Since the Renters' Rights Act 2025 came into force on 1 May 2026, the landscape for rent increases in assured tenancies has changed dramatically. The old tools, including section 21 notices and contractual rent review clauses, are gone. The only lawful route to a rent increase is now the statutory section 13 process using Form 4A.

And when tenants disagree, they can challenge proposed increases at the First-tier Tribunal (FtT) for only £47. As the FtT cannot set the rent higher than the new rate proposed by the landlord, the tenant has nothing to lose.

It is still early days. The first wave of FtT decisions has only been coming through since late June 2026, however the patterns emerging so far are already providing valuable insights for landlords, intuitional investors and operators in the Living sector. Here is what we are seeing.

Challenges are increasing

The numbers tell the story. In July 2026 alone, the FtT made 166 market rent decisions, nearly four times the 44 decisions in July 2025. The monthly average before the Renters Rights Act was introduced was 42 decisions. By May that had risen to 109, and by June, 129.

The £47 fee is low. The tribunal cannot raise the rent above the landlord's proposal. And while the challenge is being decided, the tenant continues paying the old rent because the increase is not backdated. For many tenants, bringing a challenge is simply a rational choice.

The lesson is to treat every rent increase as a potential tribunal case. Budget accordingly and prepare your evidence from the outset.

Decisions are coming faster than expected

Despite the volume, turnaround times have been improving.

Wait times have fallen from between five and six months in early 2026 to around three months in August, helped by the Government's recruitment of new judges and tribunal members. Some decisions have been made in as little as four to six weeks.

This may sound positive, but even a short delay has a real cost. The old rent continues to apply until the decision is made, and, across a large portfolio, multiple concurrent challenges can create a significant revenue gap.

Getting the notice right is non-negotiable

Procedural errors have proved fatal in some early cases.

The most common mistake? Failing to give the statutory minimum two months' notice. Get this wrong and the notice is invalid.

Early indications suggest the FtT will look closely at when the notice was actually served, not just when it was dated. A valid section 13 notice must give at least two months' notice, must not increase the rent within 52 weeks of the last increase, and must be on the correct prescribed form with accurate tenant details.

The tribunal has shown some flexibility on minor errors such as incorrect ancillary details, but landlords would be unwise to rely on such flexibility. Compliance checks and proof of service for every notice are essential.

Your evidence makes or breaks your case

This clearest message from the early decisions: the FtT strongly prefers evidence of rents actually achieved on completed lettings over advertised or asking rents from property portals.

Government guidance says the same - agreed lettings evidence carries more weight than listing websites. Yet early data suggests that very few landlords are providing properly evidenced achieved-rent data. A significant proportion have provided no rent evidence at all.

Location specificity matters too. Comparables from a different local market area, or from a neighbourhood the tribunal considers "superior", have been given limited weight.

Institutional landlords with portfolio lettings data have a significant evidential advantage here. Named comparable properties with confirmed rents and dates will carry far more weight than generic market assertions. Success is more likely to turn on preparation than advocacy.

Property condition matters more than you think

A number of early decisions have reduced the market rent assessment because of the property's condition. Issues raised have ranged from EPC ratings to the condition of carpets and the age of white goods.

Where tenants have raised specific, evidenced disrepair, they have achieved meaningful deductions. Where the allegations were unevidenced, the tribunal has made no deduction.

The RICS has noted that property managers may need evidence of good order to avoid condition-based discounts and recommends time-stamped inspection reports and ongoing communications with tenants.

It is therefore essential for landlords to maintain properties and keep records to prove it. Inspection reports, maintenance logs and photographs can make the difference between the full proposed rent and a significant reduction.

It is all on paper

Decisions so far have been made on the papers alone without in-person hearings or inspections. The written evidence submitted is critical.

This means the FtT submission should be treated with the same rigour as formal litigation evidence. Property photographs, floor plans and clearly referenced comparable lettings data all matter.

What is coming next

In September 2026, the Government announced that HMRC's Valuation Office Agency will take over responsibility for initial rent increase determinations from the FtT. No commencement date has been set, as the transfer will require legislation and detailed implementation planning. Until then, the tribunal continues to determine challenges.

The substantive test — open market rent — is not expected to change. But there will be new procedural requirements to navigate when the transfer happens. We are monitoring this closely and will keep clients updated.

What you should be doing now

These are early trends rather than settled law. FtT decisions are fact-specific and do not create binding precedent. Nevertheless, the growing body of decisions provides a useful indication of the direction of travel, and the emerging themes are already clear enough to inform decision-making.

For institutional landlords and investors in the Living sector, the practical priorities are:

  • Build your evidence base. Maintain records of all achieved rents across your portfolio - dated, evidenced, broken down by property type and location. This is your single most valuable asset in any tribunal challenge.
  • Price increases carefully. Setting the proposed rent at or slightly below demonstrable market evidence creates the strongest position.
  • Automate your compliance. Make sure your systems verify the two-month notice period, the 52-week interval, the correct form, and accurate tenant details before service.
  • Maintain and document property condition. Time-stamped inspection reports and maintenance logs can prevent or rebut condition-based discounts.
  • Treat every tribunal submission as evidence. Include specific, named comparable lettings with dates and rents, property photographs, floor plans, and a reasoned justification.
  • Factor in the cost of delay. Budget for the revenue gap caused by any challenge - one to three months of foregone increase at current turnaround times.

How we can help

The new rent increase regime is still bedding in and the landscape continues to evolve. Getting it right means having the right evidence, the right processes, and the right advice from the start.

Our Real Estate team is advising institutional landlords and Living sector operators on how to navigate these changes, from compliance frameworks and evidence strategies to tribunal submissions and portfolio-wide risk management.

If you would like to discuss what these developments mean for your portfolio, get in touch with our Living team today.