Rent Increase 20% - is this fair

sticky23

Long story short:

We've lived in a flat in East London for more than three years. Last year our landlord went bankrupt, and we signed a 12 month contract with the receivers, keeping the rent at the same level (£1000 a month). This runs out in August. The flat has now been sold to a Buy to Let landlord. He has informed us that he wants £1200 a month - a 20% increase!!!

I think we are probably paying slightly below what it's worth, but certain things are in our favour:
We have always paid our rent on time.

We've lived in this flat for three years, and in another flat in the development for another two.

When we moved in, no inventory was done. I reckon he's going to have to re-decorate the whole flat if we move out..

It's a good 20-25 minute walk to the tube.

What do you guys think?

clutton_2

ask your local council for contact details of the nearest Rent Review Board (or whatever they are called this decade) and submit your landlords request for an increase immediately.

If you do not challenge the proposed new rent within (i think 28 days) you will be seen as having tacitly agreed to it.

However the REnt Board can put it up or down or leave it the same..

If you have been there for 3 years and no increase, i assume you have looked locally to see what other similar properties are fetching.

pinkshoes

Present the LL with proof that you can rent another similar/better property for cheaper than £1200, and negotiate. If he says no, move!

mitchaa

Negotiate in the middle surely?

£1100pm.

Then £1150 the year after, then £1200 the year after that?

tbs624

If you want to stay put then you need to try to negotiate with the new LL, with appropriate evidence as other posters have said.

You can apply to the local RAC (Rent Assessment Committee) by using this form, before the date on which the new rent would come into effect but as you're going to be coming to the end of your Fixed Term the LL can just choose to serve you with a S21 ( and may have already done so earlier in your tenancy).

Are other properties in the same development standing empty? Most LLs prefer to keep a known "good" T in situ rather than risk a void but likewise LLs know that Ts will incur costs if they have to move on elsewhere.

Running_Horse

How much are local comparable rents?

sticky23

When I put in my postcode for a two bedroom flat on rightmove, I get anything from £250 to £335 a week. The £250 a week one was offered to us three years ago for £1100 a month, as it is bigger, and is overlooking the River Lea, and the Olympics site. However, an identical flat to ours, is on for £335 a week (absolute madness)..How long it's been on for that price I don't know.

I think we'd consider staying at £1100, but the new landlord hasn't exactly endeared himself to us (his wife left our flat unlocked, when they came to view it, and we never got an apology for that. We also received a letter recently from his new agent, saying we were late with our rent - which absolutely wasn't true).

I'm not sure the rent review board applies, as our current contract is with the receivers, not the new landlord?

sticky23

tbs624 wrote: »

Are other properties in the same development standing empty? Most LLs prefer to keep a known "good" T in situ rather than risk a void but likewise LLs know that Ts will incur costs if they have to move on elsewhere.

There are a couple of empty flats here. There is also a whole new block of approx. 80 flats next door, which has been completely empty for more than a year - the company that was building it went bankrupt, so they may still be sorting out legal issues with that..

clutton_2

it does not matter who your contract is with.. the rent board assess rents throughout their area - you may want to call them just in case there is an upper financial limit on those rents which are within their brief...