Huge rent increase - is this legal?

Onawingandaprayer

My daughter and her partner are renting a flat on an assured shorthold tenancy agreement with a private landlord. It's a one year contract but with a six month break clause.
Their 1st year's tenancy agreement ends on 23rd March 2015 and contractually the landlord and the tenants have to give 2months notice.
On 11th February, they discovered their landlord wants to increase their rent by a huge 30%. She has said they have first refusal but hasn't officially offered them this new price in writing. They have since discovered, without any warning to them, that the property has been listed online (Winkworths, Foxtons and John D Wood and Co) at the new price, a To Let sign has been put up outside and prospective tenants are being shown around. Is this all legal? (There is no mention of renegotiating of rent in their contract.)

pyueck

The landlord is able to offer whatever rent they like, however your daughter does not have to accept.


At the end of the tenancy unless the tenancy is renewed the contract will role on with the same terms. The landlord must give two months notice, the tenant one. Any notice by the landlord must be via a valid S21.


The landlord can advertise the property, however this doesn't mean the tenant needs to move out, unless a valid S21 has been served and the two months notice passed, even if a new tenant is found. Even after this if a tenant still does not move out only a court order can evict them.


With regard to the visits, see the tenancy agreement, has any notice actually been served. The landlord cannot do any viewings without giving 24 hours notice, and even then a tenant can refuse if they wish. If the landlord is doing viewings without permission, this is harassment and you should tell the landlord this and if it continues contact the police and change the locks.

molerat

They do not have to accept the rent increase, at the end of the fixed period their tenancy will carry on at the old rent on a month to month basis. They have the option of accepting the new rent and new contract or receive a S21 two months notice. How are prospective tenants being shown around ?

anselld

All legal so far assuming viewings were correctly notified.

Has daughter been served s21 notice?

pyueck

anselld wrote: »

All legal so far assuming viewings were correctly notified.

Has daughter been served s21 notice?

This is not correct in my opinion.


As I understand the law, if there is no contractual clause to do viewings then there is no legality to these viewings. If there is a clause the tenant must be given 24 hours written notice and can refuse them.


BTW this comment will probably lead to a long debate, other people disagree with me, up to you to decide who is right.

pmlindyloo

pyueck wrote: »

The landlord is able to offer whatever rent they like, however your daughter does not have to accept.


At the end of the tenancy unless the tenancy is renewed the contract will role on with the same terms. The landlord must give two months notice, the tenant one. Any notice by the landlord must be via a valid S21.


The landlord can advertise the property, however this doesn't mean the tenant needs to move out, unless a valid S21 has been served and the two months notice passed, even if a new tenant is found. Even after this if a tenant still does not move out only a court order can evict them.


With regard to the visits, see the tenancy agreement, has any notice actually been served. The landlord cannot do any viewings without giving 24 hours notice, and even then a tenant can refuse if they wish. If the landlord is doing viewings without permission, this is harassment and you should tell the landlord this and if it continues contact the police and change the locks.

See bolded.

This is true unless the contract states 2 months notice by the tenant as regards a periodic tenancy continuing after the fixed term.

Have a careful look at the tenancy agreement to see if it refers to a periodic tenancy continuing after the fixed term.

http://england.shelter.org.uk/get_advice/private_renting/ending_a_tenancy/ending_a_periodic_agreement

G_M

There are 3 seperate but related issues:

1) What happens at end of fixed term. See

Ending/Renewing an AST

2) Viewings. What does the contract say? Plus see this argumentative thread here!

3) how and when can rent be changed. See

Rent increases

Onawingandaprayer

Thanks everyone for giving real food for thought. A supplementary question: at what point are they legally obliged to inform the landlord they do not accept the new rent? On the day the tenancy agreement ends?

Ps. There is no section 21 in the contract

pyueck

Onawingandaprayer wrote: »

Thanks everyone for giving real food for thought. A supplementary question: at what point are they legally obliged to inform the landlord they do not accept the new rent? On the day the tenancy agreement ends?

Ps. There is no section 21 in the contract

You don't need to tell the landlord, you only will accept it if either a) you agree with the landlord to the increase in writing or by starting to pay the increased rent or b) you sign a new tenancy agreement.


When the tenancy ends it will continue with all the same terms of a periodic tenancy.


A section 21 is not in the contract it is a form the landlord must correctly give to a tenant to start the eviction process in instances such as this.

G_M

Onawingandaprayer wrote: »

Thanks everyone for giving real food for thought. A supplementary question: at what point are they legally obliged to inform the landlord they do not accept the new rent? On the day the tenancy agreement ends?

Ps. There is no section 21 in the contract

If they do not accept the increase, they can

* move out on the day the fixed term ends without notice. See my link above.

* stay on a SPT at the same rent. But the LL might take action subsequently either to evict them, or to increase the rent. See my links above

If they DO wish to inform the LL, and/or negotiate, they can do this at any time. If they wish to stay, then maintaining decent relations may be important, so a compromise might be wise to keep both sides happy.

booksurr

Onawingandaprayer wrote: »

Thanks everyone for giving real food for thought. A supplementary question: at what point are they legally obliged to inform the landlord they do not accept the new rent? On the day the tenancy agreement ends?

Ps. There is no section 21 in the contract

there is no legal obligation to tell the LL anything. I take it you have not read GM's links yet as all the info you require is in them!

tenancy continues until either a) tenant gives valid notice and moves out or b) LL obtains a court order after having served a S21 notice (the word is notice, not contract clause)