"RPI" Rent Increase

JohnnyWalker2001

Hi there, my girlfriend and I moved into our flat in August 2014. Our letting agency (Winkworth) got in touch this morning to let us know that the landlord is happy to keep us on as tenants, but with an increase "in line with 3% RPI" (for us, an additional £44 a month).

Has there really been a Retail Price Index increase of 3% in the past year? How have they gone about calculating this figure?

Thanks!

eddddy

There was a recent similar thread: https://forums.moneysavingexpert.com/discussion/5257423

Perhaps a logical figure to use would be 1.1% as shown here: http://www.ons.gov.uk/ons/datasets-and-tables/data-selector.html?cdid=CDKQ&dataset=mm23&table-id=2.2

But I guess you need to check exactly what it says in your tenancy agreement, to find out what number they are using.

libf

You'll need to ask them how it's calculated. Sometimes it's done based on one figure from a certain month in the year, or the largest in the previous 12 months, or blah blah blah.

Immers7

Office for National Statistics Website.

Lets be honest, your landlord doesn't need to quote anything to increase your rent.

Innys1

Immers7 wrote: »

Office for National Statistics Website.

Lets be honest, your landlord doesn't need to quote anything to increase your rent.

Exactly.

I assume it was a 12mth tenancy. After the 12mths are up, he can charge what he likes. If the OP doesn't want to pay the new rent, the landlord will ask them to vacate the property and are in their rights to do so.

G_M

If the LL/agent is proposing you sign a new (fixed term) tenancy agreement, he can put any rent he wants in the new agreement.

You can then either
* agree and sign
* refuse and leave
* ignore, and move to a SPT at the old rent
* negotiate and try to agree a lower rent on the new agreement.

See:


* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

ps:
http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm

looks like good negotiating position.

thesaint

Immers7 wrote: »

Lets be honest, your landlord doesn't need to quote anything to increase your rent.

He does if the tenancy agreement says so.

HappyMJ

thesaint wrote: »

He does if the tenancy agreement says so.

During the fixed term...yes...not once the fixed term is over.

dannim12345

I had this happened (almost). They suggested a rent increase; I saw the contract stated it should be inline with the RPI so questioned it and the agency agreed to the lower amount aka as the RPI %. Obviously they could of said it £X, take it or leave. We're on a rolling contract.

thesaint

HappyMJ wrote: »

During the fixed term...yes...not once the fixed term is over.

Please check your facts.

jjlandlord

thesaint wrote: »

Please check your facts.

In a SPT the landlord is not constrained by any rent increase clause and can use s.13 in any case...