Rental income planning is entering a more structured phase.
Under the Renters’ Rights Act 2025, due to take effect on 1 May 2026, landlords will need to follow the statutory procedure set out in Section 13 of the Housing Act 1988 when increasing rent during a periodic or rolling tenancy. Rent increases will generally be limited to once in 12 months, and contractual rent review clauses will no longer apply.
For landlords, this is not simply a procedural change. It alters how yields, renewals and cash flow need to be managed across the year.
Related: Renters’ Rights Act possession grounds: what landlords need to know from May 2026
Understanding the once-a-year framework
Central to that shift is the once-per-year structure.
From 1 May 2026, rent increases during an ongoing periodic tenancy will need to follow the Section 13 process and will generally be limited to one increase within a 12-month period.
This means:
- The timing of each increase becomes critical
- Missed review windows could delay adjustments for another year
- Rent cannot be flexed informally in response to market movement
While tenants will retain the right to challenge a proposed increase if they believe it exceeds market value, the statutory structure places significant emphasis on timing and process.
For landlords focused on performance, this makes planning essential.
Planning yield in a structured cycle
Beyond compliance, the once-per-year rule has direct implications for return on investment.
Yield is no longer just a function of market conditions; it is now closely tied to timing.
If increases can generally only be implemented once per year, landlords will need to:
- Monitor tenancy start dates carefully
- Track when the previous increase took effect
- Align proposed increases with permitted review windows
- Prepare evidence before serving notice
A delayed increase not only affects one month’s income; it may influence projected annual returns.
Building these dates into a forward-looking calendar can help stabilise yield expectations.
Managing renewals and tenancy cycles
Yield is influenced not only by timing, but also by tenancy structure.
Although the Section 13 process applies to periodic or rolling tenancies, the wider rental strategy should consider how tenancy cycles interact with review timing.
Landlords may need to think about:
- When a tenancy is likely to move into a periodic phase
- Whether market conditions support a review within the permitted window
- How renewal discussions align with income objectives
Careful coordination between tenancy management and income planning reduces the risk of reactive decisions.
Cashflow forecasting under the new rules
Cashflow planning will become more deliberate under the once-per-year framework.
Because increases cannot be introduced multiple times in response to changing conditions, landlords may need to:
- Forecast annual rental income conservatively
- Build in realistic review dates
- Account for notice periods before increases take effect
This makes early preparation essential. Waiting until the end of 12 months may narrow the available options.
The role of local councils and regulatory oversight
As with all aspects of the new framework, compliance will remain under oversight.
The Renters’ Rights Act 2025 is supported by increased enforcement preparation and capacity-building for local housing authorities, reinforcing the importance of following the statutory route.
A documented and well-timed approach helps demonstrate that reviews are structured and compliant.
Taking a strategic approach from 1 May 2026
The new rules do not prevent landlords from reviewing rent where appropriate. They require that increases are timed correctly, supported by market evidence and implemented through the correct statutory route.
For landlords focused on long-term returns, the emphasis shifts from reactive adjustments to structured planning.
Whitegates works with landlords to review portfolio performance, align tenancy timelines with permitted review windows and prepare Section 13 notices correctly.
If you would like to assess how the once-per-year framework may affect your yields or cash flow from 1 May 2026, your local Whitegates branch can help you plan your next steps in a measured and compliant way.
