Landlord wants to increase our rent by over 15% with less than one month's notice

Rigsbyscat

I would be really grateful if anyone can advise me on both the legality and best way to negotiate a lower rent with my current landlord please.

Briefly the situation is thus:
We have rented the 2 bed flat in London, SW9 for the past three years and now we are on a periodic tenancy as the last lease expired and we continued to pay the same rent at the agreement of the landlord
The landlord telephoned me yesterday to explain that they need to increase our rent from £1,083.33 pcm to £1,250 pcm as of 4th November 08 and for us to sign a new 6/12 month contract

I do appreciate that we are due for a rent review and that in light of the current ecomomic climate things are increasingly difficult for homeowners, therefore it seems reasonable for our Landlord to increase our rent.

With five or six interest rate hikes in less than a year, the reality of running a home is hitting everyone deep in their pockets. Any increase should therefore be in line with inflation.
However, the LL has asked us to pay an over increase twice the rate of inflation and 15.385% more than we currently pay, to cover increased costs and interest rate rises.

I am not sure if rents in the SW9 area have come down (would it be best for me to have some examples of this, especially if they are in the same development?) but we feel we would be paying over paying over the market rate if we accept the increase.

I could do with a template letter to send to them with a reasonable proposal on what we would be prepared to pay. In the region of £100 per month extra, but certainly not £83 per week or over £200 per month more

speedtwin

The landlord can increase the rent either with you signing a new contract or if staying on as a periodic tenancy by a valid section 13 notice which 1 months notice is required.

If you dont sign a new contract he can just serve the s13 correctly.

I sugest you try and bargin with him say you cant afford it and try and meet in the middle. If he thinks you may move out it may help if he thinks there is will be a vacant period. But there is a chance he may say "go then"

silvercar

Totally agree with speedtwin.

Speak to your landlord and negotiate. At the end of the day you may have to face the increase or consider moving.

tbs624

So you're on a periodic tenancy, rent is paid monthly and due on the 4th?

Your LL has to give you at least one full month’s notice of the increase, so the earliest he could now increase the rent is on 4th December. He must notify you in writing via a Housing Act 1988 S13 Notice, and the notice should advise you of your right to challenge the amount of the proposed new rent via a rent assessment committee (bear in mind that you have to lodge this before a new rent becomes due).

If you want to negotiate you could try saying that you would be happy to sign up for a new FT provided you could come to an agreement on the rent - place great emphasis on what wonderful tenants you have been so far,rent paid on time, property in good order etc

As a start the LL will have to get an EPC done for any new tenancy after Oct 1st, then he'd have to advertise, possibly spruce the place up a bit, credit check new tenants, run the risk of new unknown tenants who may not be as reliable as you. Void period whilst sorting it all out would quickly wipe out the potential benefit to him of that increase.

However, as the others have said, the LL may just give you notice of intent to regain possession, especially if the type of property is highly sought after and similar rents in the area are higher. You would then have to pay out moving costs, admin fees, credit check fees etc apart from having all the general hassle of finding somewhere else to move to , so he may play that one during negotiations too.

Have you been served with a S21 Notice at any point during your tenancy?

If you need clarification on correct notice periods contact Shelter, a local CAB or the Council's private sector rentals team

neverdespairgirl

A quick look on Rightmove shows 79 2-bed flats advertised in SW9 for £1,250 a month or less. I don't know, of course, which part of SW9 you live in.

For example:

1. http://www.rightmove.co.uk/viewdetails-22099676.rsp?pa_n=1&tr_t=rent&mam_disp=true

This is advertised as £950 a month

2. http://www.rightmove.co.uk/viewdetails-10967760.rsp?pa_n=2&tr_t=rent&mam_disp=true

This is advertised as £240 a week

3. http://www.rightmove.co.uk/viewdetails-23581343.rsp?pa_n=2&tr_t=rent&mam_disp=true

This is advertised as £250 a week

Rents aren't going up fast in the postcode, it seems. This flat:

http://www.rightmove.co.uk/viewdetails-8198560.rsp?pa_n=1&tr_t=rent&mam_disp=true

was put on the market at £270 a week on 6th July, as "available now". It was reduced to £250 at the end of August, £240 in September, and £225 at the start of Oct. It was finally rented out on 29th October.

