How to Increase Rent Legally in 2025

As professional estate agents in London, we understand how important it is for landlords to ensure their rental income reflects current market conditions—all while remaining fully compliant with the law.

If you’re considering raising the rent in 2025, understanding Section 13 of the Housing Act 1988 is essential.

This comprehensive guide explains how landlords can legally increase rent using Section 13,

step-by-step, with practical advice, key legal requirements, and frequently asked questions.

At London Estate Agency, we handle the entire process for our clients—from legal notices to tenant communication—ensuring everything is done correctly and efficiently.

What is Section 13 and Why It Matters in 2025?

Section 13 of the Housing Act 1988 provides a legal route for landlords to increase rent on periodic tenancies (typically month-to-month after a fixed term ends) without renewing the tenancy agreement.

Key Features of Section 13:

  • Applies only to periodic assured shorthold tenancies (ASTs)
  • Must follow proper notice procedures using Form 4
  • Rent can only be increased once every 12 months
  • Tenants have a right to challenge the proposed increase at a First-tier Tribunal

In 2025, with rent values rising across the UK, especially in London, it’s more crucial than ever for landlords to review rents regularly and get professional help to execute Section 13 properly.

When Can You Use Section 13 to Increase Rent?

You can serve a Section 13 notice when:

  • The fixed-term tenancy has ended, and the tenancy has become periodic
  • You haven’t increased rent in the last 12 months
  • You want to set the new rent in line with market value

You cannot use Section 13 during a fixed-term tenancy unless the agreement has a rent review clause.

In that case, the increase must be executed precisely as the contract states.

How to Serve a Section 13 Notice Correctly

Step 1: Complete Form 4

Section 13 requires landlords to serve Form 4 as a written notice to increase rent. This form must include:

  • Tenant’s name and address
  • Current rent and proposed new rent
  • The date the new rent will take effect
  • Signature of the landlord or agent

Step 2: Serve the Notice with Proper Timing

You must give the tenant at least one month’s notice before the proposed increase takes effect.

The notice period must match the rent interval if the rent is paid quarterly or annually.

Step 3: Ensure Market Rent Justification

The new rent must be reasonable and in line with current market rates.

At London Estate Agency, we conduct a comprehensive rent review and provide supporting market data to justify the increase.

What Happens if the Tenant Disputes the Rent Increase?

Tenants have the right to challenge the rent increase by applying to a First-tier Tribunal before the proposed new rent takes effect.

The Tribunal will assess:

  • Local market comparisons
  • Property condition and amenities
  • Evidence provided by both landlord and tenant

Pro tip: When landlords work with professional agencies like us, the risk of disputes is reduced significantly because we handle the valuation and communication with tenants professionally and transparently.

How Often Can You Increase Rent with Section 13?

Landlords can only use Section 13 once every 12 months for each tenancy. That’s why it’s essential to make each increase strategic and justified.

If you need frequent rent reviews, consider using shorter fixed terms with rent review clauses—we can draft tenancy agreements with tailored terms that allow better rent management over time.

Top Mistakes Landlords Make with Section 13 (And How to Avoid Them)

❌ Using the Wrong Form

Serving a rent increase notice on anything other than Form 4 invalidates the notice. We ensure every notice we serve is legally compliant.

❌ Serving During a Fixed Term

Landlords often try to increase rent during a fixed-term tenancy, which is not allowed under Section 13. We help assess whether a rent review clause can be used instead.

❌ Poor Market Data

Raising rent without proper valuation can lead to disputes. We provide detailed market analysis with every Section 13 notice.

❌ Inadequate Notice Period

The rent increase is invalidated if the correct notice period is not given. We track all tenancy dates and payment intervals to ensure 100% compliance.

Benefits of Using a Professional Estate Agency for Section 13

At London Estate Agency, we offer landlords a fully managed Section 13 service, which includes:

  • Rent Review & Market Analysis
  • Notice Preparation & Form 4 Service
  • Tenant Communication & Support
  • Dispute Resolution & Tribunal Support
  • Ongoing Rent Monitoring

Our in-house legal team ensures your rent increase is compliant and strategically positioned to maximize returns without risking tenant disputes.

FAQs About Section 13 Rent Increases

Can I increase rent during a fixed-term tenancy?

Unless your tenancy agreement has a rent review clause, you must wait until the fixed term ends and the tenancy becomes periodic.

What if the tenant refuses to pay the new rent?

If the tenant doesn’t apply to a tribunal but refuses to pay the new rent, you may need to pursue legal action or eviction, depending on the circumstances.

We help handle this process with minimal disruption.

Is there a rent cap in 2025?

There is no national rent cap in England, but rent increases must still be reasonable and justifiable.

In London, market trends vary borough-to-borough, and we offer hyper-local analysis.

Can tenants appeal every time I use Section 13?

Yes, but if your increase is reasonable and backed with market data, the Tribunal will unlikely reject it.

Most tenants will accept increases if they’re professionally presented.

Do I need a solicitor for Section 13?

Not necessarily, but working with a qualified estate agent with legal knowledge (like us) ensures the process is done correctly and efficiently, avoiding costly mistakes.

Let Us Handle Your Rent Increase with Full Legal Protection

Navigating the legal process of increasing rent can be overwhelming—but it doesn’t have to be.

At London Estate Agency, we take care of every aspect of the rent increase process through Section 13, ensuring compliance, profitability, and tenant satisfaction.

Whether you’re managing one property or a whole portfolio, our team provides expert support that gives you peace of mind and maximum income from your rental investments.

Need help increasing your tenant’s rent legally in 2025?

Visit londonestateagency.co.uk and speak to our experts today.

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