Help - Rent increase rules

thoughtful_fox

I need some advice on rent increase rules please.

In November letting agent visited for a regular inspection and told the other tenant that they are increasing the rent starting end of Dec. She told them we're not happy with that and they said there was nothing we could do.

I am aware that they can increase the rent if we agree to it, but we have not agreed.

They have not served written notice under Section 13. Just a verbal "the rent is going up from December".

The tenancy agreement says they will increase the rent every year, by July RPI. They have never done so, and are now claiming that as grounds to arbitrarily increase the rent by £25.

I would rather that the rent was increased using Section 13 notice or by the rules of the tenancy agreement (by last July RPI) and in writing. Otherwise if we agree to the increase it can be increased again whenever - while the other 2 ways mean we're protected for 12 months.

Can they suddenly decide to enforce the agreement at this stage?

Can they claim for the increases from previous years they didn't get, or have they waived that right by not asking?

I am worried that if I don't start paying the increased rent they will say I'm behind on rent, but actually we never agreed the increase. I don't want to affect my credit score!

Thanks

G_M

Read

Rent increases (how and when can rent be changed)

If you've not eceived anything in writing, just keeppaying the original rent.

They do no need to use a S13 if the tenancy allows for increases.

They cannot back-date increases. This year, they can only increase the rent by the annual amount allowed for in the agreement - they cannot use previous unused amounts.

Please quote the exact wording in the tenancy agreement relating to rent increases.

jjlandlord

thoughtful_fox wrote: »

The tenancy agreement says they will increase the rent every year, by July RPI. They have never done so, and are now claiming that as grounds to arbitrarily increase the rent by £25.

You should indeed read exactly the clause in your agreement.

If it just says that the rent "will increase every year by July RPI" then that what happened and arguably you are in arrear since you do not seem to have paid it.

kinger101

Does the £25 reflect July RPI, which was 2.5%

How much is the rent likely to be in your new place? The one you may have move to when the LL decides to evict you for not agreeing to a rent increase?

thoughtful_fox

Thanks for the replies.

G_M I read your link. There is a clause in the original tenancy agreement specifying how and when the rent can be increased, so you are saying the landlord can only change the rent in accordance with that clause - i.e. not by any other amount? Surely that is very restrictive on the landlord?

The tenancy has already become a periodic tenancy.

The clause in the agreement:
"If this tenancy is continued or run on as a periodic tenancy then the Rent will increase each year from the first Rent Due Date more than 364 days after the commencement of the Term, 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 the renewal."

Do they need to request this in writing?
As I said we have only ever paid the original rent stated in the agreement. I have only just become aware of this clause when looking for rent increase provisions in the agreement.

thoughtful_fox

kinger101 wrote: »

Does the £25 reflect July RPI, which was 2.5%

How much is the rent likely to be in your new place? The one you may have move to when the LL decides to evict you for not agreeing to a rent increase?

No £25 is a bit more than 2.5%. I'm not saying I won't pay the increase. I would like the increase to be requested in such a way that another increase cannot be requested for the next 12 months. This could either be in writing stating the terms of the rental agreement (RPI) or in an S13 notice saying how much they want to increase (£25).

I'm not happy to agree to random verbal statements of increase as these could happen as often as the letting agent likes.

jjlandlord

thoughtful_fox wrote: »

I'm not happy to agree to random verbal statements of increase as these could happen as often as the letting agent likes.

They can request as often as they like, and they can whether they use the clause or a s.13 notice, but you can equally accept or refuse.

As for the rent increase clause: It is very badly drafted and I won't go into whether it has any value at all.
Nevertheless it states when the rent should increase. Therefore, and as per my previous post, if we assume it is valid then the rent increases automatically without any further notice from the landlord.

G_M

Assuming he relies on the clause, the LL can use the RPI increase this year as the basis for the rent increase this year on the rent you were paying last year.

I don't believe the LL can use the RPI increase this year as the basis for the rent increase this year on the rent you would have been paying last year if he had increased the rent, which he didn't.

There's a similar discussion here:

http://www.landlordzone.co.uk/forums/showthread.php?65624-Rent-Review-Tenant&highlight=rent+increase

jjlandlord

G_M wrote: »

I don't believe the LL can use the RPI increase this year as the basis for the rent increase this year on the rent you would have been paying last year if he had increased the rent, which he didn't.

But, leaving the bad drafting aside, it is not up to the landlord to increase the rent. The increase is automatic and OP is in arrear.

The landlord seems to have overlooked that, so the proposed increased is rather reasonable.

kinger101

This is a tricky one in my opinion, and you'd probably won't get a definitive answer without involving the courts, which is in neither your interests.

The clause to increase the rent is included in the contract, but up until now, it appears to have been waived. At the very least, it looks like you're probably obliged to pay a 2.5 % increase now, and could by virtue of the contract, face another July 2015 RPI increase in September (if I understand the nebulous clause correctly).

There are a number of possible reasons why the LL did not implement the clause exactly per the wording of the contract historically. Perhaps it was a goodwill gesture. Perhaps they didn't think the rental increase reflected the market rent.

I just think you need to be aware that you have signed a contract which provides a mechanism for rent increases, and you may be staring a gift horse in the mouth by suddenly objecting to the LL's "arbitrary" to implementing this increase, which you have benefited from in the past. If the rent is raised again in September, its because YOU agreed to this when you signed the contract. Given past performance, I very much doubt it will be.

[Deleted User]

I have lived in this house for nearly four years.., the LL well, I find him a bit of a slippery eel. I've done a few things to make the place worth more.., and was very upset when after the first year tenancy agreement he put the rent up by £25 (after one year). But he hasn't put the rent up since and I KNOW that I'd have to pay at least £100 more to rent an equivalent in this area. To be honest, I'd be lucky to find a place at that price.., I could end up paying £200 more. Rents have gone up by silly amounts in this area.

Even so LHA is still needing to be topped up each month.

So in terms of affordability for me, the place is expensive, but in terms of affordability against other 3 bed properties in the area.., its very very cheap.

So I've got a place with issues, badly needing the boiler being replaced, the electrics have to be seen to be believed, the flat roof let in a waterfall (was repaired), its drafty, extension has no insulation so its freezing, floors are warped blah blah.., but its cheap relative to other properties. So I'm lucky. Yes, I'm afraid I am.

You need to keep this in perspective. Have a discussion with the LA.., saying (if you will) that you will pay the £25 increase but you need it in writing that the increase will be for a full 12 months and not increase again in that 12 month period. They may do it, they may not. Measure this up against the costs of moving. As you are on a periodic tenancy, they just have to issue a S21 with two month's notice to leave.

My LL is selling this house.., and I'd give a lot to stay. Moving is going to cost me a fortune, new deposit first month's rent in advance, moving costs, time spent packing up and cleaning, high stress levels, involve changing schools etc etc. and it will be almost impossible to find a LL who will accept a benefit tenant. We are lucky.