For £1,250 a month you can get 3 beds, not many on offer for that, but some, such as:

http://www.rightmove.co.uk/viewdetails-17432353.rsp?pa_n=6&tr_t=rent&mam_disp=true

http://www.rightmove.co.uk/viewdetails-23556089.rsp?pa_n=1&tr_t=rent&mam_disp=true

http://www.rightmove.co.uk/viewdetails-10673535.rsp?pa_n=1&tr_t=rent&mam_disp=true

If you are on a periodic tenancy, the LL can't just put the rent up via a phone call unless you agree to it. If you choose not to accept it, you can challenge it as others have said. You can also, of course, be served 2 months' notice to end on a rent day.

So if you pay your rent on 30th each month, the LL would have to give you notice before 30th Nov to get you out at the end of January.

What do you want to do? Do you want to stay there? Negotiate the rent increase?

speedtwin

tbs624 wrote: »

Your LL has to give you at least one full month’s notice of the increase, so the earliest he could now increase the rent is on 4th December. He must notify you in writing via a Housing Act 1988 S13 Notice, and the notice should advise you of your right to challenge the amount of the proposed new rent via a rent assessment committee (bear in mind that you have to lodge this before a new rent becomes due).


As a start the LL will have to get an EPC done for any new tenancy after Oct 1st,

INCORECT a EPC only has to be done for new tenants not curent ones even if the tenancy is being renewed.


Some L/L take the view that if a tenant in their eyes starts to become differcault and demanding this and that and getting outside bodies involved they will just serve notice. Wrong i know, thats why it is best to compromise it you can between yourselves.

maninthestreet

When was the last time the rent was increased?

lynzpower

http://www.rightmove.co.uk/viewdetails-15961508.rsp?pa_n=1&tr_t=rent&mam_disp=true

this is also cheaper if you wanted to move jst up the road to kennington.

tbs624

speedtwin wrote: »

INCORECT a EPC only has to be done for new tenants not curent ones even if the tenancy is being renewed.

Glad to know you read my posts speedtwin but, as mentioned before, if you try looking at context you'll perhaps see that whole paragraph refers to the LLs option of getting a new tenant in. Netiquette = seek clarification of what another poster is saying first. Sorry you had trouble understanding and that your misinterpretation made you shout:;)

tbs624 wrote: »

As a start the LL will have to get an EPC done for any new tenancy after Oct 1st, then he'd have to advertise, possibly spruce the place up a bit, credit check new tenants, run the risk of new unknown tenants who may not be as reliable as you. Void period whilst sorting it all out would quickly wipe out the potential benefit to him of that increase.

tbs624

neverdespairgirl wrote: »

A quick look on Rightmove shows 79 2-bed flats advertised in SW9 for £1,250 a month or less. I don't know, of course, which part of SW9 you live in.

Useful post NDG . Just looking at the time you posted - late to bed or up early?

Rigsbyscat - if negotiation doesn’t get a reduced increase that you are happy with & you do want to formally challenge it, you must set things in motion asap because your application has to be received before the date on which the increase should come into force, as I mentioned above. You need an Application referring a Notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee

You can get one from either a legal stationer such as Oyez or from the RAP’s office If you want further information try here: London Rent Assessment Panel (covers all London boroughs) Residential Property Tribunal Service, 10 Alfred Place, London WC1E 7LR Tel: 020 7446 7700 Email: [EMAIL="london.rap@communities.gsi.gov.uk"]london.rap@communities.gsi.gov.uk[/EMAIL]

If you pay the new rent on either Nov (which you shouldn’t anyway as he hasn’t given you the required notice) or in Dec you will be deemed to have accepted it and can’t then challenge it.


Let us know how you get on - it all helps others who may be facing similar problems.

neverdespairgirl

tbs624 wrote: »

Useful post NDG . Just looking at the time you posted - late to bed or up early?

Late. Waiting for papers for an emergency injunction.