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In this article, we hope to avoid some rent increase appeals and show a way to negotiate an agreed rent through a very specific workflow to comply with the new rent increase rules from 1 May.
Under the Renters' Rights Act 2025, expected to commence on 1 May 2026, there is a change to the procedure for increasing the rent for the new assured periodic tenancies.
One of the changes is to the appeals mechanism: if the tenant appeals, there is zero risk to them because the rent can never exceed what's in the notice, and the new rent won't take effect until the appeal is decided.
This article provides the best solution we can think of to make the rent increase process smooth and to hopefully avoid appeals. Thanks to David at Training for Professionals on their RRA course, where I heard about this workflow.
We won't go through all the information about increasing the rent or the appeals procedure. We've already covered that in detail here.
But, in summary, from 1 May:
In the rewritten rent increase rules, there is an express provision for allowing a lower rent to be agreed:
Section 13(4) Housing Act 1988 (shortened and highlights added by author):
(4) Where a notice is served ..., a new rent specified in the notice shall take effect as mentioned in the notice unless, before the beginning of the new period specified in the notice,—
(a) the tenant ... applies to the appropriate tribunal ...
(b) the landlord and the tenant agree on a new rent which is lower than that proposed in the notice or agree that the rent should not be varied.
In summary, section 13 allows:
An agreement for a lower rent after the notice has been served, but the agreement must be in place before the new rent takes effect.
To take advantage of this express procedure to agree on a lower rent, we propose the following workflow for increasing rents on Renters' Rights Act assured periodic tenancies from 1 May.
Start by working out two rents, the market rent and what you're happy to receive, especially if they're a great, long-standing tenant.
Check portals like OnTheMarket.com and Rightmove.com and find comparable properties as best you can, and decide on the new rent.
The higher rent you decide on should be the market rent, and, if an appeal occurs, it should be supported by evidence (although, typically, the tribunal will use its own market rent figures).
The lower rent you decide on is what you're happy with and willing to accept from the tenant based on your individual circumstances.
Important: In your initial contact, you must not attempt to negotiate or agree on any new rent. It will have no effect and will be contrary to section 13.
When serving the notice, don't include any cover letters or say anything (other than "enclosed is a section 13 notice - I'll be in touch in a few days about it" if you want).
Allow several days for delivery (depending on how the notice was served). Contact the tenant again through your usual channels.
Check they got the notice and explain, "because you've been such a great tenant, I'd like to offer a discount to the market rent suggested ...", now considering your lower rent.
Negotiate the best possible outcome for both parties.
If agreement is reached, confirm in writing. Ideally, the tenant will acknowledge, but paying the new rent from the new date will be sufficient acknowledgement of the agreement.
Important: the negotiations and agreement must be settled before the rent is scheduled to start, as stated in the notice. The new agreed rent must be lower than specified in the notice.
Under the new position from 1 May, a tenant can appeal the section 13 notice, and the market rent determined by the tribunal cannot exceed what was requested in the notice. Furthermore, the new rent doesn't become payable until the tribunal determines the appeal, which could take several months (and possibly longer than a year).
By following this workflow and offering a lower rent, the tenant now assumes some risk. If the tenant appeals, the tribunal may determine the market rent to be that specified in the notice, and negotiations during the period are irrelevant. The tribunal is simply asking what the current market rent for the property is. The tenant may end up paying more than what was being negotiated.
Furthermore, this polite negotiation may prevent the tenant from even considering an appeal and the whole thing is avoided. Especially if they feel they have got a good deal.
Subscribers can download the section 13 notice from the Other Forms part of the Tenancy Builder website (found in the sidebar) and select the section 13 notice. The notice will be updated to the new version from 1 May. Until then, you can continue using the current form under the current rules until 30 April.