What to Do If You Can't Afford a Rent Increase

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title: "What to Do If You Can't Afford a Rent Increase" date: 2026-04-06 tags:

• marketing-automations
• rent-negotiator
• blog
• rent-increase
• tenants-rights type: content status: published channel: blog client: rent-negotiator agent: copywriter publish_date: "2026-04-06" slug: what-to-do-cant-afford-rent-increase metaTitle: "Can't Afford a Rent Increase? Your Options Explained | RentSOS" metaDescription: "Received a rent increase you can't afford? You have three real options. Here's how to think them through — calmly, and with your rights intact." ogImage: "https://images.unsplash.com/photo-1450101499163-c8848c66ca85?w=1200&h=630&fit=crop" faqs:
• question: "Can I stay in my home if I can't afford the rent increase?" answer: "Receiving a rent increase notice doesn't mean you have to leave. You have the right to challenge the proposed amount at the First-Tier Tribunal, and you can negotiate with your landlord before that. From 1 May 2026, the tribunal cannot set rent above the landlord's proposed figure — removing one of the main reasons tenants previously felt nervous about challenging."
• question: "Does my landlord have to consider my financial situation when proposing an increase?" answer: "No — legally, your landlord can propose any amount they believe represents the open market rent. They do not have to take your personal finances into account. However, they also cannot make the increase stick unless it goes through the correct legal process, and the tribunal sets rent at market rate — not based on what your landlord wants."
• question: "How do I negotiate a rent increase with my landlord?" answer: "Start by acknowledging the notice and asking for a conversation. Come prepared with evidence: comparable rents in your area, your LHA rate, your tenancy history (no late payments, no complaints). Offer something in return — a longer tenancy commitment, prompt payment by standing order, or a modest phased increase. Keep it professional and in writing."
• question: "What is the Local Housing Allowance and how does it help?" answer: "Local Housing Allowance (LHA) is the government's benchmark for what private renters in your area should be paying. It's set by the Valuation Office Agency based on property size and location. If the proposed rent significantly exceeds your LHA rate, this is a useful affordability argument — both in negotiation and in a tribunal application. Use the RentSOS LHA calculator to find your rate."
• question: "Will the tribunal consider that I can't afford the increase?" answer: "Not directly. The First-Tier Tribunal sets rent at the open market rate — it doesn't take personal income or affordability into account. However, if the proposed rent is above market rate, it will set a lower figure. If it's at market rate, the decision will reflect that. The tribunal's role is to set a fair market rent, not to decide what you can afford."
• question: "Can I challenge a rent increase even if the notice looks correct?" answer: "Yes. Challenging a rent increase at tribunal is separate from checking whether the notice is valid. Even if the notice is procedurally correct, you can still apply to the First-Tier Tribunal if you believe the proposed amount is above the market rent for your property. Check with RentSOS first — we'll tell you whether you have grounds." keyTakeaways:
• "Receiving a rent increase you can't afford is stressful — but you have three real options: accept, negotiate, or challenge. None of them require you to leave your home."
• "Negotiation can work — landlords often prefer the certainty of a settled tenancy over the time and uncertainty of a tribunal process."
• "From 1 May 2026, challenging at tribunal carries no risk of the rent being set higher than your landlord proposed — removing the main historical deterrent."
• "LHA rates are a useful benchmark for whether the proposed rent is genuinely above local market levels — and a useful negotiating tool."
• "Before deciding anything, check whether your notice is valid — an invalid notice doesn't have to be acted on at all."

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If you've just opened a letter telling you your rent is going up by more than you can afford, you might be feeling panicked right now. That's completely understandable. A rent increase notice is one of the more unsettling pieces of post a renter can receive — especially when the number on the page doesn't match what's in your bank account.

Take a breath. You have options. And none of them involve leaving your home.

You don't have to just accept it

Receiving a Section 13 notice doesn't mean you have to pay the proposed new rent from the date it says. You have a legal right to:

• Accept the increase (if it's workable)
• Negotiate with your landlord (before it takes effect)
• Challenge it at tribunal (and have an independent panel set a fair market rent instead)

You also have the right to check whether the notice is even valid before you do anything. An invalid notice — one with a procedural error — doesn't have to be acted on at all. Run your notice through our free check at rentsos.co.uk before you make any decisions.

Option 1: Accept it

Sometimes accepting the increase is the right call — not because you have no other options, but because the proposed rent genuinely reflects what similar properties in your area cost, and the disruption of fighting it isn't worth it.

If you decide to accept, it's worth planning ahead. Look at your budget and work out when the increase takes effect. If you're on housing benefit or Universal Credit, contact your local authority — any change in your rent may affect your entitlement.

Option 2: Negotiate

This option is underused. Many renters assume their landlord will refuse any negotiation, but landlords have real reasons to keep a settled tenancy going. A good tenant — one who pays on time, looks after the property, and causes no problems — is valuable. Replacing you means finding someone new, a void period with no income, and potential agency fees.

Before you approach your landlord:

1. Research comparable rents — check what similar properties in your area are actually renting for on Rightmove and Zoopla. If the market supports the proposed figure, negotiation is harder. If it doesn't, you have evidence.

