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  • FIRST POST
    • Becks81
    • By Becks81 8th Sep 17, 5:22 PM
    • 426Posts
    • 2,903Thanks
    Becks81
    Rent increase by 35%
    • #1
    • 8th Sep 17, 5:22 PM
    Rent increase by 35% 8th Sep 17 at 5:22 PM
    As above, the landlord has just informed us that they will be increasing the monthly rent by £240 in January 2018.

    We had a rent increase last year and the year before of around 2%, in our tenancy it states that 'the rent is normally increased by a percentage linked to the annual rate of inflation' This is the only section in our tenancy that mentions rent payments.

    I know we rent, and it is his house (we rent privately) but we are good tenants, never late with the rent and have lived here for 9 years. Can he do this? Finding an extra £240 spare cash each month is going to be a challenge.
Page 1
    • G_M
    • By G_M 8th Sep 17, 5:27 PM
    • 41,952 Posts
    • 48,563 Thanks
    G_M
    • #2
    • 8th Sep 17, 5:27 PM
    • #2
    • 8th Sep 17, 5:27 PM
    Is Jan 2018 when your current fixed term expires? Is this new rent being offered as part of a new fixed term contract?

    If 'yes' to both, then yes he can. And likewise you don't have agree. You can

    * agree or
    * negotiate
    * move elsewhere (f cheaper)
    * switch to a periodic tenancy at current rent and see what the landlord does eg

    - nothing
    - S21 to evict (2 months)
    - S13 to increase the rent (you can appeal)

    For more, see

    * Rent increases: when & how can rent be increased?

    How much are comparable properties renting for in the area?
    Last edited by G_M; 08-09-2017 at 6:09 PM.
    • Becks81
    • By Becks81 8th Sep 17, 5:40 PM
    • 426 Posts
    • 2,903 Thanks
    Becks81
    • #3
    • 8th Sep 17, 5:40 PM
    • #3
    • 8th Sep 17, 5:40 PM
    Thank you for your post, and the informaton given.

    In answer to your question, yes our current tenancy expires in Jan 2018, and this rent increase will commence from this new tenancy.

    Having looking at similar houses in the area, the rent increase is fairly similar (something I was not aware of as have not been looking for over 9 years)

    My argument really would be that it is a huge increase. But having just seen the information on the link you posted. If we put up too much of a fight, he could just give us notice anyway.

    Thanks again for you response. It is much appreciated.
    • G_M
    • By G_M 8th Sep 17, 5:49 PM
    • 41,952 Posts
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    G_M
    • #4
    • 8th Sep 17, 5:49 PM
    • #4
    • 8th Sep 17, 5:49 PM
    Always worth negotiating.

    Whilst a LL will normally want to keep his rent broadly in line with the local market rate, it is worth bearing in mind that a longstanding, reliable tenant is also of 'value' to a LL.

    If you leave (or are evicted), the LL will

    * have at least a month between tenants - that's a month+ lost rent
    * have marketing and other new tenancy set-up costs
    * often have to redecorate/update the property (esp after 9 years)
    * end up with a new, un-tested, tenant, who may or may not be reliable, and may, or may not, stay long-term.

    So you have some bargaining power.
    Last edited by G_M; 08-09-2017 at 6:10 PM.
    • jackomdj
    • By jackomdj 8th Sep 17, 6:38 PM
    • 2,792 Posts
    • 3,476 Thanks
    jackomdj
    • #5
    • 8th Sep 17, 6:38 PM
    • #5
    • 8th Sep 17, 6:38 PM
    Thank you for your post, and the informaton given.

    In answer to your question, yes our current tenancy expires in Jan 2018, and this rent increase will commence from this new tenancy.

    Having looking at similar houses in the area, the rent increase is fairly similar (something I was not aware of as have not been looking for over 9 years)

    My argument really would be that it is a huge increase. But having just seen the information on the link you posted. If we put up too much of a fight, he could just give us notice anyway.

    Thanks again for you response. It is much appreciated.
    Originally posted by Becks81

    Are you saying your rise brings you in line with your local market rate? If so you could always look at it that you have had the benefit for several years of underpaying the local rate.
    • Cakeguts
    • By Cakeguts 8th Sep 17, 8:40 PM
    • 3,092 Posts
    • 4,283 Thanks
    Cakeguts
    • #6
    • 8th Sep 17, 8:40 PM
    • #6
    • 8th Sep 17, 8:40 PM
    If this is a now a market rent for the area the only way you can get to pay less is to move to a different area. Costs to the landlord will have risen over 9 years. You may find that the new amount of rent is the same ratio to your earnings as the rent you paid was 9 years ago and you have just got used to having a lower rent?
    • Car1980
    • By Car1980 9th Sep 17, 5:36 AM
    • 233 Posts
    • 112 Thanks
    Car1980
    • #7
    • 9th Sep 17, 5:36 AM
    • #7
    • 9th Sep 17, 5:36 AM
    Geez. Even if you negotiate and halve it, it's still a big increase. It's a bloody nerve. I'd look elsewhere on principle
    • 00ec25
    • By 00ec25 9th Sep 17, 8:06 AM
    • 5,369 Posts
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    00ec25
    • #8
    • 9th Sep 17, 8:06 AM
    • #8
    • 9th Sep 17, 8:06 AM
    Geez. Even if you negotiate and halve it, it's still a big increase. It's a bloody nerve. I'd look elsewhere on principle
    Originally posted by Car1980
    its not a "nerve". The LL has been foolish in not increasing the rent by small amounts each year for the last 9 years and is now in the position where a step change is required to enable catch up.

