by House4Students 
Rents have risen fast in the last 18 months — and for student landlords, margins are being squeezed by rising mortgage rates, energy costs, and regulation. But how do you know if it’s time to raise the rent? And more importantly — how do you do it fairly?
This guide helps you assess whether an increase is justified and how to communicate it properly.
1. What’s the Market Doing Right Now?
According to StuRents, average student rents in the UK rose 9.2% in 2024, with the biggest increases in cities like Nottingham, Manchester, and Bristol. Reading and Leeds also saw consistent growth, particularly for HMOs within walking distance of campus.
Meanwhile, ONS data shows inflation has eased slightly in 2025 — but many landlords are still paying 4.5–5.5% on BTL mortgages, and energy costs remain high.
Key pressure points for landlords:
- Higher borrowing costs (post-2023 remortgaging)
- More frequent repairs and regulation costs
- Inclusive bills squeezing margins
Tenants also face cost-of-living pressure, so increases must be proportionate.
2. How to Judge If an Increase Is Fair
Start with the fundamentals: Is there demand? Is your rent below market? If the answer to both is yes, you’ve likely got a strong case for a rent increase.
- Check what’s on the market now: if similar properties are letting fast at higher prices, you may be undercharging.
- Equally, if you’ve had voids or complaints, think twice — raising the rent on an underperforming property rarely ends well.
Before raising the rent, ask yourself:
- Are you charging market rate? Check StuRents, Rightmove, and local agents
- Has the property been improved? (e.g. new furniture, repaint, better WiFi)
- Are your costs up significantly year-on-year?
- Is your HMO still competitive? (communal space, number of bathrooms, condition)
Modest increases of 3–7% are often accepted if justified. Round numbers and transparent reasoning help:
“We’ve held the rent for two years, but due to rising maintenance and energy costs, we’re increasing rent by £5 per person per week for the new tenancy.”
3. Communicating the Change
The way you approach rent rises matters:
- Be clear, early, and respectful — give students and guarantors time to review
- Explain your reasoning — cost breakdowns can build trust
- Offer value — flag recent improvements or bills that are still included
- Time it right — ideally before renewal or new lettings start (Jan–Feb)
If tenants are unhappy, ask what would justify the increase — sometimes repainting, cleaning, or adding better appliances helps secure the let.
Also note: tenants can challenge a rent increase under current rules by referring it to a First-tier Tribunal, which will assess whether the proposed rent is reasonable compared to similar properties. This process can take several weeks, and during that time the old rent usually continues unless agreed otherwise.
More detail here: Gov.uk – Challenge a Rent Increase
The way you approach rent rises matters:
- Be clear, early, and respectful — give students and guarantors time to review
- Explain your reasoning — cost breakdowns can build trust
- Offer value — flag recent improvements or bills that are still included
- Time it right — ideally before renewal or new lettings start (Jan–Feb)
If tenants are unhappy, ask what would justify the increase — sometimes repainting, cleaning, or adding better appliances helps secure the let.
And remember: Renters’ Reform may bring new limits or formal notice periods for increases. As of September 2025, rules are not final — but the direction of travel suggests tenants will receive more formal notice periods and protections around rent increases. Future laws may require longer notice, clearer justification, and possibly restrict mid-tenancy increases entirely. Landlords should stay informed and ensure changes are fair, clearly communicated, and legally sound.
Final Word
Raising rent isn’t just about covering costs — it’s about showing value. In a student market where expectations are rising fast, tenants will pay more if the property justifies it.
Keep it clean. Keep it fair. Communicate well. And track what the rest of the market is doing.
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