News

Rent Increases Under Review: What Landlords Need to Know

By Allison Thompson, National Lettings Managing Director, Leaders

The Renters’ Rights Bill is currently moving through the House of Lords and is expected to bring wide-ranging changes to the way privately rented homes are managed. Among the most significant are new limits on how and when landlords can increase rent.

These reforms aim to improve transparency and protect tenants from sudden or excessive rent rises, while still allowing landlords to adjust rent in line with the market.

What’s changing?

At the moment, there are several ways to increase rent:

  • Through a rent review clause in the tenancy agreement
  • By mutual agreement between landlord and tenant
  • By serving a Section 13 notice (currently form 4) once every 12 months, giving two months’ notice

Under the proposed legislation, only the Section 13 route will remain valid. This will become the sole legal mechanism for increasing rent, regardless of what is written into the tenancy agreement.

Key proposals in the Bill

  • Only one rent increase every 12 months, via Section 13 notice
  • Two months’ notice required before any increase takes effect
  • All increases must reflect current market rates
  • Even if both parties agree to a higher rent, a Section 13 must still be served
  • Tenants will be given greater ability to challenge rent rises they believe are unfair

What this means for landlords

These changes will require a shift in how landlords approach rent increases. Rent review clauses in tenancy agreements will no longer be enforceable, and informal agreements will not be valid without a formal Section 13 notice.

Landlords will need to plan rent increases carefully, especially in rising markets where waiting 12 months to adjust rent may affect profitability. It will also become more important to gather clear evidence of comparable market rents, in case a tenant challenges the increase.

If a tenant does challenge the increase:

  • The matter will be reviewed by the First-Tier Tribunal
  • The rent increase cannot be backdated
  • The Tribunal cannot raise the rent above the amount proposed by the landlord
  • In cases of financial hardship, the Tribunal can defer the increase by up to two months

For landlords, this means longer lead times and potentially delayed income increases, even where the rent remains below local market averages.

At LRG, we are supporting landlords to review their processes, update tenancy documentation, and plan ahead to ensure rent adjustments remain both fair and compliant.

What this means for tenants

Tenants will benefit from greater certainty around affordability. The Bill ensures that rent:

  • Can only be increased once per year
  • Must reflect local market conditions
  • Cannot be raised without proper notice and a clear legal process

The Tribunal process will also become less risky for tenants. If they dispute an increase, the rent will no longer be backdated, and it cannot be raised above the figure proposed by the landlord.

Tenants will also be able to request that an increase is postponed for up to two months if they are experiencing financial difficulty.

How landlords can prepare now

Although the Renters’ Rights Bill has not yet become law, landlords can take sensible steps now to get ahead:

  • Remove any rent review clauses from tenancy agreements
  • Keep detailed records of when rent was last increased
  • Always use the most recent legal version of the Section 13 notice
  • Monitor local rental trends and plan any increases well in advance

To reduce the risk of a dispute:

  • Discuss rent increases with tenants before issuing a notice
  • Provide comparable market data to support the new rent
  • Work with a qualified letting agent who understands both the market and the legal framework

Being open and transparent will help reduce the likelihood of a challenge and ensure that any increase is accepted without delay.

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What AI Can and Can’t Fix in Block Management

By Robert Poole, Director – Block Management, Glide Property Management, part of LRG

In an industry increasingly shaped by regulation, rising expectations and squeezed margins, the promise of AI and automation in block management is understandably appealing. The idea of freeing property managers from repetitive tasks, improving compliance, and streamlining communication offers significant operational value. But while technology has the power to transform, it isn’t a silver bullet. The true benefit lies in combining systems with the human qualities that underpin great service.

AI and automation are already making significant inroads into core processes. For example, new tools are capable of reading and extracting key action points from fire risk assessments with 90-95% accuracy. That alone can save property managers hours per building. Elsewhere, automated diagnostics, maintenance scheduling, and even AI-generated email responses are being adopted to reduce manual workload and ensure consistency. Artificial intelligence is also being used to prepare for AGMs, create detailed audit trails, and analyse leases for obligations or breaches. All of this contributes to better oversight and a stronger paper trail.

However, automation isn’t just about cost-cutting or efficiency. The real opportunity lies in allowing property managers to focus on important activities such as building trust, resolving disputes, and developing long-term relationships with residents. The role of a property manager is already complex. It combines technical expertise with soft skills: managing budgets, overseeing contractors, handling complaints, and navigating complex legislation. Technology can support those functions, but it cannot replace them.

Equally important is how technology changes the expectations of leaseholders and residents. As more people use tools like ChatGPT to interrogate service levels, understand their legal rights, or craft detailed correspondence, the quality of engagement increases. Property managers must be ready to meet that challenge with clear, evidence-based answers and full transparency. AI can help them meet that challenge, but it is no substitute for judgment, empathy and experience.

Technology is also helping raise the bar when it comes to transparency. Cloud-based portals allow residents to view real-time updates on repairs, financial documents, and compliance reports. Dashboards can be customised for different stakeholders, from freeholders and developers to Residents’ Management Company (RMC) directors and leaseholders. This isn’t just about visibility, it’s about building confidence in the service being provided. That’s where the human element becomes critical again: knowing what to share, how to frame it, and when to intervene personally.

Training and change management are also vital. Proptech solutions are only as effective as the people implementing them. Ongoing staff training, user adoption support, and clear policies for how tech integrates with existing workflows are essential to long-term success. Companies that treat tech as a bolt-on rather than a strategic enabler risk wasting both money and time.

Looking ahead, we can expect to see wider use of predictive maintenance and smart sensors, monitoring everything from water flow and fire doors to ducting and energy usage. AI will become more involved in budget forecasting, lease compliance monitoring, and even in drafting tribunal submissions. But for all these benefits, the need for human oversight will remain. Technology can propose; people must still decide.

Predictive maintenance, enabled by smart sensors and AI, is going to play a transformative role in how buildings are managed. Instead of waiting for faults to appear or relying solely on scheduled inspections, systems can now monitor equipment performance in real time and identify potential issues before they become critical. For example, sensors can detect unusual vibrations in lifts, water pressure anomalies in plumbing, or airflow inefficiencies in ventilation systems; all of which can be flagged automatically and prioritised for early intervention.

This not only reduces the risk of unexpected failure but also allows property managers to plan repairs more efficiently, minimise downtime, and extend the lifespan of key building systems. It has the potential to dramatically reduce reactive maintenance costs while improving resident satisfaction.

Beyond machinery, predictive tech is being integrated into building fabrics, too. Fire door sensors, automated legionella testing, and real-time monitoring of communal lighting or HVAC systems are becoming more common. When paired with automated reporting and AI-driven insights, this technology provides managing agents with unprecedented visibility. It shifts the role of property management from reactive to preventative and gives leaseholders greater confidence that their homes are being looked after with foresight, not just compliance.

Ultimately, the most successful managing agents will be those who embrace a hybrid approach. They won’t fear AI; they’ll use it to reinforce their professionalism, enhance service delivery, and improve resident engagement. They’ll recognise that while automation can reduce friction and increase speed, it is the human connection that drives trust.

The future of block management isn’t about replacing people with machines. It’s about people using the right tools to deliver better outcomes for the communities they serve.