Rent renewal price negotiation

TrickyDicky

We have been in our 2 bed flat for nearly 2 years now - 2 years is up in Febuary.
We are currently paying £846/pcm. Theres a clause in our contract that says rent will go up inline with RPI index as published in the nearest FT to the renewal date, limited to between 3-8% per year.

I have just had a look on right move, and found that there are now 2 flats in our building on the market (they are all practially identical flats). One has been on the market for nearly 5 months now. The initial listed pcm price was £925, which dropped to £895 and now its at £845pcm.

I was just wondering whether we could use this to negotiate no rental increase for ourselves? should we tell the LL that because the other flats are on offer for less than we pay, we refuse to pay any increase? Im just bargaining on the fact that the LL would not want a 3rd empty flat in the building (afaik, the LL owns the whole building, ~ 10 flats). Is the worst he could do was give us our 2 months notice?

We live in woking which is a commuter town for london, because its only 25mins on the train. House prices seem to be tumbling atm. Ive already seen 10-15% drops in the last 6 months in semi/detatched houses, probably more in flats as apparently are rental prices (and they're still building flats!)

Mutton_Geoff

I'd wait until the renewal date. As your landlords costs will have fallen, I'd be looking for a small reduction in rent in exchange for another year's contract.

pinkshoes

I'd go and take a look round the other flats just to check you're getting exactly the same thing (furniture, condition etc...), then use it as a bartering tool to keep your rent the same.

mel19632

I actually used to live in Woking (and own a 2 bed flat there!).

I think £850 is a very reasonable price - but it completely depends on which flats you are living in. If you live in the new builds (near the station) you will pay more than if you live down Hillview Road (for example).

If they ask you to pay more, I would say no and see what the response is. You could always point out to them that you can just move within your block!

sarkin

I would negotiate and mention the fact that you have paid on time for the last 2 years, does he want new tennants that dont pay.

beingjdc

Nearest before the renewal date, or nearest either way? Interest rates are in RPI, so you may find it collapses over the next two months anyway.

TrickyDicky

beingjdc wrote: »

Nearest before the renewal date, or nearest either way? Interest rates are in RPI, so you may find it collapses over the next two months anyway.

Exactly - we had a letter in november from Leaders (who wrote our contract on behalf of the management firm on behalf of the LL :rolleyes: ) that said our new rent would be +5% based on RPI. I quickly wrote back saying I dont accept - wait till january knowing full well that the RPI was likely to drop. I think they knew the same thing and wanted to secure it early. They never replied back.

Im just worried that by not giving the extra 3%, we are in breach of contract (its worded so that there will ALWAYS be an increase). But at the end of the day, does it just come down to wether the LL is happy for me to breach this term, based on market conditions?