Early Rent Increase, is this possible?

chineplate

[FONT=&quot]Hi, I need a bit of advice on how to deal with my landlords proposed rent increase. I am on a Assured Shorthold Tenancy with an initial fixed period of 6 months. At the 3 month point of my fixed period the landlord has proposed, on a form 4 of section 13(2) of the 1988 housing act, an increase to my rent of about 5% at the next payment point which will be 4 months into contract. I'm pretty sure that he can't initiate this so early in the contract and must wait for the fixed period to end; is my thinking correct on this. A further detail in my tenancy contract states that the rent will be increased by 6% on the anniversary of the contract start date, I accepted this and so was a little surprised to get the rent request at the 3 month point. [/FONT]
[FONT=&quot]So, my question is: Can a landlord make further rent increase requests outside of that detailed in the tenancy contract. Thanks for your opinions.[/FONT]

glasgowdan

Rather cheeky, and I've no idea if he legally can or not sorry. But I would just continue to pay the regular amount for the 6 months and expect to pay 6% more after that.

theartfullodger

S13 is not valid until 1 year after start of fixed term or during fixed term - see
https://england.shelter.org.uk/__data/assets/pdf_file/0004/386455/Factsheet-Rent_increases-assured_shorthold_tenants_May_2016.pdf

You can either ignore the notice & have a row later, give notice of a rent decrease or gently point out the legalities. Either way he's going to be unhappy.

There is nothing to stop both parties agreeing to a rent increase (or decrease!) at any time - but only with the agreement of both parties.

pmlindyloo

theartfullodger wrote: »

S13 is not valid until 1 year after start of fixed term or during fixed term - see
https://england.shelter.org.uk/__data/assets/pdf_file/0004/386455/Factsheet-Rent_increases-assured_shorthold_tenants_May_2016.pdf

You can either ignore the notice & have a row later, give notice of a rent decrease or gently point out the legalities. Either way he's going to be unhappy.

There is nothing to stop both parties agreeing to a rent increase (or decrease!) at any time - but only with the agreement of both parties.

I believe the S13 is valid after the initial fixed term - in this case 6 months, not a year.

https://www.tenancyagreementservice.co.uk/rent-increases

HappyMJ

chineplate wrote: »

[FONT=&quot]Hi, I need a bit of advice on how to deal with my landlords proposed rent increase. I am on a Assured Shorthold Tenancy with an initial fixed period of 6 months. At the 3 month point of my fixed period the landlord has proposed, on a form 4 of section 13(2) of the 1988 housing act, an increase to my rent of about 5% at the next payment point which will be 4 months into contract. I'm pretty sure that he can't initiate this so early in the contract and must wait for the fixed period to end; is my thinking correct on this. A further detail in my tenancy contract states that the rent will be increased by 6% on the anniversary of the contract start date, I accepted this and so was a little surprised to get the rent request at the 3 month point. [/FONT]
[FONT=&quot]So, my question is: Can a landlord make further rent increase requests outside of that detailed in the tenancy contract. Thanks for your opinions.[/FONT]

You could say no...that might lead to a section 21 notice requiring possession at the end of the 6 months.

I would never have signed a tenancy agreement stating the rent was to increase by 6% every year. That's quite a high increase when market rates for rental properties are actually falling due to the higher number of rental properties coming on to the market. There were a higher number of BTL purchases made recently due to the increase in SDLT. The sudden oversupply has depressed asking rents.

LittleMax

I would write back explaining that you have budgeted for the rent increase as detailed in your contract and cannot afford to pay an increase so soon. Politely request that you continue with the original agreement.

G_M

Dear Mr Landlord,

Thank you for your letter of /xx/xx/16 and the enclosed S13 Notice.

As you will be aware, our contract states that the rent may be increased by 6% on the anniversary of the tenancy start date (clause X of the tenancy agreement), which will be on yy/yy/17.

Consequently I assume there has been a misunderstanding regarding the rent due.

Yours sincerely,

chineplate



see also

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

But note you may be served a S21 Notice which can take effect once your 6 month term ends.

Out of interest (and assuming your tenancy started after 1 Oct 2015), were you provided with:

* government leaflet "how to rent"
* EPC
* Gas Safety Certificate (if there's gas)
* smoke detectors on each floor
* CO alarm if there's solid fuel heating.

These are all now compulsory, and without them any S21 Notice would be invalid.

chineplate

Thanks to all for your opinions and guidance. After reading the detail on the linked web sites am I right in thinking that a s13 notice can only be issued 12 months after a previous one.

HappyMJ

chineplate wrote: »

Thanks to all for your opinions and guidance. After reading the detail on the linked web sites am I right in thinking that a s13 notice can only be issued 12 months after a previous one.

That would be right but there's nothing stopping the LL asking for more rent earlier and your refusal to pay can lead to a Section 21 notice so they can let the property to someone who is willing to pay the higher rent.

The majority of LL's and LA's just try and agree a rent increase with the tenant without using Section 13 and if you refuse to agree to pay more they'll just go for possession instead. Until they get possession you are only liable to pay the original rent and not the new proposed rent.

thesaint

chineplate wrote: »

Thanks to all for your opinions and guidance. After reading the detail on the linked web sites am I right in thinking that a s13 notice can only be issued 12 months after a previous one.

Have you had one previously?

HappyMJ wrote: »

The majority of LL's and LA's just try and agree a rent increase with the tenant without using Section 13 and if you refuse to agree to pay more they'll just go for possession instead. Until they get possession you are only liable to pay the original rent and not the new proposed rent.

To clarify this is ONLY if a valid Sec 13 hasn't been issued.

G_M

thesaint wrote: »

To clarify this is ONLY if a valid Sec 13 hasn't been issued.

To clarify further, the S13 you have received is not valid on at least 2 counts:

[FONT=Arial, serif]This notice should be used when proposing a new rent under an [/FONT][FONT=Arial, serif]assured periodic tenancy (including an assured shorthold periodic tenancy) of premises situated in England[/FONT][FONT=Arial, serif]. .......[/FONT]

[FONT=Arial, serif]Do not use this notice if the tenancy agreement contains a term allowing rent increases, or there is some other basis such as a separate agreement with the tenant for raising the rent. Any provision you rely on needs to be binding on the tenant. Legal advice should be sought if there is any doubt on this score.[/FONT]

Section 13 Notice