AST ending soon... how to change to periodic?

jjlandlord

My understanding of the clause you quoted is that this is a contractual rent increase mechanism: The rent increases every year based on the RPI.

The increase is automatic and the amount readily available. So while obviously it'd be a good idea for the landlord/agent to send you a reminder with amount clearly stated, they are not required to.

I do not understand exactly sub-clause 1.7.8.5, though. The increase is automatic so it's unclear to me what's they mean by "not applying it" or "applying it in the future".

mystra

jjlandlord wrote: »

My understanding of the clause you quoted is that this is a contractual rent increase mechanism: The rent increases every year based on the RPI.

The increase is automatic and the amount readily available. So while obviously it'd be a good idea for the landlord/agent to send you a reminder with amount clearly stated, they are not required to.

I do not understand exactly sub-clause 1.7.8.5, though. The increase is automatic so it's unclear to me what's they mean by "not applying it" or "applying it in the future".

seems a bit unfair that they don't actually have to tell us how much it would be then?

i guess the applying it in the future seems like it's just if they don't increase it on the usual date each year, doesn't mean they can't increase it later on.

jjlandlord

mystra wrote: »

seems a bit unfair that they don't actually have to tell us how much it would be then?

It's already written in that clause!
"the Rent will increase by the amount stated for the annual increase in the Index of Retail prices (All Items) as quoted for the month two months prior to the month of increase."

mystra

jjlandlord wrote: »

It's already written in that clause!
"the Rent will increase by the amount stated for the annual increase in the Index of Retail prices (All Items) as quoted for the month two months prior to the month of increase."

sorry but it's not the most straightforward written thing in the world, I'm not an estate agent, LL or legal eagle so sorry these things aren't hugely clear to me!

I don't know what the Index of Retail Prices is, they should send me a clear cut figure in black and white not expect me to sit and work it out for myself, and yet they want £120 admin fees for their "admin services".

jjlandlord

mystra wrote: »

I don't know what the Index of Retail Prices is, they should send me a clear cut figure in black and white not expect me to sit and work it out for myself.

If you're unsure and they don't send you a nice reminder, why don't you ask them what their understanding of the new rent is a month before it becomes due? At least it'd put everyone on the same page.

mystra

jjlandlord wrote: »

If you're unsure, why don't you ask them what their understanding of the new rent is a month before it becomes due? At least it'd make everyone on the same page.

I've been asking what the new rent will be for over a week and still they claim they don't know and can't get hold of the landlord. They've never had trouble getting hold of her before.

It feels like these contracts are made to be difficult for most people to understand and agents take advantage. The rents have gone up a lot in our area which is what worries me if we did stay, as i think it would be more than the 4.5%ish increase last year. If it went up the same as last year it would be about an extra £10 per week, which is manageable for the time being (although i really do need to be on periodic and don't want to sign another AST as i've already mentioned) just to get us in a better position to move when the time's right for us.


i HATE renting, there's no security, and in London no-one looks after a good tenant as they couldn't care less, you're easily replaced. I wanted to be in a position to start saving properly this year, but looks like that will be put off for a little while longer. I doubt we'll ever own our own place at this rate lol, but that goes for most of the country these days.

jjlandlord

mystra wrote: »

I've been asking what the new rent will be for over a week and still they claim they don't know and can't get hold of the landlord.

There's no need to get hold of the landlord for that...

mystra wrote: »

The rents have gone up a lot in our area which is what worries me if we did stay, as i think it would be more than the 4.5%ish increase last year.

Rents in your area do not matter because any increase of your rent is governed by the clause in your contract.
If I understand the dates of your tenancy, the new rent should be effective in March so the increase should be based on the January's RPI.
The all index RPI was 4.8% in December, so most probably January should be close to that number. So the increase will most likely be in the 4.5%-5% range.

But of course, if you do renew then the rent will be freely re-negotiable in the new agreement.

DVardysShadow

mystra wrote: »

Can someone also tell me what the law is regarding how much notice is giving for a rent increase?

I'm reading through the contract, and the wording is confusing me


So say i DID want to renew... how much notice do they have to give me of the increase in price (as in the figures not just saying it's going up)

The renewal rent is what is agreed as part of the process of renewing. That clause provides a contractual escalator if by some accident you went periodic. It is part of the old agreement which has been s21'd. As such, if you did renew, the clause would never be invoked, the increase would be built into the new agreement

mystra

DVardysShadow wrote: »

The renewal rent is what is agreed as part of the process of renewing. That clause provides a contractual escalator if by some accident you went periodic. It is part of the old agreement which has been s21'd. As such, if you did renew, the clause would never be invoked, the increase would be built into the new agreement

so they have no obligation to let me know how much technically until they feel like it

OH has got very annoyed and rang the estate agents again himself, not heard from him so I'm guessing he has nothing either. What a joke. Someone needs to seriously take a look at how letting agents run their business to put their tenants at the disadvantage

I honestly don't know what to do for the best

G_M

Goodness knows why you have asked them!

Either you sign a new Fixed Term contract (which you said you wanted to avoid) in which case any rental amount can be discussed, requested, refused, accepted, agreed.

Or you move to a Periodic monthly Tenancy, which is based on your existing contract. In that case the rent increase shown in the contract can be imposed. Whether the LL/agent (who clearly are as in the dark as you about this!) take the necessary steps is up to them, but by asking, you have effectivley pushed them into raising your rent!

To activate this clause and increase the rent, Shelter says:



"After any fixed-term expires, your rent can only be increased if:

• your tenancy agreement contains a procedure for rent increases (this is unusual) that your landlord follows
• your landlord gives you written notice of the proposed increase
• your landlord gives you written notice of making a change to the terms of your tenancy.

The amount of notice your landlord gives you before the rent increase takes effect must be at least one rental period (usually one month). "

Had you kept quiet, moved to a Periodic Tenancy, and continued paying the original rent, you'd have been fine unless/untill the LL/agent wrote to you with a months notice of a rent increase.