Annual increases in rent on our flat

joemcd

Hi folks,

Wondered if I could gauge some opinion on this please...

My partner and I moved in to a new property last year, and we've just come round to the one year mark, where we've been asked if we'd like to renew our tenancy.

We'd like to, partly because the costs and fees of moving in were sooo huge, that it would dent us if we were to move onwards to another property.

We live in a 1 bed property in South West London. Combined we pay £1350 per month.

Our landlord has proposed to increase the rent with this new tenancy by 3%. He has said that in the past 12 months, it would appear that rents of comparative properties have increased based on research he has made by speaking to local agents and looking online at Zoopa/Primelocation.

As I said, we have little choice due to the cost involved in moving out and finding another property, plus we are happy here - but we're disappointed as this landlord (sadly for us) seems to be very "on it" and unlike other landlords we've previously had, likes to review the rent annually and obviously that never ends well for London tenants.

We responded agreeing but asking if we can commit to an 18 month tenancy term, rather than 12 months and he responded agreeing, but stating that will involve a rent increase for 2016 too - and that he suggests adding a further 3% on to the newly revised rent price for 2015.

So all in all, after these two proposed increases... we'd be looking at paying an extra £82.22 a month from 2016.

Tell me to suck it up and stop moaning and that we're all in this awful situation together with London rents... or does it seem like a steep increase to you guys too and is there any evidence showing how rents have increased anywhere, so I know these figures haven't been plucked from the sky?

Thanks all x

pyueck

You can always refuse to sign a new contact and continue on the old terms going forward. However the landlord could give you notice, but they have to give you two months notice.

The rent increases seem fairly reasonable, however that doesn't mean you can't negotiate lower. By staying in the property you are saving the landlord the hassle and costs of finding new tenants with the potential risks that brings.

It's up to you how you proceed, you can either:

a) pay up
b) negotiate down and sign a new contract
c) refuse to sign anything new and keep paying same rent but accept you can be evicted in two months.

Pete9501

Ye gods, does it really cost £17,000 a year in rent for a one bed flat in SW London :eek:

The 4 bed 'newish' town house next door to us in Gosport goes for £950 a month.

pyueck

Pete9501 wrote: »

Ye gods, does it really cost £17,000 a year in rent for a one bed flat in SW London :eek:

The 4 ded 'newish' town house next door to us in Gosport goes for £950 a month.

Pete that is not really very helpful. We could have the whole debate about London house/rental prices but sure that won't help the poster out much.

lisyloo

3% per annum seems quite reasonable to me.

Ye gods, does it really cost £17,000 a year in rent for a one bed flat in SW London

We pay £18K for a 1 bed including water and service charges (but not council tax, electricity) - we are in zone 1 though (just).
So yes - this is what is costs to live in one of the most vibrant and thriving cities in the world (if not THE most).

I'd actually be quite pleased if I was offered 3% and I'd bite his arm off.

AdrianC

joemcd wrote: »

We responded agreeing but asking if we can commit to an 18 month tenancy term, rather than 12 months and he responded agreeing, but stating that will involve a rent increase for 2016 too - and that he suggests adding a further 3% on to the newly revised rent price for 2015.

What does your existing contract say about rent increases?

As has been said, you don't HAVE to sign anything new, let alone commit for 18 months. When your current fixed term expires, you have the right to go onto a statutory periodic tenancy, indefinitely. To end that, you give one month's notice, the landlord gives two.

is there any evidence showing how rents have increased anywhere, so I know these figures haven't been plucked from the sky?

Have a look at advertised rents for similar places. Ask him to show you the places he's basing his figures on.

Simple question - if you were to move out, would you be paying ~3% more rent for a similar place?

ognum

joemcd wrote: »

Hi folks,

Wondered if I could gauge some opinion on this please...

My partner and I moved in to a new property last year, and we've just come round to the one year mark, where we've been asked if we'd like to renew our tenancy.

We'd like to, partly because the costs and fees of moving in were sooo huge, that it would dent us if we were to move onwards to another property.

We live in a 1 bed property in South West London. Combined we pay £1350 per month.

Our landlord has proposed to increase the rent with this new tenancy by 3%. He has said that in the past 12 months, it would appear that rents of comparative properties have increased based on research he has made by speaking to local agents and looking online at Zoopa/Primelocation.

As I said, we have little choice due to the cost involved in moving out and finding another property, plus we are happy here - but we're disappointed as this landlord (sadly for us) seems to be very "on it" and unlike other landlords we've previously had, likes to review the rent annually and obviously that never ends well for London tenants.

We responded agreeing but asking if we can commit to an 18 month tenancy term, rather than 12 months and he responded agreeing, but stating that will involve a rent increase for 2016 too - and that he suggests adding a further 3% on to the newly revised rent price for 2015.

So all in all, after these two proposed increases... we'd be looking at paying an extra £82.22 a month from 2016.

Tell me to suck it up and stop moaning and that we're all in this awful situation together with London rents... or does it seem like a steep increase to you guys too and is there any evidence showing how rents have increased anywhere, so I know these figures haven't been plucked from the sky?

Thanks all x

Have you checked what you can get of a similar standard in your area, if the rent is the same as similar properties then I would say it's a fair rent.

Have you or your partner had any kind of pay rise this year, if so how much?

There is a quandary for LLs, raise the rent a small amount each year or wait five years and put it up 15-20%. Which ever way you choose to do it the tenant will feel ripped off!

If you like living there then so will someone else and that is what the LL is banking on, it supply and demand. I would stick with the 12 month lease and renegotiate next year when you can judge inflation and RPI of course it's a gamble if rents shoot up again.

AdrianC

ognum wrote: »

I would stick with the 12 month lease and renegotiate next year when you can judge inflation and RPI of course it's a gamble if rents shoot up again.

RPI for Jan 2014 was 252.6. For December 2014 (most recent available), 257.5

So - for those 11 months, £1350 growing by RPI would have become £1376.18.
Annualise that, and you get £1378.36
3% is £1390.

So is 3% an unfair rise? No, not really. Yes, it's a little bit more than inflation, but since when did the London property market follow the RPI...?

jayss

Mine is going up 5.5% in April in east london. Highest increase I've had in 10 years of renting.
The cost of moving is as much as the raise and I've not seen anything I like for less yet(though early to look).

Not much help just letting you know you're not alone.

Rambosmum

Do you like the flat?
Does it meet your needs?
Would it cost more than the increase to move?
Could you get a flat that equally suits your needs for less than the increased rent?
Is the LL any good (do you have a gas safety certificate, has your deposit been correctly registered, does he do repairs in a timely manner and leave you in peace the rest of the time?

jonathanrolande

Sorry to say landlord holds the cards. Try to negotiate but in the end if you want to stay you have to pay whatever they ask.