Why new tenant protections could actually end up pushing landlords to hike rents

Landlords could hit tenants with bigger monthly price increases as they try to protect themselves against new rental laws, property experts have warned. The Renters’ Rights Act, which took effect from 1 May, brought in changes which mean landlords can generally increase rents only once a year, with tenants now having greater protection when challenging rises at a tribunal. Tenants have long been able to challenge a proposed increase at the First-tier Tribunal if they believe it is above the market rate – but previously ran the risk of the tribunal deciding the new rent should be even higher than what was proposed. Shorts But under the new rules, the tribunal can no longer set the rent higher than the amount the landlord originally suggested – only now being able to lower the proposed increase or keep it the same. In addition to this, a rent increase will generally not take effect while the case is being decided by the tribunal and is not backdated to the date the original increase was proposed, meaning tenants could pay their old rent for a prolonged period if the tribunal is experiencing a backlog. Experts say it could lead to landlords pricing “closer to market value from the outset”, instead of pricing rates for long-term tenants. Analysis by property data company LonRes found that, out of the 47 rent increase cases brought forward under the new rules, nine saw the tribunal value the market rent higher than the figure proposed by the landlord. However, in each case, the new rent was capped at the amount originally set out in the rent increase notice because of the new rules. For example, in one case in Manchester, the landlord proposed a new rent of £1,200 with the tribunal proposing that £1,300 would be a fair rent. Under the old rules, the landlord would have been able to increase the rent to £1,300, but new rules mean the rent was capped at the original £1,200 proposal – £100 a month below the tribunal’s own valuation. Experts say removing the risk of a tribunal imposing an even higher rent reduces the jeopardy for tenants and could inevitably encourage more of them to challenge increases. And they say landlords may respond by proposing larger rises in the first place, knowing that the figure they put forward acts as a ceiling for the tribunal and that a challenge could delay when the higher rent takes effect. Sim Sekhon, Group chief executive of professional services support firm, LegalforLandlords, said: “Instead of landlords informally keeping rents below market because they value a good tenant, more may decide they cannot afford to do that. They will review rents annually, evidence them properly and price closer to market value from the outset. “The market could become more professional and more evidence-led, but potentially less forgiving for tenants who have historically benefited from landlords taking a more informal approach to rent increases.” Lucian Cook, head of residential research at Savills estate agency, added: “Landlords are going to be especially keen to make sure that they get a market rent at the beginning of a new tenancy. That is not just because it will set an important benchmark when it comes to rent review on the property itself. It will also provide useful comparable evidence for any other properties they hold.” Sam Reynolds, chief executive of Zero Deposit, a scheme that allows renters to take on tenancies without a deposit, added that new rules “encourage landlords to set rents higher at the outset, giving themselves more protection against rising costs and changing market conditions later in the tenancy”. Tribunal activity has already risen in 2026, with the number of rent increase cases more than doubling in May compared to the same period last year but most of the cases concern rent notices given before the Act became law, meaning they are treated under the old rules. New analysis from Zoopla is predicting the cost of private rents to rise sharply. UK rents have risen by 2.6 per cent in the past year, but this figure is expected to reach 4-5 per cent by the end of the year. The rise was attributed to a drop in the number of homes for rent, with 3 per cent fewer homes available than a year ago. ‘Our budget is getting tighter’ Despite some of the criticisms of the new reforms, some renters have highlighted why they are important to them. Edith, 62, has rented all her life and moved to London 13 years ago from Switzerland. She is currently waiting for her rent case to be reviewed by a tribunal. When she first moved to the UK, Edith lived in south-east London, with her partner, and experienced moderate rent increases of no more than £50, until 2023 when the landlord upped the rent by £300. She said: “This was not affordable for us, so we had to move to Cambridgeshire, where we are now. We were hopeful that we had found a stable home that we could stay in long term, but what we didn’t know is that our rent would increase yearly by about 6 per cent.” In 2024, Edith’s rent went up by £50 per month and then £75 per month the year after that and the landlord has now issued a Section 13 notice to have the rent upped by another £75 per month, so she could be paying £1,300 a month soon, if the rent increase is accepted. Edith said: “The house is about 20 years old and has a severe problem with the roof. After a month of living there a small part of the ceiling came down which did get fixed. But every rain seasons the roof still leaks.” Edith is currently waiting for her case to be reviewed by a tribunal She added that if the tribunal doesn’t lower the proposed rent the couple will have to move as it will not be financially sustainable for them. “Our budget is getting tighter. Our wages and pensions are not going up as much as our rent is. The Renters Reform Act has helped us to be able to go to a tribunal without fear of being evicted and hopefully get a fair judgement,” Edith explained. Before the Act came in, some renters feared their landlords would hit them with revenge “no-fault” evictions if they challenged their rent. But now, no fault evictions are banned, and tenants can only be evicted for set reasons.