Rent Increases at the Start of a New Tenancy: What You Need to Know

Starting a new tenancy -- whether you are moving into a property for the first time or signing a renewal agreement -- raises questions about rent. Can the landlord charge whatever they want? What if the rent is higher than the previous tenant paid? And what happens if they try to increase it shortly after you move in?

This guide covers the rules around rent at the start of a tenancy, how Section 13 applies to new agreements, and what changes under the Renters' Rights Act 2025 from 1 May 2026.

Rent at the Start of a New Tenancy: The Current Rules

When you sign a new tenancy agreement for the first time, the rent is whatever you and the landlord agree. There is currently no legal cap on how much a landlord can charge a new tenant. The rent is set by the market -- what the landlord asks for and what you agree to pay.

This means:

• A landlord can charge a new tenant more than the previous tenant paid
• There is no obligation to disclose what the previous tenant was paying
• The initial rent is a matter of negotiation between you and the landlord
• Once you sign the agreement, that rent is fixed for the tenancy term

However, "the market sets the price" does not mean you have no leverage. If the rent seems high for the area, you can:

• Compare similar properties on Rightmove, Zoopla, or OpenRent
• Negotiate before signing -- many landlords would rather accept a slightly lower rent than have the property sit empty
• Ask the letting agent to justify the price with comparable evidence

When Is the Landlord's First Opportunity to Increase Rent?

Once your tenancy begins, the timing of any rent increase depends on your tenancy type:

Fixed-term tenancy

If you have a fixed-term agreement (typically 6 or 12 months), the rent cannot normally be increased during the fixed term unless the agreement contains a specific rent review clause. Even with a rent review clause, the Renters' Rights Act will make these clauses void from 1 May 2026.

When the fixed term ends and your tenancy becomes periodic (rolling month to month), your landlord can propose a rent increase using the Section 13 process.

Periodic tenancy from the start

If your tenancy is periodic from day one (no fixed term), the landlord can serve a Section 13 notice at any time, provided at least 52 weeks have passed since the tenancy began. The 52-week rule ensures you cannot face a rent increase in your first year.

The 52-week rule

This is the key protection for new tenants. Under Section 13, a landlord cannot increase rent more than once in any 52-week period. Since the initial rent counts as the starting point, your landlord must wait at least 52 weeks from the start of the tenancy before serving the first increase notice.

Renewing Your Tenancy: What Happens to Rent?

When your fixed-term tenancy comes up for renewal, the landlord may propose a new agreement at a higher rent. This is where many tenants feel pressured.

Under current law:

• If you sign a new fixed-term agreement at the higher rent, that becomes the new agreed rent. You have accepted the increase by signing.
• If you do not sign and your tenancy becomes periodic, the landlord must use Section 13 to increase the rent. They cannot simply charge more because the fixed term ended.
• If the landlord insists on a higher rent as a condition of renewal, you do not have to sign. Your tenancy will roll into a periodic tenancy at the existing rent, and the landlord must then follow the formal process.

This is an important distinction. Many tenants do not realise they have the option to let the fixed term end and continue on a periodic basis at the same rent. The landlord then has to use Section 13, which gives you the right to challenge the increase at the tribunal.

The Renters' Rights Act 2025: What Changes

From 1 May 2026, the Renters' Rights Act makes several changes that directly affect new tenancies and rent increases:

All tenancies become periodic

The Act abolishes fixed-term tenancies for new assured tenancies. All tenancies will be periodic from day one. This means:

• No more fixed-term agreements that lock you into a set period
• The 52-week protection before the first increase still applies
• Landlords must always use Section 13 to increase rent -- there is no alternative route

Contractual rent increases are void

Any clause in a tenancy agreement that provides for rent increases (such as annual percentage increases, RPI-linked clauses, or rent review mechanisms) will have no legal effect. The only way to increase rent is through a Section 13 notice.

Two months' minimum notice

All Section 13 notices must give at least two months' notice (currently one month for monthly tenancies). This gives new tenants more time to respond to a first increase.

Tribunal protection strengthened

If you challenge a proposed increase at the First-tier Tribunal, the tribunal can only set the rent at or below the proposed amount. They cannot increase it above what the landlord asked for. This removes the risk that challenging could backfire.

No Section 21 at tenancy start

Currently, some landlords serve a Section 21 notice at the start of the tenancy as a precaution. From 1 May 2026, Section 21 is abolished. A landlord cannot evict you without specific statutory grounds, regardless of when the tenancy began.

Common Situations and What to Do

"My landlord wants to increase rent when I renew my contract"

You do not have to accept. If you do not sign a new agreement, your tenancy continues as a periodic tenancy at the current rent. The landlord must then use Section 13, and you can challenge the increase at the tribunal if you believe it is above the market rate.

"I just moved in and the rent seems higher than comparable properties"

Unfortunately, the initial rent is a matter of agreement. If you have already signed, you are committed to that rent for at least the first 52 weeks. For future reference, always research comparable rents before signing a new tenancy.

"My landlord is asking me to pay a higher rent before I move in than was advertised"

If the property was advertised at one price and the landlord is now asking for more before you sign, this may be a red flag. You are not obliged to agree. From 1 May 2026, the Renters' Rights Act includes provisions for a future ban on rental bidding (landlords encouraging tenants to bid above the asking rent), though this power has not yet been activated.

"My letting agent says I must sign a new agreement at a higher rent or leave"

This is misleading. If your fixed term has ended, your tenancy continues as a periodic tenancy. You cannot be forced to sign a new agreement or leave. The letting agent may be unaware of or misrepresenting the law. Seek advice from Citizens Advice or Shelter if you feel pressured.

Negotiating Rent at the Start

While there is no legal cap on initial rents, negotiation is more common than many tenants realise:

• Research the area. Know what comparable properties are renting for. Specific data is more persuasive than "it seems expensive."
• Highlight your strengths as a tenant. Stable employment, references from previous landlords, and willingness to commit all make you attractive.
• Ask, do not demand. A polite request backed by evidence is more effective than confrontation.
• Consider the whole package. Sometimes a landlord will not reduce rent but will agree to include bills, make improvements, or provide longer notice before any future increase.
• Be prepared to walk away. The best negotiating position is having alternatives.