As specialists in eviction services and housing law, Landlord Action understands the complexities landlords face when managing rental properties and is here to help you stay one step ahead. With the impending enactment of the Renters' Rights Bill, understanding how Section 13 of the Housing Act 1988 will operate under the new rules is essential
This article breaks down what landlords need to know when proposing a rent increase for a periodic assured tenancy - the default tenancy type once assured shorthold tenancies are abolished in England. Whether you're managing a single property or a growing portfolio, now is the time to make sure your processes are compliant and watertight.
A Section 13 notice is a formal legal document landlords use in England to propose a rent increase for tenants on an assured periodic tenancy. These tenancies typically run on a rolling basis, month to month or week to week after any fixed term ends. The notice is named after Section 13 of the Housing Act 1988, which sets out the legal framework for raising rent in these circumstances.
With the upcoming Renters’ Rights Act, fixed-term tenancies will no longer exist, meaning all new tenancies will automatically become periodic. As a result, the Section 13 process will become the only lawful way for landlords to increase rent. Other methods, such as rent review clauses in fixed-term contracts, will no longer be valid. Landlords must complete form 4 to notify tenants of a proposed rent increase and provide at least two months’ notice before the increase taking effect.
Under the Renters’ Rights Act, landlords may increase rent once every 12 months using a Section 13 notice.
For fixed-term tenancies (while they still exist), rent can only be increased if the tenancy agreement includes a specific rent review clause. In these cases, landlords cannot use a Section 13 notice during the fixed term.
Given rising market rents and inflation, it’s more important than ever for landlords to review rents annually. Failing to do so can leave rent levels significantly below market value, making it harder to adjust later without affecting tenant affordability or triggering disputes.
To lawfully propose a rent increase under a periodic tenancy, landlords or their appointed letting agents must complete and serve Form 4, the official Section 13 notice.
This form is available on the GOV.UK website and must be filled out accurately with the following key information:
Paul Shamplina, founder of Landlord Action, says: “It’s surprising how many rent increases fail simply because the notice wasn’t served properly. We regularly help landlords at Landlord Action who come to us after the tenant disputes the increase – and a mistake on the form or a missed deadline can mean starting the whole process again.”
See LandlordZONE’s article on the importance of serving statutory notices and other documents correctly for more insight.
Note: If you're increasing rent for an assured agricultural occupancy, you must use a different form. Form 5: Landlord’s or licensor’s notice proposing a new rent or licence fee under an Assured Agricultural Occupancy of premises situated in England.
If a tenant does not accept the proposed rent increase outlined in a Section 13 notice, they have the right to challenge it by referring the matter to the First Tier Tribunal before the new rent takes effect.
Once the Tribunal receives the application, it will arrange a hearing where both landlord and tenant can present their cases. The Tribunal’s role is to determine a fair market rent for the property, taking into account factors such as location, condition, and comparable rents in the area. The Renters’ Rights Bill protects tenants to make sure they are able to challenge rent increases without the risk of ending up in a worse financial position. The Tribunal will not be allowed to raise the rent above the amount proposed, and the new rent will take effect from the date of the Tribunal’s decision - it will no longer be backdated.
When a rent increase is challenged at the First-tier Tribunal, landlords need to provide evidence supporting their proposed increase. To prepare for the hearing, landlords should gather documents that demonstrate the market rent value. This evidence may include recent tenancy agreements for similar properties nearby, independent rental valuations, and records of any improvements or repairs made to the property.
The Tribunal typically issues a decision within a few weeks of the hearing. Both parties must then comply with the Tribunal’s ruling, which legally sets the new rent until any future increase is proposed following the same process.
Paul Shamplina explains:
“We’re advising landlords to make sure they understand how to use Section 13 correctly. Once the Renters’ Rights Act comes in, it will be the only lawful way to increase rent. Get the date the increase comes into force wrong or fail to provide evidence of a fair market rent, and you risk the notice being challenged or invalidated.”
To avoid issues, make sure your tenancy agreement includes a clause allowing documents to be served correctly, and follow the Section 13 process precisely. Mistakes in serving the notice or omitting the required statutory information can render it invalid.
If you’re unsure, it’s wise to seek support from a legal specialist like Landlord Action, who are experienced in managing rent increase notices and tenant disputes. You should also be prepared to justify that the proposed rent reflects the current market rate in case the tenant challenges it.
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