Excessive House Rent increase?

oneswoof

My landlord has written to give notice of a 7% increase in monthly rent. I am on a 'rolling contract' and have been for two years.
7% seems excessive. Any thoughts?

G_M

Read:

Rent increases (how and when can rent be changed)

Also compare rents locally for similar properties.
* Could the LL easily find another tenant at the new rent if you left?
* Could you easily find a new property at the old rent if you left?

R_P_W

Why does it seem excessive? How many years has it stayed the same?

paddyrg

Our landlord wanted to put the rent up last year - we declined their offer to pay a higher rent, and they realised that we'd been good tenants, and leaving the place empty for a month or two to re-let would take years to recover the lost extra rent. Win-win. If you're in the position to, feel free to decline, see if you can compromise.

jjlandlord

Note that if that 'notice' is indeed a formal notice, so-called s.13 notice, then it is binding unless you appeal to your local Rent Assessment Tribunal (or whatever it is now called): This means that this is not an offer and your rent is increasing.

If it is just a letter then, yes, it is just an offer and you would not be in arrear by not paying the proposed new rent.

G_M

jjlandlord wrote: »

Note that if that 'notice' is indeed a formal notice, so-called s.13 notice, then it is binding unless you appeal to your local Rent Assessment Tribunal.

assuming the tenancy agreement is silent on the subject of rent increases. Or does not limit increases to a certain amount which is lower than is being now demanded.

jjlandlord

G_M wrote: »

assuming the tenancy agreement is silent on the subject of rent increases. Or does not limit increases to a certain amount which is lower than is being now demanded.

Doesn't matter is tenancy is a statutory periodic AST.

G_M

The terms of a SPT, including rent (and rent rises) are the same as the terms of the original fixed term AST.

See also Housing Act 88 S13 1 b

Only the requirements for ending the tenancy differ.

jjlandlord

Yes, but the landlord may in any case use s.13 to increase the rent if the tenancy is a statutory periodic AST.

So that's 3 things for oneswoof to check:
1. whether notice is a s.13 notice,
2. whether tenancy is a statutory periodic AST,
3. whether there is a rent increase clause.

G_M

I nearly agree.

jjlandlord wrote: »

Yes, but the landlord may in any case use s.13 to increase the rent if the tenancy is a statutory periodic AST. but does not have to.

So that's 3 things for oneswoof to check:
1. whether notice is a s.13 notice,
2. whether tenancy is a statutory periodic AST,
3. [STRIKE]if not, [/STRIKE]whether there is a rent increase clause.

As I said above, the terms of the SPT, including rent (and rent rises) are the same as the terms of the original fixed term AST. (HA S5 3 e).

So if the original tenancy agreement makes allowance for rent increases, rent can be increased (without a S13, or mutual consent).

And similarly if the original tenancy agreement makes allowance for rent increases, the rent can not be increased other than in line with siad clause (ie not at a higher rate).

jjlandlord

Ah yes, correct: If there is a rent increase clause, then obviously the landlord may use it.

But...

G_M wrote: »

And similarly if the original tenancy agreement makes allowance for rent increases, the rent can not be increased other than in line with siad clause (ie not at a higher rate).

No, that's what I'm trying to say: If the tenancy is a statutory periodic AST then the landlord may use s.13 in any case.