Rent Setting
Market rates and increases
What Affects Rent Levels?
Setting the right rent involves balancing maximum return with finding quality tenants quickly:
- Location factors: Local amenities, transport links, schools, crime rates
- Property features: Size, condition, parking, outdoor space, energy efficiency
- Market conditions: Supply and demand in your area, seasonal variations
- Comparable properties: What similar properties are achieving
Changes from 1 May 2026
The Renters' Rights Act 2025 makes significant changes to rent increases:
- One increase per year maximum: You can only increase rent once in any 12-month period
- Section 13 process mandatory: All rent increases must use the formal Section 13 notice process with minimum 2 months' notice
- Tenant challenge rights: Tenants can challenge "above market" increases at the First-tier Tribunal
- No rent review clauses: Contractual rent review clauses are no longer valid
- Rental bidding banned: You cannot invite prospective tenants to bid above the advertised rent
The Risks of Overpricing
Setting rent too high can result in extended void periods (often more costly than slightly lower rent), attracting only desperate tenants who may default, and high turnover as tenants leave for better value - especially important when all tenancies are periodic.
Need Help With Rent Setting?
With rent increases limited to once yearly via Section 13, getting the initial rent right matters more than ever. We know the local market and set competitive rents that maximise returns. Get in touch to learn more.