Rent increases... yet interest rates drop ?

sky_rat

Last week the estate agents told me my rent went will increase from £600 to £650 pcm.

The following day the interest rates dropped by 1.5%.

So as peoples mortgages go down, my rent will be going up.

This does not seem fair ???

I have lived in the house for nearly 3 years now.

Its a 2 bedroom house in Milton Keynes.

I would much rather buy but just cant afford to.

If I were to buy the same house the mortgage would be more like £1000 pcm which I couldnt afford.

Also I wouldnt be able to get a big enough mortgage for the salary I am on.

My girlfirend only works occasionally because we have a 2 year old child who she looks after.

So we only have my income to support us and pay for all the bills.

Is there any way I can dispute this increase in rent ?

Especially as interest rates have dropped so much ?

Swans1912

Not sure were you stand tbh.

You don't know what financial situation the LL is in, when was the last time your rent increased?

HGLTsuperstar

Second the above- rates have dropped but may/may not affect LL
i.e. if LL has fixed-rate then no change, the LIBOR rate and banks not passing on the full rate cut etc.
BUT...everything is up for negotiation - you can try and haggle, the worst that can happen is you get refused.
Do your homework - what's the average rent in your area, and how long have you got left on your current contract. Go in with an offer you know will be reufsed then "meet in the middle" - offer a sweetener such as, are you prepared to stay for x-amount of time at a fixed rent etc - then you both know where you stand (but first consider your situation re: job security etc)
HTH

Andy_Hamilton

So will you be happy if/when the interst rates go up to 11%+ they put your rent up a massive amount?

As above, try and haggle saying if you leave and the property says on the market for 2 months they will have lost £1200, It would take the LL 2 years to recover the extra £50PCM. When people see the bigger picture they may work with you if you have paid on time for the last 2 years.

Also check your contract, it normally says how much they will put the rent up.

brit1234

Rents are falling fastest in London and the surrounding areas which I would guess should include Milton Keynes.Have you checked Rightmove and used Property Bee.

http://www.rightmove.co.uk/search.rsp?lo_u=940&lo_t=0&lo_n=Milton+Keynes%2C+Buckinghamshire&se_c=1&poi_e=48473&poi_n=23810&stc_s=false&tr_t=rent&pa_n=1&re_s=price&eventsubmit_dosearch=1&initial_search_time=1226245552396&s_tat=false&garden=false&parking=false&bun=false&pamh=false&flats=false

If you haven't Property Bee you can get it here (shows all the drops in rents and prices on property sites).

http://www.property-bee.com/

It shows that of all the rent changes most are lowering rent

nick1977

sky_rat wrote: »

Last week the estate agents told me my rent went will increase from £600 to £650 pcm.

Is there any way I can dispute this increase in rent ?

Sorry, just cut your original post down there to get the relevant info. Most people when asking questions on here usually give too little, so it makes a change to get too much

Simple fact of the matter is that the rent can go up (or down) as much as the landlord wants, provided it doesn't breach the terms of your rental agreement.
Have you compared the amount to that of similar properties in the area?
If it is still competitive then you can try to make a counter offer, and you may get lucky.
If it is more expensive then other properties a counter offer may be more likely to be accepted, and if it's not, then it might be time to move.

Hope this helps
Nick

davey9998

landlord can do what he likes its his house

you have said though that a mortgage would be £1000 per month so you haven't a bad deal

if you don't like it dispute it and get ready to either continue paying £600 per month or to move out.

i think the landlord would back down but it may not be the case