Rent Increases in Wales: The Section 123 Guide for Landlords

Can a landlord increase the rent in Wales?

Yes. On a standard periodic occupation contract, a landlord in Wales can increase the rent using the process set out in section 123 of the Renting Homes (Wales) Act 2016, served on the prescribed Form RHW12. The landlord must give the contract-holder (tenant) at least two months' notice, and can't increase the rent this way more than once every 12 months.

This guide covers standard periodic contracts: the rolling arrangement most properties run on once any initial fixed term has ended. If a contract-holder is still within a fixed term, rent reviews during that term are usually governed by whatever the written statement itself says, rather than section 123.

How the Section 123 / Form RHW12 process works

Section 123 is a "fundamental provision" of the Renting Homes (Wales) Act 2016, meaning it applies to every periodic standard contract regardless of what the written statement says, and neither landlord nor contract-holder can contract out of it. The requirements are fixed:

• Notice period: at least two months before the new rent takes effect.
• Form: Form RHW12, the Welsh Government's prescribed notice for a section 123 rent increase.
• Frequency: no more than once every 12 months: you can't use this route again until a full year has passed since the last time you increased the rent this way.

Because section 123 is fundamental, these three requirements apply however the contract is worded; a clause trying to shorten the notice period or allow more frequent increases simply wouldn't override the Act.

Fresh standard contracts vs contracts converted from an old tenancy: the difference that matters

Every standard periodic contract uses the same section 123 / Form RHW12 process to raise the rent, but there's one meaningful difference depending on when the contract-holder's occupation began, and it's a common point of confusion for landlords who took on an existing tenancy. A standard contract created fresh after 1 December 2022 has no statutory tribunal route for the contract-holder to challenge the increase itself. A contract that converted from a pre-1 December 2022 assured shorthold tenancy retains a residual right to refer the increase to a tribunal, using Form RAC4.

Rent increase feature	Contract created fresh after 01/12/2022	Contract converted from a pre-01/12/2022 AST
Route	Section 123, Form RHW12	Section 123, Form RHW12
Minimum notice	2 months	2 months
Maximum frequency	Once every 12 months	Once every 12 months
Statutory tribunal challenge	Not available	Available via Form RAC4

If you're a landlord who took over a property with a sitting contract-holder whose tenancy pre-dates the Act, it's worth checking which category applies before you serve notice: it changes what recourse the contract-holder has if they disagree with the new figure (Renting Homes (Wales) Act 2016, s.123).

What happens if the process isn't followed correctly?

Section 123 being a fundamental provision cuts both ways. A landlord doesn't need the contract-holder's agreement to increase the rent through this route, but the notice has to meet the requirements exactly, or it doesn't take effect. That means the correct form (RHW12), at least two months' notice, and not having already increased the rent this way in the past 12 months. Miss any one of those and the increase isn't valid, whatever the written statement says.

Community landlords use a different route

This guide is written for private landlords letting on standard contracts, which covers the overwhelming majority of Morgan Jones's managed properties. Councils and housing associations (community landlords) let on secure contracts instead, which have their own rent-increase mechanism under section 104 of the Act rather than section 123: a separate route with its own rules, not covered here.

Frequently asked questions about rent increases in Wales

Can my landlord increase my rent in Wales?

Yes. On a standard periodic occupation contract, a landlord can increase the rent using the section 123 process: served on Form RHW12, with at least two months' notice, and no more than once every 12 months.

How much notice must my landlord give before a rent increase?

At least two months. This is a fundamental provision of the Renting Homes (Wales) Act 2016, so it applies whatever the written statement says (Renting Homes (Wales) Act 2016, s.123).

How often can a landlord raise the rent under the Renting Homes (Wales) Act?

No more than once every 12 months: a landlord can't use the section 123 route again until a full year has passed since the last time they increased the rent this way.

What is Form RHW12?

Form RHW12 is the Welsh Government's prescribed notice for increasing rent under section 123 of the Renting Homes (Wales) Act 2016. It's the specific form a landlord must serve to raise the rent on a standard periodic contract.

Can I challenge a rent increase in Wales?

It depends on when the occupation contract started. If it was created fresh after 1 December 2022, there's no statutory tribunal route to challenge the increase itself. If the contract converted from a pre-1 December 2022 assured shorthold tenancy, the contract-holder retains a residual right to refer the increase to a tribunal using Form RAC4.

Does my landlord need my agreement to increase the rent?

No: section 123 doesn't depend on the contract-holder agreeing, because it's a fundamental provision. But the landlord still has to follow the process correctly: Form RHW12, at least two months' notice, and no more than once in any 12-month period. An increase served without meeting those requirements isn't valid.

How Morgan Jones handles rent reviews for landlords

For landlords on our full management service, we handle rent reviews as part of the ongoing relationship: serving Form RHW12 correctly, on time, and tracking the 12-month gap between increases so nothing gets served early by mistake. If you're self-managing and just want the process checked before you serve notice, our team can advise.

Rent increases sit alongside the other periodic-contract mechanics landlords need to get right: see our guides to ending a contract without fault (Section 173) and serious rent arrears and possession notices, or start from our Renting Homes (Wales) Act guide and the occupation contracts explainer if you need the wider framework first.