Rent increases in 2026: What does the first tribunal decision tell us?

As landlords and tenants adjust to the rent increase procedures introduced by the Renters’ Rights Act, an early tribunal decision on a challenged increase provides a useful real-world example of how the new system may operate. 

Rent increases can be a source of tension between landlords and tenants, particularly where there is disagreement about a property’s condition or rental market value. While tenants have the right to challenge a proposed increase, the strength and relevance of the evidence provided by both parties can play a significant role in determining the outcome. 

At TDS, we regularly see the difference that clear evidence, accurate records and early communication can make when resolving tenancy-related disagreements. Although rent increase challenges fall outside TDS’s deposit dispute resolution service, many of the same good practices apply; document the condition of the property, retain relevant correspondence and make sure any figures or claims can be supported. 

A recent First-tier Tribunal decision provides a useful example of the information that may carry the greatest weight when determining an open market rent. 

What happened in the recent Skylark Point decision?

In a case concerning a two-bedroom flat at Skylark Point in London, the landlord proposed increasing the monthly rent from £3,102.82 to £3,180. 

The tenants argued that the open market rent should be £3,040. They provided four advertised listings for two-bedroom properties in the same development or immediate area, ranging from £2,995 to £3,110 a month. 

The landlord supplied details of nine two-bedroom properties within the same development where tenancies had recently been agreed. The achieved rents ranged from £3,205 to £3,292.60 a month. 

The tribunal placed greater weight on the landlord’s evidence because it showed rents that tenants had agreed to pay, rather than advertised asking prices. It determined that the proposed rent of £3,180 reflected the property’s open market value. 

This was an individual First-tier Tribunal decision and does not create a binding rule for other cases. However, it illustrates the importance of providing relevant, detailed and reliable evidence. 

How can a landlord increase the rent?

Since the 1st May 2026, landlords in England must use the statutory Section 13 process whenever they increase the rent. This means the landlord must: 

• Use the correct Form 4A 

• Give the tenant at least two months’ notice 

• Wait at least 12 months after the tenancy begins or the previous rent increase 

• Ensure the proposed increase does not take effect during a fixed term 

Landlords can only increase the rent once a year, and the proposed amount should reflect the rent the property could reasonably achieve if it were let on the open market. 

Can a tenant challenge a rent increase?

If a tenant believes the proposed rent is above the open market rent, they can ask the First-tier Tribunal to determine the appropriate amount. 

The tribunal does not decide whether an increase is affordable or reasonable based on someone’s individual circumstances, its role is to determine the open market rent. Essentially, what the property could be expected to achieve if it were let to a new tenant on similar terms. Under the current rules, the rent determined by the tribunal may be lower than or the same as the amount proposed by the landlord. 

What evidence should landlords keep?

Before proposing an increase, landlords and agents should retain evidence showing how they reached the new figure. This could include: 

• Recently agreed rents for similar local properties 

• The address or location and key features of each comparable 

• The date each tenancy was agreed 

• Photographs and an up-to-date description of the property 

• Records of recent repairs or improvements 

• Evidence of any furnishings, appliances or services included in the rent 

Discussing the proposed increase with the tenant before serving notice may also help both parties understand the reasons behind it and potentially resolve concerns early. 

Why good tenancy records matter

Good record-keeping should not begin when a rent increase or dispute is already being considered. Maintaining an accurate record throughout the tenancy can help landlords demonstrate the property’s condition, explain improvements and respond clearly to any concerns raised by the tenant. 

This is a principal TDS regularly highlights in relation to tenancy deposit disputes. A detailed check-in inventory, dated photographs, inspection reports, invoices, repair records and written correspondence can provide an objective account of what has happened during the tenancy. 

Although an inventory does not determine a property’s market rent, it may help establish whether the property is genuinely comparable with others being used as evidence. For example, it could show when rooms were redecorated, when appliances were replaced or whether particular maintenance issues remained outstanding. 

Keeping these records also supports landlords beyond a rent increase challenge. The same evidence may be relevant when addressing repair concerns during the tenancy or considering any proposed deductions from the deposit at the end of tenancy. 

How can landlords and tenants avoid disputes over rent increases?

While tenants have the right to challenge a proposed increase, many disagreements may be resolved before reaching the tribunal. 

Landlords and agents should explain how they arrived at the proposed figure and, where possible, share examples of recent comparable lettings. Evidence showing changes in the local rental market can help tenants understand the basis for the increase and make an informed decision about whether to challenge it. 

Tenants who believe the proposed rent exceeds the property’s market value should also explain their concerns clearly. This might include sharing evidence of lower rents for genuinely comparable properties or identifying differences in condition, facilities or location. 

If the disagreement involves outstanding repairs or another issue arising during the tenancy, it is important to separate that issue from the statutory rent challenge and address it directly. TDS’s Tenancy Redress Service provides free, impartial mediation for a range of mid-tenancy disagreements, helping landlords and tenants work towards a mutually acceptable resolution. However, it does not replace the First-tier Tribunal’s role in determining the open market rent. 

Open communication will not always produce agreement, but it can clarify the issues, reduce misunderstandings and ensure that both parties understand the evidence being relied upon. 

Clear evidence and communication benefit everyone

The rent increase process is designed to balance a landlord’s ability to increase rent in line with the market with a tenant’s right to challenge an amount they believe is too high. 

The Skylark Point decision does not establish a binding rule that agreed rents will always outweigh advertised listings. It does, however, demonstrate the value of recent, detailed and genuinely comparable evidence. The quality of the comparison matters just as much as the rental figure itself. 

This reflects a wider principle that TDS consistently promotes; good tenancy management depends on clear expectations, reliable evidence and open communication. From recording a property’s condition and responding to repair concerns to managing the deposit at the end of the tenancy, keeping accurate records can help landlords explain their decisions and reduce the likelihood of disagreements escalating. 

While TDS does not determine rent increases, we support landlords and tenants throughout the tenancy with practical guidance, government-approved deposit protection and free, impartial resolution services. 

Further support from TDS

NRLA members can choose between free TDS Custodial deposit protection and TDS Insured at exclusive member rates. TDS customers can also access practical tools, templates and guidance through the TDS Help Centre.