THE PROPERTY FILTER TAKE
Rent increases for sitting tenants fell by 23% in May 2026, the first full month after the Renters' Rights Act came into force in England and Wales, according to Hamptons data.
Landlords can now raise rents only once per year via a Section 13 notice - meaning increases, when they do happen, may be larger to bridge the gap to market rate.
With the annual rent review cycle now embedded in law, you may wish to review each tenancy's current rent against local market rates and consult your letting agent before the next Section 13 notice window opens.
The Renters' Rights Act (RRA) came into force on 1 May 2026 in England and Wales. Here is what the first full month of data tells landlords.
What Changed on 1 May
The RRA abolished Section 21 no-fault evictions and converted most existing assured shorthold tenancies into periodic, or rolling, arrangements. Alongside that, rent increases for sitting tenants are now capped at once per year, enforced through a statutory Section 13 notice. Landlords must give two months' written notice and can only raise rent to the prevailing market rate.
Scotland has operated under a similar periodic tenancy system since 2017. The pattern there is instructive: fewer increases overall, but larger ones each time, as the gap between the tenant's current rent and the local market rate builds up between cycles.
The Renters' Rights Act applies in England and Wales only. Scotland and Northern Ireland have separate legislation.
Fewer Increases, But Not Smaller Ones
New data from Hamptons, published on 15 June 2026, shows the number of sitting tenants receiving a rent increase in May was 23% lower than in May 2025. If that rate holds across the rest of the year, 31% of sitting tenants will see their rent rise in 2026, down from 40% in the previous 12 months.
There is an important caveat. Among tenants who did receive an increase in May, the average annual rise was 5.4%, according to Hamptons. That is broadly unchanged from April and only slightly below the 5.5% recorded in May 2025. Frequency is falling; the size of individual increases is not.
Hamptons also found little evidence that landlords rushed to raise rents before the Act took effect. Analysis of Connells data shows rent increases between January and April 2026 were only 3% lower than in the same period of 2024 - no meaningful front-loading.
For landlords managing buy-to-let (BTL) portfolios, the practical question is how to plan within a once-per-year cycle. You can use the Property Filter stress test calculator to model the yield impact of a delayed increase against current borrowing costs.
What the Section 13 Process Requires
In practice this means: serve a Section 13 notice, give two months' written notice, and set the new rent at the open market rate for comparable properties. You cannot issue a second increase within 12 months of the last one taking effect.
The deadline for compliance is immediate - the rules applied from 1 May 2026. Landlords who issue a rent increase without following the Section 13 process risk having it set aside. Tenants can also challenge an increase at the First-tier Tribunal if they believe it exceeds market rate.
For a full breakdown of the new tenancy framework and what landlords must keep on file, the Property Filter free resources hub covers the compliance obligations introduced under the Act.
Understanding how the once-per-year cycle interacts with your mortgage arrangement matters too. If you are on a tracker or approaching a remortgage, the negotiation and finance guide sets out how to stress-test your position against likely rent review windows.
Key Takeaways
- The Renters' Rights Act came into force on 1 May 2026 in England and Wales, abolishing Section 21 and restricting rent increases to once per year via Section 13 notice. - Rent increases for sitting tenants dropped 23% in May 2026 compared with May 2025, according to Hamptons. - On current data, 31% of sitting tenants are projected to receive an increase in 2026, down from 40% the prior year. - Where increases did occur, the average rise was 5.4% - the size of increases has not fallen, only the frequency. - Landlords saw no regulatory benefit from front-loading increases before May: Hamptons found only a 3% difference in increase volumes versus the same period in 2024.
The Renters' Rights Act (RRA) came into force on 1 May 2026 in England and Wales. Here is what the first full month of data tells landlords.
What Changed on 1 May
The RRA abolished Section 21 no-fault evictions and converted most existing assured shorthold tenancies into periodic, or rolling, arrangements. Alongside that, rent increases for sitting tenants are now capped at once per year, enforced through a statutory Section 13 notice. Landlords must give two months' written notice and can only raise rent to the prevailing market rate.
Scotland has operated under a similar periodic tenancy system since 2017. The pattern there is instructive: fewer increases overall, but larger ones each time, as the gap between the tenant's current rent and the local market rate builds up between cycles.
The Renters' Rights Act applies in England and Wales only. Scotland and Northern Ireland have separate legislation.
Fewer Increases, But Not Smaller Ones
New data from Hamptons, published on 15 June 2026, shows the number of sitting tenants receiving a rent increase in May was 23% lower than in May 2025. If that rate holds across the rest of the year, 31% of sitting tenants will see their rent rise in 2026, down from 40% in the previous 12 months.
There is an important caveat. Among tenants who did receive an increase in May, the average annual rise was 5.4%, according to Hamptons. That is broadly unchanged from April and only slightly below the 5.5% recorded in May 2025. Frequency is falling; the size of individual increases is not.
Hamptons also found little evidence that landlords rushed to raise rents before the Act took effect. Analysis of Connells data shows rent increases between January and April 2026 were only 3% lower than in the same period of 2024 - no meaningful front-loading.
For landlords managing buy-to-let (BTL) portfolios, the practical question is how to plan within a once-per-year cycle. You can use the Property Filter stress test calculator to model the yield impact of a delayed increase against current borrowing costs.
What the Section 13 Process Requires
In practice this means: serve a Section 13 notice, give two months' written notice, and set the new rent at the open market rate for comparable properties. You cannot issue a second increase within 12 months of the last one taking effect.
The deadline for compliance is immediate - the rules applied from 1 May 2026. Landlords who issue a rent increase without following the Section 13 process risk having it set aside. Tenants can also challenge an increase at the First-tier Tribunal if they believe it exceeds market rate.
For a full breakdown of the new tenancy framework and what landlords must keep on file, the Property Filter free resources hub covers the compliance obligations introduced under the Act.
Understanding how the once-per-year cycle interacts with your mortgage arrangement matters too. If you are on a tracker or approaching a remortgage, the negotiation and finance guide sets out how to stress-test your position against likely rent review windows.
Key Takeaways
- The Renters' Rights Act came into force on 1 May 2026 in England and Wales, abolishing Section 21 and restricting rent increases to once per year via Section 13 notice. - Rent increases for sitting tenants dropped 23% in May 2026 compared with May 2025, according to Hamptons. - On current data, 31% of sitting tenants are projected to receive an increase in 2026, down from 40% the prior year. - Where increases did occur, the average rise was 5.4% - the size of increases has not fallen, only the frequency. - Landlords saw no regulatory benefit from front-loading increases before May: Hamptons found only a 3% difference in increase volumes versus the same period in 2024.
Frequently asked questions
Frequently asked questions
Does the once-per-year rule apply to new tenancies as well as existing ones?
What happens if a tenant disputes the new rent?
Can a landlord include a rent review clause in a new tenancy agreement to override Section 13?
Does the Renters' Rights Act apply in Scotland?
Is there a penalty for raising rent without serving a valid Section 13 notice?
