Just moved a month ago - housing association now want to increase rent by 25% HELP!

Jonny_Debt

Hi

We moved into a new build flat about a month ago. It is through a housing association but our contract is an 'open market' rent. We have settled in and love the flat. I got a phone call from the HA yesterday saying that they had made a mistake and that rent they are charging is wrong and should be 25% more as they had given us the 'discounted rent' rate! They said the only options were for us to move into another flat in the property (which we don't want to do as we specifically chose this flat) - or pay the extra each month.

Someone is coming round from the HA to talk to us about it this evening. Just wanted to get any advice from people here first before I speak to her.

We signed a 12 month contract.

Thanks for your help

csnann

If you have a signed contract, I don't think they can increase the rent until it ends unless you consent to the change.

Jonny_Debt

I have a copy of the contract here with me and it does say: "We may increase or decrease the rent at any time during the first year of this tenancy by giving you at least one months notice in writing" We will not increase the rent to a figure higher that that which would have been set by a Rent Assessment Commitee"

Does this mean we don't have a leg to stand on?

Thanks for your help

csnann

Actually you might be out of luck then, it looks like your contract says they can increase the rent. I have never heard of a contract with that in, it must be new thing for Housing Assossiations to do. I can't imagind it being valid in a private let.
On the plus side, you will have security of tenure, which a private tenant wouldn't have.

princeofpounds

I'd be doubtful if it is valid at all - being a housing association doesn't exempt you from unfair terms in consumer contracts.

This will be especially the case if they claim to be able to raise rent during a fixed period. Could they raise it to a million pounds a month and with the tenant not permitted to leave?

That is a significant imbalance of power, one of the main things that makes a clause invalid, if I've ever seen one.

First time I've come across such a clause though.

Edit to add: OFT guidance doesn't cover this directly, but it seems highly likely you cannot raise rent in a fixed term no matter what contract says.

richardw

princeofpounds wrote: »

... unfair terms ....

.....exactly.

Jonny_Debt

Thanks all - I really appreciate your feedback. I feel sick with worry and don't want to have to move out of a flat that we have just moved into. We have purchased furniture to fit the flat and only moved out of our old flat to save money. Such a nightmare - I was hoping that being a Housing Association, the tenancy would be more secure.

I will see what they have to say this evening but will not agree to anything with them until I get some sort of legal advice.

Once again - thanks.

ValHaller

princeofpounds wrote: »

I'd be doubtful if it is valid at all - being a housing association doesn't exempt you from unfair terms in consumer contracts.

This will be especially the case if they claim to be able to raise rent during a fixed period. Could they raise it to a million pounds a month and with the tenant not permitted to leave?

That is a significant imbalance of power, one of the main things that makes a clause invalid, if I've ever seen one.

First time I've come across such a clause though.

Edit to add: OFT guidance doesn't cover this directly, but it seems highly likely you cannot raise rent in a fixed term no matter what contract says.

I agree. It is a full tenancy rather than shared ownership and normal tenancy law would apply just as it would to a private let AIUI.

I think I would be checking out how long it is before they can raise the rent legally and sticking with that - then looking at how it might play out at a Rent Assessment Committee.

shop-to-drop

Maybe worth a visit to citizens advice. You may just be able to get a few more months at lower rate with good legal advice and backing. Worth a try.

highguyuk

Forgive my terminology, but I believe all HAs have to apply to the rent ombudsman to increase rent. You can then appeal this decision directly to them.

DominicJ_2

HighGuy
I think thats just specific fair rent homes rather than all HA stock