25% rent increase

will__2

I have received a letter from the housing association saying that my rent will increase on 1st April 2009. The letter was dated 26th February but did not arrive until 5th March. The important bit says:

Current rent: £488.03
Current eligible service charge: £36.97
Curret total: £525.00

New rent: £609.93
Eligible service charge: (it doesn't say anything)
New total £609.93

Firstly, I don't understand why the service charge seems to have disappeared. Assuming it is likely to remain the same (or thereabouts), £609.93 from £488.03 is a 24.98% increase. Even if the service charge has been absorbed into the new rent (somehow), £609.93 from £525.00 is still a 16.18% increase.

I am a key worker, living alone, and chose this flat because I could (just) afford it. Another £85 or £122 per month is going to be devastating.

What can I do?

will__2

P.S: A second letter arrived today (dated 3rd March), suggesting we add £10 "per session" to the service charge for window cleaning. (A session may be every month / 2 months / 3 months - to be decided.) Thankfully, this note at least says that unless all residents agree to the scheme, it will not go ahead. £3.33 pcm (for a clean every 3 months) doesn't sound bad but, frankly, in the light of the previous letter, I'd rather live with dirty windows.

will__2

P.P.S: It's an assured shorthold tenency (not fixed period).

Gorgeous_George

You should be given two months' notice (EDIT: d'oh! It is one month as silvercar points out later. I give at least two months). However, if you are at the end of our AST, the notice period may aleady have started (search Sword of Damocles).

Negotiate.

Phone your LL and ask for a compromise. When was the rent last increased?

In the end, it may be pay up or shut up but try to negotiate first.

GG

will__2

It's a housing association so I presume (although perhaps I'm being naive) they'll have upped everybody's rent by the same. Are there no limits on the amount by which they're allowed to increase it?

I only moved in in November, but you're right - I was required to sign a Section 21 the same day. This is the first rent increase.

Ulfar

Get a fair rent assessment done, as its a housing association place they have to abide by it.

tbs624

Is there a tenant's association for your area/block? What does it say in your tenancy handbook about rent increases. and about complaint structures within your housing association? Have a look here - the Tenant Services Authority

silvercar

For a rent increase on a periodic tenancy you should have been served a section 13 notice which, along with details of the increase, will tell you how to appeal. Google section 13 notices to find examples. You are entitled to one months notice to end on a rent day. So if your rent is paid at the beginning of the month, you should have had notice by 1 March for an increase on 1 April.

I don't know which November you are reffering to, but I understood that rents couldn't be increased by more than once a year. (Though your comment of it being a periodic AST from the start confuses me as I thought all ASTs started with a fixed term).