There is no fixed cap or maximum percentage on a rent increase in England. The legal ceiling is the open market rent, the figure the property would let for if newly advertised, and if the tenant refers the notice, the First-tier Tribunal decides the rent and cannot set it higher than the landlord proposed.

There is no fixed cap on how much a landlord can increase rent in England. The Renters' Rights Act 2025 sets no maximum percentage and ties nothing to inflation. What it sets instead is a benchmark, the open market rent, and a process that tests any figure a tenant thinks is above it.[1][3] This article covers the amount; for the process end to end, see the complete guide to rent reviews under the Act.

Is there a cap on how much rent can rise in England?

No. Government guidance on the Act states that landlords can increase rents "once per year to the market rate", which it defines as "the price that would be achieved if the property was newly advertised to let".[1] There is no percentage ceiling in the legislation and no link to any index.[2][3]

So the honest answer to a landlord asking "how much can I put the rent up?" is not a number. It is a benchmark: whatever the property would let for on the open market today, supported by evidence you are prepared to show a tribunal.

What limits a rent increase instead of a cap?

Process. Since 1 May 2026 every increase on a private assured tenancy in England runs through a Section 13 notice on prescribed Form 4A, and the statute polices the timing rather than the amount:[2]

  • Rent can rise no more than once every 52 weeks, and never within the tenancy's first 52 weeks. In some years the gap is 53 weeks: if 52 weeks would land more than six days before the anniversary of the reference date on the notice, the increase must wait an extra week. This anti-drift rule stops review dates creeping earlier each cycle.
  • The notice must give at least two months before the new rent starts.
  • The new rent must start on the first day of a rent period.
  • The tenant can refer the figure to the First-tier Tribunal before it takes effect.

Once a notice has been served, landlord and tenant can agree in writing to vary what it proposed: a rent lower than the figure on the notice, no change at all, or a later start date, never a higher figure. The agreement has to be recorded in writing, or the rent on the notice takes effect regardless.[2] The timing rules are covered in How often can a landlord increase rent? and How much notice must a landlord give?

Can the tribunal set a higher rent than the landlord proposed?

No, and this is the piece of the regime that shapes what you should propose. If the tenant refers the notice, the application must reach the tribunal before the new rent's start date and costs £47.[5] The tribunal then determines the open market rent, and the rule inserted by the Renters' Rights Act is explicit: the new rent is the open market rent if that is lower than the proposed rent, and otherwise the proposed rent. The tribunal cannot go above the figure on the notice.[4]

The decision is never backdated either. The old rent stays payable until the determination, and the tribunal can defer the increase by up to two months for undue hardship.[4] Under the previous rules a tribunal could set the rent above the landlord's figure, which gave tenants a reason to hesitate before challenging. That risk is gone, so a tenant faced with an ambitious number has little to lose by referring it, and every week of delay is rent your landlord never recovers. The full sequence is in What happens if a tenant challenges a rent increase at tribunal?

Do the ONS rent figures cap an increase?

No. The ONS Price Index of Private Rents (PIPR) is context, not a limit. In the 12 months to July 2026, average private rent in England rose 3.8% to £1,451 a month (ONS, August 2026 release).[6] That is an average across each local authority's whole rented stock, sitting tenants included, so it describes how the local market has drifted, not what any one property is worth.[7]

A specific property can justifiably rise by more than the average, for example where the rent was last reviewed years ago, or by less, where the local market has cooled. Treat PIPR as the movement since the rent was last set and let property-level evidence carry the figure itself. Our PIPR explainer covers what the index can and cannot see, and the Free Rent Indexation Tool turns published ONS data into an indexed reference point for a property.

How much should you actually propose?

The figure you can defend. Since no cap exists, the practical question is what evidence supports: government guidance points challenging tenants to "evidence from similar nearby properties (similar size, features and location)" showing what they actually let for, and notes that achieved lettings carry more weight than advertised listings.[5] Your proposal will be judged against that standard, so build it from the same material.

Three inputs do most of the work: recent comparable lettings, index context in proportion, and the property's own condition and history. Form 4A itself tells tenants the tribunal can consider factors like the condition of the property.[8] Keep a record of which comparables you relied on and why, because if the notice is referred, that record is the case you produce. What evidence supports a rent increase? works through each layer.

Does any of this apply outside England?

No. Everything above is England only. Wales and Scotland run separate regimes with their own rules on frequency, notice, and challenge, so a figure that is defensible in England is not automatically lawful elsewhere. The differences are mapped in rent increase rules in England, Wales and Scotland. MarketRent covers England.

For letting agents the takeaway is simple: the amount is uncapped but tested. MarketRent builds the evidence pack behind each proposed figure, with comparables, PIPR indexation, and EPC data, then generates the Form 4A notice and documents the review from proposal to outcome. For a data-backed starting point before you propose, try the Free Rent Indexation Tool.

This article is general information for letting agents in England, not legal advice.

Sources

  1. MHCLG, Guide to the Renters' Rights Act
  2. Housing Act 1988, section 13 (increases of rent under assured tenancies), as amended
  3. Housing Act 1988, section 14 (determination of rent by tribunal), as amended
  4. Renters' Rights Act 2025, section 7 (challenging amount or increase of rent)
  5. GOV.UK, Apply for an open market rent determination
  6. ONS, Private rent and house prices, UK: August 2026 (data to July 2026)
  7. ONS, Price Index of Private Rents QMI (quality and methodology information)
  8. Form 4A, landlord's notice proposing a new rent (GOV.UK, version 05.26)