Renters’ Rights Act: Why a £50 Rent Increase Cost One Landlord £2,400 a Year
A recent First-tier Tribunal decision has highlighted a significant financial risk for landlords considering increasing their tenants’ rent. At Alexander Greens, we believe the case demonstrates why accurate rental valuations and professional advice have never been more important.
A £50 increase that went badly wrong
A landlord in Manchester recently attempted to increase the monthly rent on a two-bedroom apartment from £1,650 to £1,700.
On the face of it, a £50 monthly increase might appear relatively modest, particularly given the rising costs associated with owning and maintaining rental property.
However, the tenant challenged the proposed increase at the First-tier Tribunal.
After considering the available evidence, the tribunal determined that the property’s appropriate market rent was actually £1,450 per month.
The outcome was significant:
| Monthly rent | |
|---|---|
| Existing rent | £1,650 |
| Proposed rent | £1,700 |
| Tribunal-determined rent | £1,450 |
| Reduction from existing rent | £200 |
Rather than receiving an additional £600 per year, the landlord faced a reduction in rental income of £2,400 annually.
The tribunal’s decision was based on market evidence, including comparable apartments in the same building and neighbouring developments.
The case, reported by Property118 and examined by Propertymark, provides an important lesson for landlords across England.
Rent increases under the Renters’ Rights Act
The Renters’ Rights Act has fundamentally changed the way rent increases are handled for applicable private residential tenancies in England.
Under the new arrangements, landlords must use the statutory Section 13 procedure to propose an increase, generally no more than once per year.
Tenants have the right to challenge a proposed increase at the First-tier Tribunal if they believe the new rent exceeds the property’s open-market rental value.
Crucially, the tribunal is not simply deciding whether the proposed increase is reasonable.
It is assessing what the property itself would reasonably command on the open market.
This distinction is particularly important.
If a landlord currently receives £1,500 per month but comparable properties suggest a market value of £1,400, proposing an increase could expose the landlord to a determination below the rent already being received.
The Manchester case demonstrates that this is not merely a theoretical possibility.
Why comparable properties matter
At Alexander Greens, we regularly undertake rental market reviews for our landlords throughout Cambridge and the surrounding areas.
These assessments consider a range of factors, including:
- The location and immediate neighbourhood
- Property size, layout and bedroom accommodation
- Overall condition, presentation and specification
- Gardens, parking and other amenities
- Comparable properties currently being advertised
- Evidence of rents achieved on similar properties
- Current tenant demand and competing rental supply
It is important to recognise that an advertised rent is not necessarily an achieved rent.
A property may be advertised at £1,600 per month, but that does not establish that a tenant will agree to pay that amount.
Equally, two properties with the same number of bedrooms may command significantly different rents because of their condition, size, layout or location.
A reliable rental valuation must take these differences into account.
“My tenant hasn’t had a rent increase for years”
This is something we regularly hear from landlords, and we fully appreciate the sentiment.
Property ownership comes with increasing financial commitments, including maintenance, insurance, mortgage payments and regulatory compliance.
It is entirely understandable that landlords wish to maximise their rental income.
However, the length of time since the last increase does not, in itself, determine the property’s current market value.
For example, a property that was let at a particularly strong rental figure two years ago may already be achieving more than comparable properties available today.
In those circumstances, recommending a further increase could be financially counterproductive.
Sometimes, the best advice we can give a landlord is to leave the rent exactly where it is.
That advice is not a failure to represent the landlord’s interests. Quite the opposite.
What happens if a tenant challenges a rent increase?
Where a tenant makes a valid tribunal application, the tribunal assesses the rental value using the evidence available and its knowledge of the market.
The outcome may be that the proposed increase is supported, a smaller increase is determined, or the rent is reduced below its existing level.
The tribunal’s determination establishes the applicable rent under the relevant statutory procedure, with the effective date governed by the rules and the decision itself.
Landlords should therefore consider the potential financial consequences before serving a notice.
It is also important to understand that the tribunal does not determine market rent simply by reference to the landlord’s mortgage payments, maintenance costs or desired investment return.
These are legitimate financial concerns, but they do not automatically justify a particular rental figure.
Why professional advice matters more than ever
At Alexander Greens, our responsibility is to act in our landlords’ best interests.
That means providing honest, realistic and evidence-based advice, even when our recommendation may not be what a landlord initially hoped to hear.
We understand that landlords want to achieve the strongest possible return from their investment.
So do we.
However, achieving the highest sustainable rental income requires an understanding of the market, not simply selecting the highest advertised rental figures.
A poorly supported rent increase could ultimately result in a landlord receiving less income than before.
Our approach is straightforward:
We recommend rent increases where the market supports them, and advise caution where the evidence suggests that an increase could put existing rental income at risk.
As a Propertymark Protected letting agent, we believe professional standards, sound market knowledge and transparent communication are essential to effective property management.
Thinking about increasing your tenant’s rent?
If you own a rental property in Cambridge or the surrounding areas and are considering a rent increase, we would recommend obtaining an up-to-date rental market assessment before taking action.
Our team can review the current rental market, assess comparable properties and advise on an appropriate approach.
Sometimes an increase will be justified.
Sometimes maintaining the existing rent will be the more sensible financial decision.
Either way, our priority remains the same: protecting your interests and helping you achieve the best sustainable return from your property.
Alexander Greens – An Agent You Can Trust.
Contact our team to discuss your property’s rental value and how the Renters’ Rights Act may affect your next rent review.
Sources: Property118 – Tribunal turns landlord’s £50 rent rise into a £200 cut, published 19 October 2026; Propertymark – Rent reviews under scrutiny: lessons from four tribunal decisions.
This article provides general information for landlords in England and does not constitute legal advice.