Rent increases and arrears under the Renters' Rights Act

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Since 1 May 2026, rent on a private tenancy in England can rise only by section 13 notice, at most once a year, with at least two months' notice, and only to the open market rent if the tenant challenges it. Arrears are handled through the grounds for possession: the mandatory ground now needs three months' rent owed, so early contact and a payment plan matter more than ever.

This guide covers the rules at the time of writing from GOV.UK and BCP Council. It is general information and not legal, tax or financial advice. Before you serve a possession notice, speak to a solicitor.

Raising the rent: the section 13 procedure

Under the Renters' Rights Act every private assured tenancy is periodic, and the only way to increase the rent is the statutory procedure:

1. Use the prescribed form. Form 4A, the landlord's notice proposing a new rent.
2. Give at least two months' notice before the new rent starts.
3. Once a year. The rent cannot rise until at least a year after the last increase took effect.
4. Serve it properly and keep proof of how and when.

Rent review clauses, stepped rents and agreed uplifts written into older tenancy agreements no longer do the job. A notice that does not follow the rules can be found invalid.

Setting the figure

The test, if the tenant challenges, is the open market rent: what the property would fetch if it were let today on the same terms. Before serving notice:

• look at comparable lets nearby: same size, condition, parking, outside space and, on this coast, sea views;
• allow for the condition of your property, not just the area;
• keep the evidence on file.

A rental valuation gives a written figure you can rely on. Asking prices in Westbourne, Southbourne or Lower Parkstone can differ sharply from street to street, so local comparables carry weight.

How a tenant challenges an increase

A tenant who thinks the proposed rent is above market can apply to the First-tier Tribunal (Property Chamber) before the date the new rent would start. According to the GOV.UK guide and BCP Council's tenant guidance at the time of writing:

• the application fee is £47, with help available for some tenants;
• the tribunal decides the open market rent from both sides' evidence and comparable rents;
• it cannot set a rent higher than the landlord proposed;
• increases are no longer backdated to the date in the notice.

So a high opening figure carries risk without upside. Set a rent you can evidence, and talk to the tenant before the notice arrives.

Arrears: the grounds for possession

With section 21 gone, arrears are dealt with under section 8. The grounds, from the GOV.UK guidance at the time of writing:

On ground 8 the court must make an order if the arrears are proved at both dates. On grounds 10 and 11 it decides whether an order is reasonable, and may adjourn or suspend it on terms. A tenant who pays down below the threshold before the hearing defeats ground 8, which is why the discretionary grounds are usually pleaded alongside it.

Early contact and payment plans

Most arrears start with a change in circumstances: a lost job, reduced hours, illness, a benefit claim in progress. What works:

1. Contact on day one. A call or message the day rent is missed, not a letter a month later.
2. Find out why. A short-term gap is a different problem from a tenant who cannot afford the rent.
3. Agree a written plan. The normal rent plus a fixed amount towards the arrears, with dates. Record it.
4. Point to help. Universal Credit housing costs, a direct payment to the landlord where available, discretionary housing payments from BCP Council, and free debt advice.
5. Keep records. A rent statement, every message, every promise and every missed instalment.

If the plan fails, the records are the case. Interest on rent more than 14 days late is allowed at no more than 3% above base rate if the agreement provides for it; other late fees are banned.

If the arrears do not improve

When a plan has failed and the arrears are growing, the steps are:

1. Check your own compliance first. Deposit protection, prescribed information, gas and electrical certificates and the written terms. Gaps can undermine a claim.
2. Prepare a full rent statement from the start of the tenancy, showing every payment and every missed date.
3. Choose the grounds. Usually grounds 8, 10 and 11 together, so the court has options if the tenant pays down before the hearing.
4. Serve the section 8 notice on the prescribed form, with the correct notice period, and keep proof of service.
5. Apply to court if the tenant has not paid or left by the end of the notice. Use a solicitor who handles possession claims.

Keep talking to the tenant throughout. A tenant who clears or substantially reduces the arrears before the hearing may keep the home, and for many landlords that is the better result than an empty property and a court bill.

Guarantors and arrears

If the tenancy has a guarantor, tell them early, in writing, as the deed requires. A guarantor contacted at the first missed payment is far more likely to help than one told months later.

What a managing agent does

Under full management we:

• reconcile rent daily and contact the tenant the day a payment is missed;
• agree and monitor payment plans in writing;
• tell you at once, with the full picture;
• prepare the rent schedule and evidence, and instruct a solicitor if possession is needed;
• serve section 13 notices on the correct form, at the right time, backed by a local rental valuation.

Our guide to what a property manager does covers the rest of the year, and our Renters' Rights Act guide sets out the other changes. Good tenant referencing at the start prevents many arrears. See our property management service for Bournemouth, Poole and Christchurch.