Rents across Wales have risen quickly in recent years, and many landlords are reviewing what they charge. But since the Renting Homes (Wales) Act 2016 came into force in December 2022, the rules on how and when you can increase rent in Wales have changed. Get the process wrong and your rent increase may simply not take effect.
Whether you have one buy-to-let or a growing portfolio, this guide explains how to increase rent properly under Welsh law, step by step. It also covers what contract-holders (tenants) can expect when a rent increase notice lands on the doormat.
First, Check What Type of Contract You Have
Under the Act, tenancies became “occupation contracts”, and tenants are now called “contract-holders”. Most private lets are standard occupation contracts. These are either periodic, meaning they roll on month to month, or fixed-term, meaning they run for a set period such as 12 months.
The type matters, because the rules on rent increases are different for each. Your written statement of the occupation contract, which landlords must give contract-holders within 14 days of the occupation date, should make this clear.
Increasing Rent on a Periodic Standard Contract
For a rolling contract, the Act sets out a clear process that every landlord in Wales must follow:
- Use the prescribed form. Notice must be given on the Welsh Government’s form RHW12 (Notice of Variation of Rent). A letter or email in your own words won’t do.
- Give at least two months’ notice. There must be at least two months between the day the notice is given and the date the new rent starts.
- Increase no more than once a year. After the first increase, each new rent must take effect at least 12 months after the last one did.
In practice, it makes sense for the new rent to start at the beginning of a rental period. That keeps payments simple for everyone and avoids awkward part-month calculations.
What About Fixed-Term Contracts?
During a fixed term, you generally can’t increase rent using an RHW12 notice. Rent can only change mid-term if the contract itself includes a term allowing it, often called a rent review clause, or if you and the contract-holder agree the change.
When a fixed-term contract ends and the contract-holder stays on, it becomes a periodic standard contract. From that point, the RHW12 process applies. If you’re planning a review at the end of the term, check the dates early so your two months’ notice lines up.
Serving the Notice Correctly
A rent increase is only as good as the way the notice is served. Notice can be given by hand, by post, or by another method the contract allows, such as email if the contract-holder has agreed to receive notices that way.
Keep a copy of the completed form, along with a record of how and when it was served. If there’s ever a disagreement, that evidence is invaluable. If you’re posting the notice, build in extra time, because the two months run from when the notice is given, not when you print it.
Can Contract-Holders Challenge a Rent Increase?
Right now, Welsh law treats contract-holders differently depending on when they moved in.
If a tenancy converted to an occupation contract on 1 December 2022, the contract-holder can apply to the Residential Property Tribunal to have the rent assessed against the open market. The Tribunal can set a rent lower, or even higher, than the landlord proposed. Contract-holders who moved in after that date don’t currently have this statutory right, although the Welsh Government has been considering whether to extend it.
Even where no challenge is possible, it pays to set a rent that reflects the local market and the condition of the property. Fair, well-evidenced increases help you keep good contract-holders and reduce the risk of disputes.
How Dudden Law Can Help
Our landlord and tenant team in Cardiff advises on the Renting Homes (Wales) Act every day. We can review your occupation contract, help you prepare and serve a valid RHW12 notice, and advise on rent review clauses in fixed-term contracts, so your increase stands up if it’s ever questioned.
We also help contract-holders across Cardiff and South Wales who have received a rent increase notice and want to understand where they stand.
Insights from Dean Francis
