What is a fair rent increase? Help much appreciated.

DeanNash

Hi guys. I'm new to this so I hope I'm not breaking etiquette or anything like that. I joined this site to ask a question. Me, my wife and daughter have privately rented for a long time. In our second property which we were living in for over two years, we never saw an increase in rent. We moved into our current residence three years ago next month. Every year for the last three, the letting agents have told us that the rent is increasing by £10 PCM. Starting at £560 PCM, we are now expected to pay £590 PCM. I've ignored it for the last two years and just accepted it, but I did say to myself that if it went up by the same amount again this year I wouldn't accept it. Can anyone here advise me of my rights please? I'm self employed and my wife is full time employed but money is tight. An extra £120 a year doesn't seem much, but after three years of it I find it a little excessive. I understand that landlords need to make money but we've never given them any problems and we've always been good tenants. Thanks in advance for your help guys. I will be contacting the CAB but wanted to test the water here first. Thanks for reading.

[Deleted User]

You need to post what type of tenancy you have, also review your contract to see if you have agreed to a potential rental increase.

Here is an article from the CAB regarding rent increase:

http://www.adviceguide.org.uk/england/housing_e/faq_index_housing/faq_housing_private_landlord_wants_to_raise_rent.htm

In some cases, you can appeal against an increase if you think the amount of the increase is too much or if you think the notice of the increase was not issued correctly. If you start to pay the increased amount this means you have agreed to it and you cannot appeal against it.

Also see: https://www.gov.uk/private-renting/rent-increases

My personal opinion is a £10 per month increase every year is more than reasonable.

princeofpounds

You have the right to negotiate, and leave if you find a better value home elsewhere.

When determining what is 'fair' level of rent, take a look at what you could get for the same money close by. If you can do better, then that is the time to say no to the landlord and see what happens. Often they will back down because there is no point losing a tenant for an extra 120 quid a year when it might cost that much to have the property empty for a week or so.

But you must grow some backbone and be commercial.

As for rights - the level of rent you agree is fixed for the fixed term you sign a contract for. Once that passes, the LL can ask you for more rent. You can broadly speaking:

- accept and start paying a higher amount. Possibly a negotiation somewhere lower than the original offer.
- leave as per the normal rules
- refuse and wait for a section 13 notice (officially raising the rent) or a section 21 (seeking to terminate the tenancy)
- refuse and the landlord backs down

Market forces!

princeofpounds

Oh yes in theory there is a rent assessment procedure too. But quite frankly it hardly ever gets used because outside the fixed term the landlord can terminate the tenancy within a couple of months anyway if he doesn't like the decision. So whether the tenancy continues or not still effectively comes down to commercial negotiation.

ognum

I can tell you are very frustrated by this but the landlord is running a buisness.

If you can look on Rightmove at comparibles in your local area, look at property similar to the one you are in and see how much the rent is. If your property appears to be more expensive that the rest then talk to the letting agent and discuss the other properties that are cheaper than yours.

IF however property is the same or less expensive then the increase is probably justified.

£10 is less than 2% increase which is in line with the cost of living for the last few years, have you or your wife had a pay rise in the last 2 years?

As a landlord I would rather keep a good tenant who pays on time than have the hassle of looking for new and untried tenants who may default and all the other nasty stuff that a few tenants do. So it's worth a conversation if you have facts to back it up.

On the other hand the landlord knows it will cost you more than £120 pounds to move!

Hope this helps

G_M

Or read this post:

Rent increases (how and when can rent be changed)

£10 a month? On a £470 rent? That's 2%. Not unreasonable.

What are comparable rents for similar properies in the are?

If you refure, and leave, could you find somewhere cheaper? Could the landlord find a tenant willing to pay more?

.........

G_M

princeofpounds wrote: »

Oh yes in theory there is a rent assessment procedure too. But quite frankly it hardly ever gets used because outside the fixed term the landlord can terminate the tenancy within a couple of months anyway if he doesn't like the decision. So whether the tenancy continues or not still effectively comes down to commercial negotiation.

And inside the fixed term the rent is subject to the terms of the tenancy agreement.

_Andy_

"I will be contacting the CAB" - over a tenner a month?
jeez

G_M

_Andy_ wrote: »

"I will be contacting the CAB" - over a tenner a month?
jeez

Yes... and no....

If the issue is whether the rent rise is legal or not, then yes, CAB could advise. Though the links posted above outline the law relating to rent increases, so providing the OP trusts those links, no need to go to CAB

If the increase is legal (ie because the 12 month fixed term is up and the LL is offering a new 12 month fixed term at a new rent, as I suspect), then the issue is whether £10 is fair: and that would be just wasting CAB time.

Reformed_Spender

I am landlord so this might sound strange but if I were you I wouldn't accept it and I would tell them you will serve notice if your rent is increased. If you leave it will probably cost the landlord a minimum full month's rent in placing a new tenant so that £10 a month extra he/she gets will take 47 months to pay back!

Even if you want to stay and they call your bluff you could change your mind a few days later and accept the increase. There is no better tennant than the good one currently there.

However as someone already mentioned you do need to asses if your rent is substantially lower compared to similar properties and the landlord could get much higher from someone else, in which case I would then just pay the increase.