73% of Landlords to Hike Rents: How to Do It Lawfully

Almost three in four landlords say they will put the rent up at the first chance they get, after the Budget on 28 October 2026 added another two percentage points to the tax on rental income from April 2027. That is the headline from a snap poll of 168 National Residential Landlords Association (NRLA) members carried out by research firm Pegasus Insight and published this week.

For landlords in England there is a catch. Since 1 May 2026, the Renters’ Rights Act regime means there is only one lawful way to raise the rent on a private tenancy: a section 13 notice on Form 4A, no more than once a year, with at least two months’ notice. Get the dates wrong and the increase is invalid.

This guide covers what the poll found, how the tax change fits in, and exactly how to serve a rent increase that will stand up. Use our planner to work out the earliest date your new rent can start.

What the landlord poll found

Pegasus Insight asked NRLA members how they would react to rental income tax rates of 24%, 44% and 49% from April 2027, the combined effect of last year’s Budget and this one. The poll was taken just after the Budget.

Most respondents (73%) said they expect to raise rents when they are next permitted to. The single biggest group, 38% of all respondents, chose a rise of 5% to 10% or to market rent, whichever is higher.

The poll also asked about selling and spending. These are the full verified results:

Treat these numbers with care. It is a small snap poll of one landlord body’s members, recording gut reactions rather than decisions. Pegasus Insight director Mark Long said himself: “These are immediate reactions, and intentions to raise rents or sell will not all become reality.”

The tax change behind it

The November 2025 Budget had already set separate property income tax rates of 22%, 42% and 47% from 6 April 2027. The Treasury’s Budget 2026 announcement says rates on savings and property income “will rise by a further two percentage points across all bands” from April 2027.

HMRC’s policy paper, published on 29 October 2026, confirms property income rates of 24% basic, 44% higher and 49% additional from 6 April 2027. It affects individuals and partnerships letting property, plus trustees and personal representatives. Companies are not among those listed as affected.

The new property rates apply to individuals in England, Wales and Northern Ireland. Scotland and Wales can set their own property income rates under their fiscal frameworks, so landlords there should watch for decisions from Holyrood and the Senedd. This is announced policy, not yet in force: it starts with the 2027-28 tax year. We covered how much rent it takes to cover the extra tax in our 5 November piece, so here we focus on the mechanics of putting the rent up.

The rent increase rules in England now

The Renters’ Rights Act changes came into effect on 1 May 2026 and apply in England. Private tenancies are now periodic, and rent rises run through section 13 of the Housing Act 1988, as amended. Here is what the law and government guidance say.

Old-style Form 4 notices served before 1 May 2026 still take effect on the date and at the rent they stated. Either way, the clock for your next rise runs from when that increase took effect. Government guidance gives the example of an increase from 1 February 2026: the next one cannot start before 1 February 2027.

When can your new rent start? Planner and examples

Your new rent can start on the latest of three dates: two months after you serve the notice, one year after the last increase (or tenancy start), and the next rent due date after those. Enter your figures below.

Example 1: you are ready now. Your tenant pays £1,200 on the 1st of each month and the last rise took effect on 1 February 2026. You serve Form 4A on 12 November 2026 proposing £1,272, a 6% rise. Two months’ notice takes you to 12 January 2027, but the one-year rule means the earliest start is 1 February 2027. That brings in an extra £72 a month, or £864 a year.

Example 2: you left it late. Same tenancy, but you serve on 15 December 2026. Two months takes you to 15 February 2027, so the rise cannot start until the next rent day, 1 March 2027. Missing February costs you that month’s £72 uplift. To start on the anniversary you needed to serve by 1 December 2026.

Example 3: the poll’s most common answer. On a £1,200 rent, a 5% to 10% rise means a new rent of £1,260 to £1,320, or £720 to £1,440 more a year. If comparable homes nearby let for £1,280, the top of that range is above market and open to challenge.

If your tenant challenges the rise

A tenant who thinks your proposed rent is above the open market rent can apply to the First-tier Tribunal. Under section 13(4) they must apply before the new rent is due to start. Open market rent means what you would expect to get by reletting the property on the open market.

Under new section 14ZB of the Housing Act 1988, in force since 1 May 2026, the tribunal’s figure becomes the rent only if it is lower than you proposed. Otherwise your proposed rent stands. It cannot award you more than you asked for.

Timing matters too. If the tribunal decides after your proposed start date, the new rent runs from the first rental period on or after the decision, not backdated. If paying from that date would cause the tenant undue hardship, the tribunal can delay it, but by no more than two months from the decision.

New tenants also have a separate right to challenge the starting rent within the first six months of the tenancy, under section 14(A1).

What to do now: step by step

1. Find your anchor date. Check when the last rise took effect, or when the tenancy started if there has been none.
2. Check the market. Collect three to five comparable lets nearby (same size, condition, area) and save screenshots with dates.
3. Talk to your tenant. Government guidance tells you to discuss the rise first. A tenant who understands it is less likely to challenge.
4. Complete Form 4A. Download the current version from GOV.UK, fill in every part and do not alter the wording.
5. Pick the start date. It must be a rent due date, at least two months after service and at least a year after the last increase.
6. Serve it properly. By hand, post or email (only if the tenancy agreement allows email). Keep proof of service.
7. Diarise the next one. Note the anniversary and the date two months before it.

• Anchor date confirmed (last rise or tenancy start)
• Comparable rents saved as evidence
• Proposed rent at or below market
• Current Form 4A used, wording unchanged
• Start date is a rent due date
• At least 2 months between service and start date
• At least a year since the last increase took effect
• Email service allowed by the tenancy agreement (if used)
• Proof of service kept
• No reliance on a rent review clause

Wales and Scotland are different

The section 13 process above applies to England. In Wales, under the Renting Homes (Wales) Act 2016, the Welsh Government says landlords must give two months’ notice of a rent variation, which may be issued annually.

In Scotland, private residential tenancy rents can rise once in a 12-month period with at least three months’ written notice on the correct form. Tenants have 21 days to refer the increase to a rent officer, who can set a figure higher or lower than proposed.

On tax, Scotland is outside the new property income rates for now, and both Holyrood and the Senedd have powers to set their own property rates.

FAQs

How much notice do I need to give to increase rent in England?

At least two months, using Form 4A. The new rent must also start at the beginning of a rental period and at least a year after the last increase.

Can I put the rent up if my tenant agrees?

Yes, but you still have to serve Form 4A. Government guidance says the section 13 process must be followed every time, even when the tenant has already agreed.

Is my rent review clause still valid?

No. Since 1 May 2026, any term that lets rent rise other than by a section 13 notice or tribunal decision has no effect in England.

Can the tribunal increase the rent above what I asked for?

No. The tribunal decides the open market rent. Your tenant pays that figure only if it is lower than your proposal; otherwise your proposed rent applies.

What are the landlord income tax rates from April 2027?

For property income of individuals in England, Wales and Northern Ireland: 24% basic, 44% higher and 49% additional rate, from 6 April 2027.