Rent increase challenges are moving to the Valuation Office

Tenants are challenging rent increases far more often since the Renters’ Rights Act came in on 1 May 2026. In July 2026 the tribunal made 166 decisions on market rents, compared with 44 in July 2025. The government has now announced that HMRC’s Valuation Office will take over these decisions.

How rent increases work now

Since 1 May 2026, the only way to raise the rent on a periodic tenancy in England is a Section 13 notice:

• once a year at most, and not within 52 weeks of the last increase
• on the official form (Form 4A), with at least two months’ notice
• at a level that reflects the open market rent for the property

If the tenant thinks the new rent is above the market rate, they can challenge it before it takes effect. The application fee is £47. The tribunal decides the market rent, but it can’t set it higher than the landlord proposed. The tenant doesn’t have to pay the higher rent until the final decision, and the new rent isn’t backdated.

For a tenant, a challenge costs little and can’t make their rent go up by more than you asked. That’s why the numbers have jumped.

What the Valuation Office change means

The government announced the change on 9 September 2026, alongside the date for the new landlord database. The aim is to decide challenges faster and take pressure off the tribunal. The details, including how either side could ask for a decision to be reviewed, haven’t been published yet.

Whoever decides, the question stays the same: what would this property let for on the open market today?

How to set an increase that holds up

1. Start with evidence, not a percentage. Look at what similar homes nearby have actually let for recently, not just asking prices. The average private rent was £984 a month in Worcester and £962 in Wychavon in September 2026. See our local rent figures.
2. Compare like with like. Size, condition, parking, garden, furnishing and energy rating all count. A dated kitchen or a poor EPC will pull the figure down.
3. Get the paperwork exactly right. Correct form, correct tenant names, at least two months’ notice, and no earlier than 52 weeks after the last increase. A faulty notice can be challenged on its own.
4. Talk to the tenant first. Explaining the evidence behind a rise heads off many challenges, and the two-month notice period leaves room to agree a figure.
5. Budget for a delay. If an increase is challenged, it won’t apply until the decision, so plan your cash flow for a few months at the old rent.

For tenants

Your landlord can only raise the rent once a year, and must give you at least two months’ notice on the official form. If you think a proposed rent is higher than similar homes nearby, you can apply to the First-tier Tribunal before the new rent starts. You keep paying your current rent until a decision is made.