With the Renters' Rights Act now in force, Section 13 notices are the only lawful way for landlords in England to increase the rent on an assured tenancy.
As fixed-term assured shorthold tenancies have been replaced by periodic assured tenancies, landlords must now follow the statutory Section 13 process when proposing a rent increase. This guide explains when to use a Section 13 notice, how to serve it correctly, and why getting it wrong could lead to delays, disputes and an invalid notice.
A Section 13 notice is a formal document used to inform tenants of a proposed rent increase under a periodic assured tenancy in England. It forms part of the Housing Act 1988 and continues to apply under the Renters' Rights Act, with all assured tenancies now operating on a periodic basis.
Landlords can increase rent once per year to a fair market rate - that’s the rent amount that would be achieved if the property was newly advertised to let at a fair market price compared to similar properties in the area - using a Section 13 notice (FORM 4 - Landlord’s Notice proposing a new rent under an Assured Periodic Tenancy of premises situated in England). This must include the proposed rent and provide tenants with at least two months’ notice before it takes effect.
No. Under the Renters' Rights Act, landlords must use the statutory Section 13 process for all rent increases. Rent review clauses and other contractual mechanisms can no longer be used to increase rent.
With the Renters' Rights Act now in force, assured shorthold tenancies have been replaced by periodic assured tenancies as the standard tenancy in England. As landlords can now only increase the rent by serving a valid Section 13 notice, carrying out regular rent reviews has become more important than ever.
In the past, many landlords chose not to increase the rent while tenants remained in a fixed-term tenancy, preferring to wait until renewal or to avoid unsettling a reliable tenant for a modest increase. Over time, this often resulted in rents falling well below the local market rate.
Under the new tenancy system, allowing rents to drift too far below market value can create difficulties for both landlords and tenants. Larger increases are more likely to affect affordability and may be challenged by tenants through the First-tier Tribunal. Reviewing rents annually and making measured, evidence-based increases helps keep rents aligned with the local market while reducing the likelihood of disputes.
Under the new system, tenants will have increased protection to challenge any rent increase they believe is unreasonable, without the risk of ending up in a worse financial position. That’s why landlords need robust evidence that their proposed rent reflects the market rate.
A written valuation from a reputable local letting agent can be valuable evidence. Even if there’s a small fee involved, it’s often worth the peace of mind it brings.
With all tenancies becoming periodic under the Renters’ Rights Act, it’s essential to update tenancy agreements accordingly. The new standard tenancy agreement will be revised to reflect these legal changes and should include a clear clause on how notices can be served.
The tenancy agreement should include a ‘document service’ clause, which if needed the court will use to decide whether the notice has been correctly served according to the clause. If it is missing from the tenancy agreement, the party serving the document will need to find another way of proving that the recipient was aware of it. This is not easy to do so it’s important to include it in the tenancy agreement.
Each named tenant on the agreement must receive an individual copy of the notice. Include the full statutory notice, all required guidance notes, and a clear covering letter explaining the purpose.
Where, for example, a Section 13 notice is being served, each tenant should be noted on the form (Form 4) and a copy of the form and a letter explaining what the form is for should be addressed and delivered to each tenant. This action prevents any one tenant from claiming that they did not receive a notice, which could stymie any eviction process.
Digital service is becoming more widely accepted and is often more practical than recorded delivery, which can be delayed if tenants refuse to sign for letters. A combination of first-class post (with proof of postage) and digital follow-up via email or text is a sensible, belt-and-braces approach. Always request confirmation of receipt.
Once the notice is served, there’s nothing more for the landlord to do unless the tenant challenges the notice. If the tenant agrees, they simply begin paying the new rent from the next due date.
Form 4 (Landlord’s Notice proposing a new rent under an Assured Periodic Tenancy of premises situated in England) is available on the Government’s website, along with other tenancy-related forms. Always make sure you’re using the most up-to-date version.
Be meticulous when completing Form 4 of a Section 13 notice. Even small mistakes – such as incorrect dates or missing information – can invalidate the notice and delay the rent increase.
Paul Shamplina adds:
“It’s surprising how many rent increases fail simply because the notice wasn’t served properly. We regularly help landlords at Landlord Action who come to us after the tenant disputes the increase – and a mistake on the form or a missed deadline can mean starting the whole process again.”
See LandlordZONE’s article on the importance of serving statutory notices and other documents correctly for more insight.
Yes, tenants have a right of appeal to the First-tier Property Tribunal at little or no cost to themselves if they think the rent increase is above market rate. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so.
The tenant will need to complete a form found on GOV.UK or by contacting a regional rent assessment panel. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are applying to challenge the rent increase.
The tribunal will review the tenant’s application and may decide to proceed with a hearing (oral hearing) or decide based on the tenant’s application alone (paper decision).
Both tenants and landlords can request an oral hearing even if the tribunal initially indicates a paper decision. Landlords must be prepared to provide evidence showing that the proposed rent is in line with comparable local properties.
The Renters' Rights Act introduced important changes to the First-tier Tribunal process. Crucially, the Tribunal will no longer be able to increase the rent above the landlord’s proposed amount, and any increase will apply from the Tribunal’s decision date – not backdated.
In cases of genuine financial hardship, the Tribunal will also have the power to delay the increase by up to two months.
Now that the Renters' Rights Act is in force, landlords can only raise rents once per year using a Section 13 notice.
Make sure your tenancy agreement includes a ‘documents serving’ clause and follow the Section 13 process carefully. Any mistakes your make in serving the notice could invalidate it, so take extra care and make sure you serve the accompanying statutory information. If in any doubt, use a professional legal specialist such as Landlord Action, who have a team of experienced lawyers and paralegals.
It is vital that you have the evidence needed to show that you are proposing a market rate, should your tenant appeal the increase.
Paul Shamplina concludes:
“This is a technical area of law where small errors can have big consequences. If you’re unsure about how to serve a Section 13 notice or need help responding to a tenant dispute, speak to professionals like our team at Landlord Action. It’s better to get it right the first time.”
