reason why acting before May 2026 is critical. There is more flexibility to reach agreement now than there will be later.
As rental bidding will also be removed from the process and you will be required to advertise a clear rent and accept that figure, you will not be able to encourage or accept offers above it and this reinforces the need to set the correct rent from the outset. There will be no opportunity to rely on demand to push the figure higher once the property is on the market.
Upfront rent will also be restricted which removes another tool that has been used to manage risk and places even greater importance on the base rent being correct.
Cash flow becomes more predictable but also more rigid and there is less room to adjust income in response to changing circumstances and from a business perspective this means planning must improve as margins will be tighter and mistakes will take longer to correct.
Landlords who enter May 2026 with incorrect rent levels will carry that problem forward for at least a year and that is avoidable if action is taken now as the process itself is straightforward but must be done properly.
Review the rent.
Compare it to the market.
Decide whether it is correct.
If it is not, take action before the window closes and do not assume that it can be dealt with later, as it cannot be dealt with easily later.
This is one of the clearest examples of a simple action that will have a long-term impact so get it right now and the portfolio remains more stable and get it wrong and the consequences will be felt throughout the next twelve months.
Find the government RRA Information Sheet to issue to tenants here: rentersrightsinfo.co.uk
Book a 30 minute personal consultation call with Property Legislation Expert Des Taylor here
