For many landlords, family tenancies offer something valuable: stability. Longer stays, predictable income and lower turnover can make family lets an attractive part of a portfolio.
However, raising rent within a family tenancy often requires a different approach. Affordability pressures, schooling commitments and moving costs all influence how households respond to change.
Under the Renters’ Rights Act 2025, which is due to take effect from 1 May 2026, rent increases during a periodic or rolling tenancy will need to follow the statutory procedure set out in Section 13 of the Housing Act 1988, and will generally be limited to once in a 12-month period.
That framework makes timing, fairness and communication particularly important when the tenants are families.
Related: Understanding possession grounds under the Renters’ Rights Act from May 2026
Understanding affordability in family tenancies
Families often budget across the year around fixed commitments such as childcare, transport and seasonal household costs. Even a modest rent increase can feel significant if it coincides with other financial pressures.
Before proposing an increase, landlords may wish to consider:
- How long the tenancy has been in place
- Whether previous increases have been gradual
- Current local market rents for comparable family homes
- Broader economic conditions affecting household budgets
The new once-per-year structure means there is less room for incremental adjustments. That makes getting the level right first time more important.
Balancing market rent with retention
Under the statutory Section 13 process, the proposed rent must reflect local market conditions. Tenants retain the right to challenge an increase if they believe it exceeds market value.
For family lets in particular, pushing rent to the upper end of the market may increase the likelihood of:
- Tenant challenge
- Voluntary departure
- A period of vacancy
Void periods can quickly outweigh the benefit of a higher headline rent. In some cases, a measured increase that supports retention may provide stronger overall returns.
Timing increases to reduce disruption
From 1 May 2026, landlords will need to ensure that increases are timed correctly within the statutory framework. Beyond compliance, timing can also influence tenant response.
Serving notice at a point that aligns with:
- School terms
- Employment changes
- The natural anniversary of the tenancy
may reduce friction and allow households time to adjust.
Advance conversations, before formal notice is served, can also help set expectations.
Related: A Crucial Update for Self-Managing Landlords: New Council Powers Began on 27 December 2025
The role of local councils and proper procedure
Alongside affordability and timing, correct procedure remains essential.
The Renters’ Rights Act 2025 reinforces the importance of following the statutory process. Local councils will have a stronger role in overseeing compliance, and rent increases that fall outside the permitted framework may attract scrutiny.
Accurate documentation, correct notice periods and clear records remain essential.
Protecting long-term income
A fair rent increase is not simply about compliance. It is about sustaining income while maintaining occupancy.
Families who feel that adjustments are reasonable and properly explained are often more likely to remain in place. Stability reduces re-letting costs, void periods and marketing expense.
From 1 May 2026, the once-per-year structure encourages landlords to think carefully about the balance between market positioning and tenant retention.
Newton Fallowell works with landlords to assess local rental levels, review affordability considerations and prepare Section 13 notices correctly under the new framework.
If you are considering a rent review within a family tenancy, your local Newton Fallowell branch can help you plan an approach that protects both compliance and long-term returns.
