Rent increase

cazkenton2003

Hi all, first post!

I'm a single mum with 2 girls. We moved into this property just 10 months ago with an Assured Shorthold tenancy for 1 year. The rent was agreed at £750 per calendar month.
I claim Income Support and Housing Benefit and did the pre-tenancy determination before I gave in my notice at the old place. It came back at £736, so we accepted the aggreement and moved in.
However, my contract is up for renewal at the end of May, and L/L wants to increase the rent to £800. Plus £100 Estate agents fees etc

I know in my heart of hearts, we will have to move again. Simply cannot afford to pay the extra £50 a month. Doesn't sound like much but got a lot of debt to pay off.

The housing benefits won't pay me anymore money as the rent officer told me my rent 'was in line with other rents in the area'
So what do I do now?

Just getting settled in here and done so much work to the place with L/L's permission. Just seems so unfair. Any advice greatly appreciated.

Thanks

littlemissmoney

Tell the LL you can only afford £750, so if he increases it you will have to move (the truth!). He might just be trying it on. If you are a good tenant (are you?) he is unlikely to want to loose you and risk voids, re-let costs, etc etc.

Plus you DO NOT have to sign another fixed term aggrement and pay any admin/renewal fees. Do not pay the £100. It's a con by letting agents to make money. Your tenancy will automatically become a periodic tenancy, nobody needs to do anything. One word of caution about this though, just check you haven't been issued with a section 21. If you have, what I have just said doesn't apply.

Gorgeous_George

If £736 was in line with other rents in the area 10 months ago, maybe it is not unreasonable to increase the rent by 6.6% and maybe HB could meet some of the increase.



GG

cazkenton2003

Thanks for your advice--it's most helpful

However, I don't want to sound too negative here, but a couple of other points to consider.

I used up all my savings to move in this place. I can claim the deposit back when we move but I haven't got any cash to put 4 weeks rent up front, and I don't have any cash to pay for removal costs.
Have used the Social fund loans but am maxed out on them. Owe them £1,000 paying it back £8 week out of Income Support.
Maxed out on the credit card, can't get a loan and barely scraping by on my overdraft as it is.
I'm privately renting and not on the council list...are they still entitled to help me?
Don't want to end up on the streets.

What is a section 21? Something in my tenancy agreement?

littlemissmoney

cazkenton2003 wrote: »

What is a section 21? Something in my tenancy agreement?

It's probably a seperate piece of paper that you may have been given when you started the tenancy, or may have been sent since. It should be clearly labelled as a Section 21 Notice Requiring Possession. It means the landlord can get the property back at the end of the fixed term without giving you any notice because (technically atleast) he has already served the required 2 months notice.

Guy_Montag

Whenever my landlord tries to put up the rent, I explain politely that I'd rather move than pay more. Generally they don't like the hassle of finding a new tenant.

That tends to shut them up. Secondly the £100 agent's fee is !!!!!!!!. If they insist on re-newing the contract, ask them for a break down of the fee. You may be able to reclaim the fees if they are deemed "unreasonable" by a court - but just the hint of this may be enough to put the agent off.

Regardless of the outcome, get the rent officer to re-assess the rent, even if what you pay doesn't change other rents in the area may have, & you might end up getting the full £750.

epz_2

regardng moving costs, i would guess you could get a van hired for a day for about £14, if you know a few burly lads then most likely a bribe of a case of lager and thats it done.

as to paying the rent in advance, as i understand it you pay it in advance anyway every month, its just the 1st month was the one you had to stump up that and the deposit, assuming you get the deposit back then it should mearly be a case of handing it and the rent you pay to the new landlord as long as you time it correctly.

that said in the current climate of every numpty who has watched one of the numerous "how to make a fortune by borrowing a load of cash from the bank and letting the market go up" programs is a landlord so there cant be that big an issue finding a new place, i would look for alternatives and supply evidance that £750 rents an equivelent property.

Alleycat

You could try negotiating with your landlord regarding the rental increase. Have you informed HB of the potential rent increase, as they usually expect there to be a rise every twelve months.

However, if your landlord isn't prepared to negotiate and HB come back saying that they will not pay more HB, then you can apply for Discretionary Housing Benefit. Each local authority has a 'pot' of money available for this purpose and whilst it may be running dry now, in April as its the new financial year it will be topped up again.

cazkenton2003

I've tried negotiating with the Landlady and I told her I could only go as high as £760.
She does not accept this. She wants £800.As we live above her shop, I guess she has to compensate for her mortgage and shop lease etc.

I have told HB office about the impending rise in May. They told me I need to apply for another Pre-tenancy determination, also show new unsigned contract plus letter from Landlady.
Just hope and pray that it comes back with a 'reasonable' figure.

Thanks for all the advice guys...you've all been great!

barnaby-bear

epz wrote: »

regardng moving costs, i would guess you could get a van hired for a day for about £14, if you know a few burly lads then most likely a bribe of a case of lager and thats it done.

as to paying the rent in advance, as i understand it you pay it in advance anyway every month, its just the 1st month was the one you had to stump up that and the deposit, assuming you get the deposit back then it should mearly be a case of handing it and the rent you pay to the new landlord as long as you time it correctly.

that said in the current climate of every numpty who has watched one of the numerous "how to make a fortune by borrowing a load of cash from the bank and letting the market go up" programs is a landlord so there cant be that big an issue finding a new place, i would look for alternatives and supply evidance that £750 rents an equivelent property.

http://england.shelter.org.uk/advice/advice-3004.cfm
Have you looked for a bond scheme, who will stump up the bond for you?

machofairy

Look around your area... is there a lot of similar property going for around £750? If so, then do not accept the rent increase.

Your landlord will realise she will not easily find a new tenant at £800 and having no rental income for one month is the same as allowing you stay there at £750 for 15 months! Ask her to do the maths!