How Much Can I Increase the Rent on My Property in East London?

East London rents still rank among London’s most affordable, but in many areas they’re going up. Thinking of increasing the rent on your tenanted property? Before you do, read on.

Average monthly rents in East London are rising fast. Havering’s average monthly rent is now £1,531 according to ONS numbers, representing a 9.3% annual increase. In Barking and Dagenham, the average monthly rent increased by 14% to £1,650. Over the same period, average rent increased by 6.3% in London as a whole.

Maybe you own a buy-to-let in one of the Elizabeth Line hotspots, where the new transport connection is leading to rent rises, as a 2025 Goodlord survey confirmed? Or perhaps you need to raise the rent to cover higher mortgage payments and other business costs.

However, there are rules surrounding how much a landlord can increase the rent, and how you do it.

When can a landlord increase the rent?

How often landlords can increase the rent varies depending on the type of tenancy agreement you have in place. These are the two types of assured shorthold tenancy currently, but the Renters’ Rights Bill may lead to rule changes in future.

1. During a fixed-term tenancy

If there’s a rent review clause in the fixed-term tenancy agreement, the landlord can increase the rent after the amount of time stated. If there’s no provision, you will have to wait for the fixed-term tenancy to end unless you can get the tenant’s agreement to an increase.

2. During a periodic tenancy

If your tenants rent under a periodic tenancy, rent review clauses generally allow you to increase the rent once a year, and you need the tenant to agree to it. If the tenancy agreement doesn’t specify then your options are to negotiate with the tenants or serve a Section 13 notice. It’s also known as a legal rent increase notice, and can only be served once a year – and must not be served during the first year in a contractual periodic tenancy including any initial fixed term period.

How much notice is needed for a rent increase?

You generally need to give one month’s notice minimum if your tenants rent on a week-to-week or month-to-month basis. Yearly tenancies require 6 months’ notice of a rent increase. However, if the tenancy agreement specifies a different notice period for rent increases, then you must follow the contract.

How much of a rent increase is legal?

The rules for social housing are slightly different, but for private landlords, the rule is that rent increases must be ‘fair and reasonable’ in the UK. Landlords can refer to several factors to establish what a fair increase looks like:

• Inflation rates
• Consumer Price Index (CPI)
• Retail Price Index (RPI)
• Local average rents
• Property condition

What is the process for increasing rent?

While the process to raise the rent varies slightly according to the type of tenancy, the basic process for increasing rent is the same. Landlords will have to:

1. Consult the tenancy agreement
2. Calculate the rent increase
3. Serve the signed and dated written notice or Section 13 notice
4. Keep the rent increase notice and any correspondence for your records

Can tenants in east London challenge a rent increase?

Landlords and tenants don’t always agree on what constitutes a fair rent increase. Tenants can challenge a proposed rent increase that’s too high by going to the First-tier Tribunal (Property Chamber). After reviewing the evidence, the tribunal will either accept or reject the proposed rent increase. They also have the power to bar subsequent rent rises for a set amount of time.

Changes to rent increases under the Renters’ Rights Bill

The Labour government wants to make it easier for tenants to question unreasonable rent rises, and curb the steep rise of rents above market rates. If the measures become law in the coming months, as the government hopes, the following changes will likely come into effect:

• Landlords must charge the advertised rent to new tenants to avoid bidding wars
• All tenancies will be periodic tenancies
• Landlords will need to serve a Section 13 notice to raise the rent
• You will have to give at least two months’ notice
• The limit for raising the rent will be once per year
• Rent increases must be in line with market rates
• Tenants can go to the First-tier Tribunal if the proposed rent is higher than the market rent

Wondering about rent increases or need advice?

Unsure how to approach a rent increase in East London, or another aspect of your property business – from landlord licensing rules to being a non-resident landlord? Wextons can help, lending expertise of rental property regulations and the property market in Bromley, London Docklands, Whitechapel, Wapping, Bethnal Green and beyond, with guaranteed rent in Bromley.