2. Find your LHA rate — the Local Housing Allowance is the government's benchmark for private rents in your area by property size. If the proposed rent significantly exceeds your LHA rate, that's a useful affordability reference point. Use our LHA calculator to find yours.

3. Offer something in return — negotiation works best when both sides get something. You might offer a longer fixed-term commitment, a standing order to guarantee prompt payment, or agree to a smaller phased increase (half now, half in six months).

Keep your communication calm, professional, and in writing. Don't threaten tribunal as an opening gambit — use it as a last resort.

Option 3: Challenge at the First-Tier Tribunal

If negotiation doesn't work — or if the proposed rent is significantly above what comparable properties cost — you can apply to the First-Tier Tribunal (Property Chamber) to have an independent panel set a fair market rent.

This costs nothing to apply, and you don't need a solicitor.

The tribunal will look at what similar properties in your area actually rent for and set a legally binding figure. It won't take your personal income into account — but if the proposed rent is above market rate, it's likely to set a lower figure.

[!tip] The key change from 1 May 2026 Under the Renters' Rights Act 2025, from 1 May 2026 the First-Tier Tribunal cannot set rent above the amount your landlord proposed in the Section 13 notice. This removes the main historical reason renters felt nervous about applying — previously, the tribunal could theoretically set a higher rent than the landlord asked for. From May 2026, that risk disappears.

If you're considering challenging, read our full guide to how to challenge a Section 13 rent increase first.

Using LHA as an affordability argument

Your Local Housing Allowance (LHA) rate is published by the Valuation Office Agency and represents the government's benchmark for private rents in your area. It's based on property size (number of bedrooms), your location (broad rental market area), and is updated annually.

If your proposed new rent would put you significantly above your LHA rate, this is worth raising — both in negotiation and in a tribunal application. It doesn't guarantee a lower rent, but it provides an independently sourced reference point to support your case.

Use our LHA calculator to find the rate for your property type and area.

Before you decide anything — check your notice

The very first step, before any of the above, is to check whether your Section 13 notice is legally valid. An invalid notice means you don't have a legal obligation to pay the proposed increase at all — your landlord would need to serve a new, correct notice before any increase could take effect.

Common errors that invalidate a notice include: using the wrong prescribed form, giving insufficient notice, breaching the 52-week rule, or setting an incorrect effective date. Our guide to what makes a Section 13 notice invalid explains each of these in detail.

Run your notice through our free check — it takes two minutes, and it'll tell you exactly what you're dealing with before you make any decisions.

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Key takeaways

• Receiving a rent increase you can't afford is stressful — but you have three real options: accept, negotiate, or challenge. None of them require you to leave your home.
• Negotiation can work — landlords often prefer the certainty of a settled tenancy over the time and uncertainty of a tribunal process.
• From 1 May 2026, challenging at tribunal carries no risk of the rent being set higher than your landlord proposed — removing the main historical deterrent.
• LHA rates are a useful benchmark for whether the proposed rent is genuinely above local market levels — and a useful negotiating tool.
• Before deciding anything, check whether your notice is valid — an invalid notice doesn't have to be acted on at all.

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Frequently asked questions

Can I stay in my home if I can't afford the rent increase?

Receiving a rent increase notice doesn't mean you have to leave. You have the right to challenge the proposed amount at the First-Tier Tribunal, and you can negotiate with your landlord before that. From 1 May 2026, the tribunal cannot set rent above the landlord's proposed figure — removing one of the main reasons tenants previously felt nervous about challenging.

Does my landlord have to consider my financial situation when proposing an increase?

No — legally, your landlord can propose any amount they believe represents the open market rent. They do not have to take your personal finances into account. However, they also cannot make the increase stick unless it goes through the correct legal process, and the tribunal sets rent at market rate — not based on what your landlord wants.

How do I negotiate a rent increase with my landlord?

Start by acknowledging the notice and asking for a conversation. Come prepared with evidence: comparable rents in your area, your LHA rate, your tenancy history (no late payments, no complaints). Offer something in return — a longer tenancy commitment, prompt payment by standing order, or a modest phased increase. Keep it professional and in writing.

What is the Local Housing Allowance and how does it help?

Local Housing Allowance (LHA) is the government's benchmark for what private renters in your area should be paying. It's set by the Valuation Office Agency based on property size and location. If the proposed rent significantly exceeds your LHA rate, this is a useful affordability argument — both in negotiation and in a tribunal application. Use our LHA calculator to find your rate.

Will the tribunal consider that I can't afford the increase?

Not directly. The First-Tier Tribunal sets rent at the open market rate — it doesn't take personal income or affordability into account. However, if the proposed rent is above market rate, it will set a lower figure. If it's at market rate, the decision will reflect that. The tribunal's role is to set a fair market rent, not to decide what you can afford.

Can I challenge a rent increase even if the notice looks correct?

Yes. Challenging a rent increase at tribunal is separate from checking whether the notice is valid. Even if the notice is procedurally correct, you can still apply to the First-Tier Tribunal if you believe the proposed amount is above the market rent for your property. Check with RentSOS first — we'll tell you whether you have grounds.