London Rent Review

A rent review is the process used to assess whether the rent for a privately rented property should change.

In London, proposed rents are usually considered against comparable properties, location, condition, size, furnishings and current market demand.

A landlord cannot increase rent informally whenever they choose. For assured periodic tenancies in England, the correct statutory process must be followed.

The Renters’ Rights Act changed the way rent increases operate for assured tenancies in England.

A landlord may normally increase rent only once in any 12-month period and cannot increase the rent during the first year of a new tenancy.

The proposed rent should reflect the open market rent rather than an arbitrary or punitive amount.

Section 13 provides the statutory procedure for proposing a new rent for an assured periodic tenancy.

The landlord must serve the current prescribed Form 4A, stating the proposed rent and the date on which it is intended to begin.

The new rent cannot take effect before the notice period expires or before the law otherwise permits another increase.

Landlords must use the statutory process to increase rent for an assured periodic tenancy, even where the tenancy agreement contains a rent-review clause.

An automatic contractual clause should not be relied upon as a substitute for the prescribed notice procedure.

Any increase agreed before 1 May 2026 through a rent-review clause may be affected by the transitional rules where it was intended to take effect after that date.

Open market rent is broadly the rent a landlord could reasonably expect to receive if the property were offered to the market on similar terms at that time.

It is not necessarily the highest advertised asking rent. A reliable assessment should consider genuinely comparable properties and their differences.

The evidence should be current, local and relevant to the property being reviewed.

London is made up of many distinct rental markets. Two similar homes can command different rents because of transport links, school catchments, local amenities or the character of the immediate street.

Landlords should avoid relying only on borough-wide averages because these may conceal significant differences between neighbourhoods and property types.

A professional review should balance online evidence with the condition and characteristics of the actual property.

Comparable evidence is strongest when it relates to recently marketed or let properties that closely resemble the subject property.

Landlords and agents should record why each comparable is relevant and make reasonable adjustments for material differences.

A larger property, premium refurbishment or superior location may justify a higher rent, while poor condition or missing amenities may justify a lower figure.

An advertised asking rent shows what a landlord hopes to obtain, but it does not prove that a tenant agreed to pay that amount.

Achieved-rent evidence can provide a stronger indication of market value where it is available and sufficiently comparable.

A balanced review may consider both current listings and recent completed lettings rather than relying on a single source.

A landlord must normally give the tenant at least two months’ notice of a proposed rent increase.

The notice must state when the new rent will begin. That date must comply with the statutory timing requirements and cannot ordinarily fall within 12 months of the previous increase.

If the notice contains an incorrect date or does not provide the required period, the proposed increase may be invalid.

A tenant should review the notice, proposed amount and effective date promptly.

The tenant may accept the increase, discuss the figure with the landlord or agent, or apply to the First-tier Tribunal if they believe the proposed rent is above the open market rent.

Ignoring the notice does not necessarily prevent the proposed rent from taking effect.

A tenant who believes a proposed rent exceeds the open market rent may apply to the First-tier Tribunal Property Chamber.

The application should be made before the proposed increase takes effect. Tenants should not wait until after the effective date to seek advice.

The tribunal considers the rent the property could reasonably achieve on the open market under a comparable tenancy.

The tribunal does not decide whether an increase feels affordable or fair based only on the tenant’s personal finances.

Its role is generally to determine the open market rent for the property by considering its condition, location, size and tenancy terms.

The tribunal may consider comparable evidence from both parties and may inspect the property where appropriate.

A tenant may also be able to ask the First-tier Tribunal to determine the open market rent where they believe the initial rent agreed at the start of the tenancy is excessive.

An application concerning the initial rent must normally be made within the first six months of the tenancy.

Because strict deadlines may apply, tenants should obtain advice promptly.

The condition of a property may affect its open market rental value.

Serious disrepair, damp, mould, defective heating or missing facilities may distinguish a property from higher-priced comparables.

A rent review does not remove the landlord’s separate responsibility to complete legally required repairs.

Landlords should begin by reviewing the existing rent, the date of the previous increase and the property’s current condition.

The proposed rent should be supported by reliable evidence and should not be used as a means of pressuring a tenant to leave.

A moderate, well-supported increase may be easier to justify and maintain than an aggressive figure based on exceptional listings.

Tenants should compare the proposed amount with genuinely similar properties rather than general London averages.

Evidence should account for differences in location, size, condition, amenities and included services.

Where the proposed increase appears reasonable, the tenant may still discuss timing or other practical concerns with the landlord.

Landlords and tenants may discuss the proposed rent and try to reach a practical resolution.

A tenant might present stronger comparables, highlight outstanding repairs or suggest a different figure.

Any discussion should be documented clearly. However, the landlord must still follow the required statutory process when increasing the rent.

A rent increase should not be used as an informal eviction method or punishment for reporting repairs.

Landlords and agents should not misrepresent market evidence, backdate an increase or demand payment before the lawful effective date.

Failure to use the correct process may lead to disputes, enforcement action or an unsuccessful claim for unpaid rent.

Good documentation helps both parties understand how the proposed rent was calculated and whether the correct procedure was followed.

Landlords and agents should keep records securely and in accordance with applicable data-protection requirements.

Dan & Shiv Realty provides practical London rental-market guidance for landlords and tenants.

We assess property characteristics, review relevant comparable evidence and help landlords prepare clear, professionally supported rent recommendations.

Where a matter becomes disputed or proceeds to a tribunal, clients should obtain advice from an appropriately qualified housing professional.