An evidence-led guide for reviewing rents

Rent reviews are a crucial part of the letting process to maximise rental income and provide greater certainty to tenants on when and how their rent might rise. However, the importance of fair and justified rent reviews increases dramatically with the introduction of new responsibilities under the Renters’ Rights Act later this year.  

What rent increase changes are coming  

From May 1, an evidence-led process will become crucial when setting rents in England. Rental bidding, where would-be tenants offer more than the original asking rent, will be banned. Instead, landlords and agents will have to publish an asking rent based on local market conditions. It will be illegal to solicit or accept offers above this rate.  

Tenants will also be able to more effectively challenge what they believe to be unfair rent increases, which the government hopes will prevent unscrupulous landlords from using such increases to force tenants out of their homes.  

Instead, tenants will be able to challenge rents at a first-tier tribunal, who will determine what the rent should be. Tenants will no longer face the risk of such tribunals increasing the rent beyond that proposed by the landlord or backdating rent increases.  

Rent review clauses within tenancy agreements will also be banned, with a standard process for increasing rents introduced instead.  

Gathering evidence to set rents  

Gathering evidence to support your rent review should be a combination of understanding local rents, supply and demand and appreciating the unique benefits that your property may offer.  

Understanding local rents  

Local market research will help you understand what your competitors are charging and what other properties your prospective tenants might be interested in. Survey recent local listings for properties of a similar size, age and condition and speak to local agencies to understand what’s on offer at what price.  

Property portals such as Rightmove and Zoopla will also be a good source of data. You should aim for three to five comparables from the last three to six months. 

Assessing supply and demand in your area 

In many areas, rental supply continues to be outpaced by demand which then impacts rental levels. Although rental prices continue to increase across the board, by how much varies significantly by area. 

In England, for example, private rent annual inflation was highest in the north-east (8.4%) and lowest in London (2.8%), where supply and demand are more balanced, in the 12 months to November 2025, according to the latest private rent index from the ONS. 

Proving unique benefits  

Your property may also benefit from other advantages over competitive properties, such as being particularly close to a local primary school and therefore suitable for new parents or close to a commuter links for those who need easy access to travel. Capital improvements to your property, such as a new kitchen or bathroom, or increased energy efficiency, could also set your property apart from competitors. 

Following the process  

Once you have your evidence in place you must remember to follow the new legal processes under the Renters’ Rights Act from May. Rent increases must be through a Section 13 notice and take place no more than once every 12 months.

 

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