Renewing our rental contract question?

drc

We have to renew our rental contract soon (mid Sep). We will have been in our current place 2 years.

Our LA just contacted us to ask if we are interested in renewing (we are) but has said that according to her rents have been increasing by the Retail Price Index (5%) and that there is increased demand for rental properties as first time buyers cannot afford to get on the ladder.

We live in north London and live in a tiny 2 bed flat.

Obviously the LA wants to get an increase in rent for the LL. However, how should we approach this. We don't want to pay more than about £10 more per week and my husband has had a wage cut recently, so in actuality we can afford less. Is what she said true?

N79

The London rental market varies across fairly small areas so where in North London are you?

Even if the market rent has increased by the RPI that does not mean that you have to pay a higher rent. Negotiate away. Your trump card is that the LL may not want to risk a void over a 2-3% increase.

clutton_2

do some research on www.rightmove.co.uk and see what properties in your postcode are currently renting for...

rent increases are often about negotiating.... i just re-nogotiated a proposed increase in my rent of £100 down to £40....

poppysarah

Point out you've had a decrease in your income and that you can rent similar cheaper elsewhere.
Also politely point out that for the security of you staying for another fixed term you'd like a reduction.

drc

Thanks guys for your replies. Obviously we will negotiate. Last year we got a 10% reduction but LA is insistent that RPI has increased by 5% and that is what rents are increasing by. I have checked on Rightmove for our postcode and rents around here range from anywhere from around £300 per week for a large 2 bed right in central shopping area to about £210-£230 per week for a 2 bed flat on the peripheries. We have been paying £225 per week (reduced from £250) but our flat is tiny (50 sq meters at the most).

tbs624

N79 wrote: »

The London rental market varies across fairly small areas so where in North London are you?

Even if the market rent has increased by the RPI that does not mean that you have to pay a higher rent. Negotiate away. Your trump card is that the LL may not want to risk a void over a 2-3% increase.

Although, unfortunately the LL/LA will also seek to use the fact that few Ts want to pay out for new "admin fees" plus removal costs and have the general hassle of finding somewhere new as their own "trump card".

OP -as others have said, negotiate, negotiate - preferably direct with the LL. Whilst you are still a T, write to the LA requesting the LL's name and address if you don't already know it. they have 21 days from receipt of the request in which to comply or they will committing a criminal offence. Alternatively, pay the 4 quid fee at the Land Reg and find out that way.

If you think that the proposed rent increase is too high you can refer it to a local Rent Assessment Committee via the local Council. You would need to do this before the Rent increase would be due to be applied. The LL can of course still refuse to renew, as a S21 Notice of Intent to Repossess needs no specific reason.

N79

tbs624 wrote: »

Although, unfortunately the LL/LA will also seek to use the fact that few Ts want to pay out for new "admin fees" plus removal costs and have the general hassle of finding somewhere new as their own "trump card".

True - that's why I would always suggest that no silly threats are made in negotiations.

If you think that the proposed rent increase is too high you can refer it to a local Rent Assessment Committee via the local Council. You would need to do this before the Rent increase would be due to be applied. The LL can of course still refuse to renew, as a S21 Notice of Intent to Repossess needs no specific reason.

Not in this case as the rent increase applies to a renewal (and hence a new tenancy) and is not a S13 increase on a periodic tenancy.

However, referring an AST or a post AST periodic tenancy to a RAC is a guaranteed S21 notice as a void followed by a profitable tenancy is better than dealing with the RAC bureaucracy which makes any tenancy instantly a non starter due to the LL's costs in dealing with them. It really should not be suggested as a course of action to anyone wanting to keep their property.

tbs624

N79 wrote: »

Not in this case as the rent increase applies to a renewal (and hence a new tenancy) and is not a S13 increase on a periodic tenancy.

That the T is still within a FT is an important point and I missed it, so thanks for the correction

As the OP has said that his/her contract was up in "mid Sept" and s/he hasn't mentioned whether s/he has been given a S21, it is of course possible that she will initially remain in the property on a Stat Periodic and it may be that both she and the actual LL would be happy to continue that way, with no renewals fee applicable by the LA

drc

Our LL lives in Australia and one of our neighbours who knows the LL has implied he has money troubles and apparently he want to sell the flat next year anyway (our LA has told us we have first refusal lol).

We will negotiate. I don't mind paying a bit more as long as in return we can have the break clause we want (after 6 months with one months notice).

I might also mention the thing about LHA being capped so rents are likely to fall (not sure if this will actually happen but it's worth mentioning to LA) and I will also mention the point about rent staying the same or very slight increase in return for having good reliable tenants rather than risking a void (even of just a month) or bad tenants which would nullify any rent increase.

TBS64 - Last time we renewed there was no fee to pay, we just signed a new one year contract with a new break clause and a reduced rent. We would rather stay here for the time being (6-12 months) but we will leave without hesitation if the rent increase is ridiculous and they won't compromise.