How to Justify a Rent Increase

Why market evidence matters

Under the Renters' Rights Act 2024, landlords can only increase rent to market rent — the rent that a property would reasonably achieve if let on the open market. If a tenant disagrees with a proposed increase and refers it to the First-tier Tribunal, the tribunal determines what market rent is based on comparable evidence, not on what the landlord asserts.

A rent increase that is clearly supported by market evidence is far easier to defend if challenged. It also reduces the likelihood of a challenge in the first place: a tenant who can see that the proposed rent is consistent with comparable properties nearby has less basis for objection.

Step 1 — Establish what market rent is for your property

Market rent is determined by reference to comparable properties — similar homes in the same area that are currently or recently let on the open market. Relevant factors include:

• Number of bedrooms and overall floor area
• Property type (flat, terraced, semi-detached, detached)
• Location and proximity to transport links, schools, and amenities
• Condition and specification (furnished or unfurnished, parking, garden)
• Whether the property has been recently renovated or improved

The goal is to find properties that are genuinely comparable — not simply the most expensive properties available — and to establish a realistic range. A Rental Assessment from Rent Report does this automatically, pulling comparable listings, scoring transport and amenity proximity, and producing a calibrated lower, mid, and upper rent range for your specific property.

Step 2 — Set a figure within the market range

Once you know the market range, set your proposed rent at a level that the comparable evidence supports. A rent at or below the mid-point of the range is the most defensible position if challenged. A rent at the top of the range is harder to justify but not impossible if the property has specific attributes that command a premium.

Avoid setting a figure significantly above the upper end of the range without a clear, documented rationale. At tribunal, the tribunal will determine market rent from the comparable evidence independently — if your proposed rent is above what the evidence supports, the tribunal will set a lower figure, which may be lower than your current rent if your current rent is already above market.

Step 3 — Serve a valid Section 13 notice

To formally increase the rent on an assured tenancy, you must serve a valid Section 13 notice (Form 4A). Key requirements:

• Use the prescribed Form 4A — an informal letter is not sufficient
• Give the tenant at least two months' notice before the proposed effective date
• The proposed effective date must fall on the first day of a rental period
• You can only propose an increase — Form 4A cannot be used to reduce rent
• Rent can only be increased once in any 52-week period using this process

See our guide to the Section 13 notice for a full explanation of the requirements.

Step 4 — Be ready for a challenge

If the tenant refers the notice to the First-tier Tribunal, you will need to provide comparable evidence at the hearing. Preparing a documented evidence base before serving the notice means you are already prepared if a challenge is made.

For a tribunal hearing, a Tribunal Evidence Pack — a professionally reviewed report with expert sign-off — is more credible than an AI-only output. Having this in hand before the hearing puts you in a much stronger position.

For a transparent explanation of how Rent Report's comparable analysis is produced, see how Rent Report works →