Scope: England. Wales runs a separate regime for rent variation under the Renting Homes (Wales) Act 2016 — see occupation contracts. Verified against the legislation on 10 August 2026.
Setting the opening rent used to be a commercial decision you could revisit easily. Since 1 May 2026 it is a commercial decision you are largely stuck with, because the only lawful route to increase it is now a statutory one with a tribunal at the end of it.
Why the first number matters more now
Rent review clauses in the agreement no longer do the work. From 1 May 2026, rent on an assured tenancy in England can only be increased by a section 13 notice, once a year, with at least two months' notice — and the tenant can refer it to the First-tier Tribunal. The full mechanics are in rent increases under the new section 13.
The practical consequence: a rent set optimistically low to fill a void cannot be corrected quickly, and a rent set above market invites a tribunal referral that can only go one way. The tribunal cannot set a rent higher than you asked for — so an aggressive figure carries downside and no upside.
What counts as evidence
Comparables, and they need to be genuinely comparable:
- Same locality — street or immediate area, not the town.
- Same size and type — bedroom count, house or flat, and floor for flats.
- Same condition and furnishing. A furnished let is not evidence for an unfurnished one.
- Recent — advertised or let within a few months.
- Achieved, ideally, not asking. An asking price is what somebody hoped for.
Keep them. If a tenant refers an increase to the tribunal, your comparables are the case — and assembling them afterwards is visibly worse than having them at the time.
What you cannot price in
- A higher rent for benefit claimants or families with children. That is caught by the rental discrimination ban, and a rent used to achieve exclusion is the same offence as refusing outright.
- Rent in advance beyond the permitted limit, used as a screening device.
- Anything the Tenant Fees Act 2019 prohibits dressed up as rent.
The deposit follows the rent
The deposit cap is five weeks' rent where annual rent is under £50,000, and six weeks at or above it. Because it is a multiple, the rent you set decides the deposit you may take — and taking too much is a breach in itself. See advertising lawfully for the listing rules and holding deposits.
Then it is fixed for a year
One increase per year, by notice, with the tribunal available to the tenant. Price for the tenancy you want to keep rather than the void you want to end. Run the free compliance check before you advertise.
Common questions
Can I still use a rent review clause?
Not on an assured tenancy in England. Since 1 May 2026 the only lawful route to increase rent is a section 13 notice, once a year, with at least two months notice, and the tenant may refer it to the First-tier Tribunal. Contractual review clauses no longer do the work.
What if I set the rent too high?
The tenant can refer a section 13 increase to the tribunal, and the tribunal cannot set a rent higher than the one you asked for. So an aggressive figure carries downside with no corresponding upside. Since increases are limited to once a year, an opening rent set carelessly is one you live with for some time in either direction.
How much deposit can I take?
Five weeks rent where the annual rent is under £50,000, and six weeks where it is £50,000 or more, under the Tenant Fees Act 2019. Because the cap is a multiple of rent, the figure you set decides the deposit you may lawfully take.