What does Section 13 mean?

Understanding the Renters’ Rights Bill: What It Means for Tenants and Landlords

The Renters’ Rights Bill is in its final stage before becoming law, and it is set to bring big changes to the private rental sector. One of the most important updates is around rent increases, when they can happen, how they are managed, and the protections tenants will have.

The goal of the new rules is to make rent changes fairer and more transparent. Tenants will have more protection from unexpected or excessive hikes, while landlords will still be able to adjust rent in line with the local market.

How Rent Increases Work Now

At the moment, landlords can increase rent in a few ways

• By including a rent review clause in the tenancy agreement

• By agreeing on a new rent directly with the tenant

• By serving a Section 13 notice (Form 4), once every 12 months, with two months’ notice

What Will Change Under the New Bill

Once the new law takes effect, only the Section 13 notice will be valid. This means

• Landlords can only raise rent once per year

• A Section 13 notice must always be used, even if both sides agree to a higher rent

• Two months’ notice must be given before the increase starts

• Rent increases must reflect the local market rate

• Tenants will have the right to challenge unfair increases

What This Means for Landlords

• Rent review clauses in tenancy agreements will no longer apply

• Informal agreements will not count without a Section 13 notice

• Planning rent increases will be essential, as you can only make one change per year

• If a tenant disputes an increase, the First-Tier Tribunal will decide the outcome (they cannot set rent higher than what you proposed)

• In some cases, increases may be delayed by up to two months if tenants face financial hardship

What This Means for Tenants

Tenants will benefit from more stability

• Rent can only rise once a year

• Proper notice and process must always be followed

• Increases must be fair and based on market rates

• No backdated charges are allowed

• Tenants can challenge unfair increases and even request a short delay if needed

How Landlords Can Prepare

• Remove rent review clauses from tenancy agreements going forward

• Keep accurate records of rent changes

• Always use the most up-to-date Section 13 notice form

• Track local rental trends so increases are reasonable and well supported

• Be transparent, sharing market data and discussing increases with tenants early helps avoid disputes

The Renters’ Rights Bill is about creating a clearer, fairer system for both landlords and tenants. By planning in advance and following the new process, landlords can manage rent effectively, while tenants gain greater peace of mind about affordability.