    I appreciate that for many people this may well be true, but if your pay had been frozen for 9 years, would you ask for a 1% pay rise now or would you want more than that?
    • cjdavies
    • By cjdavies 9th Sep 17, 8:48 AM
    • 2,791 Posts
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    cjdavies
    • #9
    • 9th Sep 17, 8:48 AM
    • #9
    • 9th Sep 17, 8:48 AM
    I appreciate that for many people this may well be true, but if your pay had been frozen for 9 years, would you ask for a 1% pay rise now or would you want more than that?
    Originally posted by 00ec25
    Would want more, however would employers give that much of an increase?
    • caronoel
    • By caronoel 9th Sep 17, 9:45 AM
    • 774 Posts
    • 983 Thanks
    caronoel
    This is an illustration of the problem with landlords not putting their rents in line with market norms.

    It just stores up a headache for the tenant when they want to find something new, or thd LL rebases the rent to a more realistic level.

    The OP has done very well out of the landlord over the past 9 years. There may be some room for negotiation, but moving out may just be cutting your nose off to spite your face.

    Time to pay market rates.
    • cjdavies
    • By cjdavies 9th Sep 17, 10:49 AM
    • 2,791 Posts
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    cjdavies
    Seems steange with mortgages, if anything when first taken 9 years ago it was dropping rather than going up.
    • BLOW FLY
    • By BLOW FLY 9th Sep 17, 11:11 AM
    • 105 Posts
    • 81 Thanks
    BLOW FLY
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF
    • G_M
    • By G_M 9th Sep 17, 11:19 AM
    • 41,952 Posts
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    G_M
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.
    BF
    Originally posted by BLOW FLY
    Perhaps. But so what?

    whether his mortgage has increased, hhis tax, or other costs does not really matter.

    What matters is the local market rate.

    If the tenant can find a similar local property at a lower rent, he should either use this to negotiate, or move to that other property.

    If the landlord can easily find another acceptable tenant willing to pay the new (35% higher) rent, then he's less likely to negotiate and may insist the current tenant pay the new rent or leave.

    That's how the system works. A debate about the rights/wrongs of market forces driving the rental market is perhaps valid, but not in this forum, and certainly not in this thread.
    • dimbo61
    • By dimbo61 9th Sep 17, 11:20 AM
    • 9,550 Posts
    • 5,164 Thanks
    dimbo61
    You could offer to meet the Landlord half way !
    Offer £120 a month more and see if they are happy to accept.
    They may come down from £240.
    Has the property been well maintained over the last 9 years ?
    Gas safe check every year ( if you have gas )
    Electrical safety inspection ? PAT testing and legionnaire check ?
    Deposit protected ?
    Is the property in a good area for renting with high demand.
    Would you consider buying it ? Can you afford to buy it ?
    • PField
    • By PField 9th Sep 17, 11:35 AM
    • 88 Posts
    • 65 Thanks
    PField
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF
    Originally posted by BLOW FLY
    This is a cost/tax to business and was always going to be past on to customers ( tenants). Might have seems like a good idea at the time, but it's only going to push up rents in the next few years further. Letting out my old flat might now start to make more sense than keeping it as a pied a terre.
    • PasturesNew
    • By PasturesNew 9th Sep 17, 11:43 AM
    • 60,726 Posts
    • 354,952 Thanks
    PasturesNew
    Unfortunately for you, the LL probably has been reading stuff online and chatting down the pub and to other local agents/landlords and feels he's undercharging you ... and, buoyed up by the realisation that he could trouser another £2880 per year, every year .... he now wants a bit of that.

    Welcome to the new world of Travellers With Houses. No longer feeling you can live in a house having rented it ... but feeling forever "moved on". Homeless in mind..... expensive each time.

    Forget your annual holidays from now on as you'll have to think about the £000s you need to save up "in case" a random letter arrives at the drop of a hat and you need the funds to move on.
    • caronoel
    • By caronoel 9th Sep 17, 6:06 PM
    • 774 Posts
    • 983 Thanks
    caronoel
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF
    Originally posted by BLOW FLY
    And we will likely see a lot of that over the next few years, as property investors will have no choice but to pass on increased costs to hapless tenants
    • steampowered
    • By steampowered 9th Sep 17, 8:17 PM
    • 1,904 Posts
    • 1,781 Thanks
    steampowered
    And we will likely see a lot of that over the next few years, as property investors will have no choice but to pass on increased costs to hapless tenants
    Originally posted by caronoel
    There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.
    • PField
    • By PField 9th Sep 17, 8:42 PM
    • 88 Posts
    • 65 Thanks
    PField
    There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.
    Originally posted by steampowered
    Supply and demand will see to rent increases, as less people invest in the sector. Plenty of people need to rent and will never be able to buy. Home ownership is going down, more people are renting.
    • caronoel
    • By caronoel 10th Sep 17, 6:48 AM
    • 774 Posts
    • 983 Thanks
    caronoel
    There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.
    Originally posted by steampowered
    In Ireland they have tried and reversed punitive taxes on property investors on a number of occassions

    Net result has been a dramatic rise in both rents and in tax evasion.

    The same thing will happen in the UK
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