Rent increase from 1250 -> 1500 pcm

We are renting a 3 bed semi detached house in RG6 since 1 and half year and our landlord wishes to increase our monthly rent from £ 1250 to £ 1500.
He sent us a polite email that with current rent amount he is having difficulties to remortgage and to get a good BTL lenders expect rent to be above £ 1500. He asked what we feel or else he might have to remarket the property.
We feel that its a huge increase and will hit us hard.
How do we challenge this?
Isnt it unfair to increase rent by 20% in such a short time?
After Covid, we just now feel settled with kids school and everything and we dont wish to move, but may not be able to afford that increase either.
Not to mention that property is not in perfect condition either.
I checked our AST and there’s nothing written about rent increase/review.
Your advice will be highly appreciated and helpful.

Is there a rent review clause in your tenancy agreement? If so then the landlord must abide by it.

Assuming there is no rent review clause, what is the going rent for similar properties in the area? You can insist on a s13 notice for the increase and you can challenge it at the First Tier Tribunal. However, unless its way more than the average market rent, you will probably not win.

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