Why landlords should increase rent fairly (and when not to)

A lot of landlords avoid increasing the rent.

Not because they have not thought about it. They are trying to do the right thing.

They have a good tenant. Rent is coming in. There are no real issues. The last thing they want is to disrupt that.

Some feel that by keeping the rent the same, they are being fair. Others want to avoid the awkward conversation or the risk of the tenant leaving.

It feels reasonable. In practice, it often creates a bigger issue later.

The problem with holding rent still for too long

When rent is left unchanged for years, it slowly drifts away from the market.

At first, the gap is small. Then it becomes noticeable. Then it becomes difficult to correct.

This is where problems start.

A landlord who has held rent steady for a long period often ends up needing to make a larger increase just to catch up. That is far more difficult for a tenant to accept than a small, steady adjustment each year.

From the tenant’s perspective, a £50 increase after 12 months feels very different to a £300 jump after three or four years. I see this regularly where rent has been held for years, and the correction becomes far more difficult than it needed to be.

Most tenants understand gradual increases. It feels fair. It is easier to plan for. It does not come as a shock.

Why fair increases matter in today’s lettings landscape

The reality is that the cost of running a rental property has changed.

Repairs and maintenance are more expensive. Compliance requirements have increased. Insurance, materials and contractor costs have all moved upwards.

On top of that, the lettings landscape is shifting with the Renters’ Rights Act. There is more structure, more accountability and, inevitably, more cost tied to doing things properly.

Whether it is licensing, safety, or future requirements like landlord registration, these are not optional extras. They are part of operating responsibly.

That money has to come from somewhere.

If the rent does not reflect this over time, something usually gives, and it is rarely in the tenant’s favour. Either the quality of the property, the level of service, or the landlord’s willingness to continue investing.

None of those outcomes are good for either party.

There is also a commercial reality. If a property is consistently under-rented, it becomes harder to justify proper maintenance, professional management and compliance. Over time, standards slip or landlords exit the market altogether.

It is not just about the landlord

There is also a tenant side to this that often gets overlooked.

If a tenant is paying significantly below market rent for a long period, it can create a false sense of affordability.

If their circumstances change and they need to move, they are suddenly faced with market rents that feel completely out of reach.

That situation is far more stressful than adjusting gradually over time.

Small, fair increases keep tenants aligned with the real market. It helps them plan properly and avoids a shock later.

It is also worth being clear on this. Most tenants do not leave because of a modest, well-explained increase.

They leave when the property is not maintained, when issues are not dealt with properly, or when communication breaks down.

If a tenant feels looked after and the property is managed well, a fair increase is usually accepted as part of renting.

Keeping things balanced and sustainable

Increasing rent fairly is not about pushing the limits or chasing every last pound.

It is about keeping things in balance.

• The property is maintained properly

• The landlord remains compliant

• The numbers continue to work

• The tenant is treated reasonably and not caught off guard

It is also worth saying this clearly. Market rents do not always go up.

There will be periods where holding the rent steady is the right decision.

The key is not to increase rent every year by default. The key is to review it properly and make a decision based on evidence.

When done properly, it supports a stable, long-term tenancy rather than undermining it.

Doing it properly matters

How the increase is handled is just as important as the decision itself.

The process has become more structured, particularly under the current rules. It is no longer something to approach casually or informally.

If you are unsure how to approach it, it is worth understanding the correct process before taking action. I have covered this in more detail here: How to Increase Rent Correctly Using Section 13

Even if you decide to handle it yourself, getting the process right avoids unnecessary disputes or delays.

What “fair” actually looks like in practice

Most landlords who avoid rent increases are trying to be fair.

Fairness is not about keeping rent frozen.

It is about keeping it aligned with reality, in a way that is steady, transparent and manageable for everyone involved.

Handled properly, a rent review should not feel like a confrontation. It should feel like part of a well-run tenancy.