How Much Can a Landlord Increase Rent?
There is no legal cap on rent increases in England, but they must be fair and realistic — broadly in line with local market rates. Since the Renters Rights Act 2025, Section 13 (Form 4) is the only permitted method for increasing rent.
Landlords can increase rent once every 12 months, must give at least one month's notice, and tenants can challenge the increase at a First-tier Tribunal if they believe it exceeds market rates.
The Section 13 Rent Increase Process
- Check the market — Research comparable rents for similar properties in your area. Our calculator above uses ONS data to show you the local median.
- Complete Form 4 — The prescribed form for Section 13 rent increases. Available from gov.uk.
- Serve notice — Give at least one month's notice before the increase takes effect. Keep proof of service.
- Wait for response — The tenant has until the notice period ends to accept or refer to a tribunal.
- Tribunal (if challenged) — The tribunal assesses market rates and sets a fair rent. Their decision is binding.
What Is a Fair Rent Increase?
A "fair" increase is one that brings the rent in line with what similar properties in the area are achieving. Factors the tribunal considers include:
- • Comparable properties — Similar size, condition, and location. Rightmove, Zoopla, and ONS data are commonly cited.
- • Property condition — Improvements you've made can justify a higher rent. Disrepair works against you.
- • Local market trends — ONS data shows year-on-year rent changes by area. A 5% increase in an area where rents rose 8% is more defensible than vice versa.
How to Calculate Rental Yield
Rental yield measures how much income a property generates relative to its value. It's the most common metric for evaluating buy-to-let investment performance.
Gross rental yield
(Annual rent ÷ Property value) × 100
Net rental yield
((Annual rent − Expenses) ÷ Property value) × 100
A gross yield of 4-6% is typical across England. Northern cities (Sunderland, Burnley, Hartlepool) often achieve 7%+, while London and the South East typically yield 3-4% due to higher property prices relative to rent.
Expenses That Reduce Your Net Yield
- • Landlord insurance — £200-400/year
- • Maintenance — Budget 1-2% of property value annually
- • Letting agent fees — 8-15% of rent if using an agent
- • Void periods — Typically 1 month/year (8% of rent)
- • Compliance — Gas safety, EICR, EPC certificates