Rent increases are one of the most contentious areas of UK tenancy law — and one of the most confusing. Some tenancy agreements include explicit rent review clauses allowing automatic increases. Others leave the process ambiguous. Understanding what your contract actually says about rent increases is essential before you sign a long-term tenancy.
What is a Rent Increase Clause?
A rent review or rent increase clause specifies when and how rent can be increased during the tenancy. For Assured Shorthold Tenancies (ASTs), rent is typically fixed for the initial term. After that, a landlord wishing to increase rent must follow a statutory process (Section 13 notice) or rely on a contractual rent review clause. Contractual clauses vary widely: some link increases to the Retail Price Index (RPI) or Consumer Price Index (CPI), others allow increases "to market rate", and some set a flat percentage increase annually.
Red flags to watch for
A clause allowing the landlord to increase rent to "market rate" at any time gives you no certainty and no protection against large, arbitrary hikes.
During high-inflation periods, uncapped CPI/RPI-linked increases can result in significant rent rises that you agreed to upfront without fully understanding.
You should have at least 1 month's notice of a rent increase (and in practice, 2 months is more common). Short notice clauses leave you unable to find alternative housing.
The main benefit of a fixed-term tenancy is rent certainty. A clause allowing increases during the fixed term undermines this entirely.
If you believe a rent increase is excessive, you have a right to challenge it through a First-tier Tribunal. A well-drafted tenancy will acknowledge this right; a landlord-friendly one may not.
Your legal rights
For ASTs, a landlord cannot increase rent during a fixed term unless the tenancy agreement specifically allows it. After the fixed term, they must use a Section 13 notice (at least one month for monthly tenancies) or agree a new rent with you. You have the right to challenge a proposed increase through a First-tier Tribunal (Property Chamber) if you believe it is above market rate. Under the Renters' Rights Act (coming into force 2025/26), additional protections are being introduced, including restrictions on above-inflation increases.
Questions to ask before you sign
- 1Can rent be increased during the fixed term? If so, how much and how often?
- 2Is there a formula, cap, or index for how increases are calculated?
- 3How much notice must the landlord give before increasing rent?
- 4Do I have the right to challenge an increase I believe is above market rate?
- 5What happens to my tenancy if I refuse to accept a rent increase?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.