Am I Paying Too Much Rent?

dazzawm

Is there some sort of law or committee that can decide what is a fair rent? My landlord has been told by his estate agent that he has been advised to increase the rent by £20 per month. How do I know this is fair and that they are not taking advantage. Is there some sort of 'body' that can tell me if what they are asking is fair?

I know you have to take into consideration the area you are in, the quality of the flat etc. but I think I am paying too much.

I have also replied to the estate agent (as the lease is up for renewal) asking that the landlord consider redecorating at some point if I agree to another 2 year contract. Does this seem like I am blackmailing him? Or considering how much rent I would have paid after the third year (£28000) this is a fair ask?

Thanks.

Doozergirl

No, there isn't. The market sets the rent. If there is better elsewhere for a better price then those are the properties that will rent first. That's the only thing that sets pricing. Have a look at what is available.

If you are talking directly to the landlord then tell him that you are thinking of moving as a result of the proposed increase. The cost of re-letting the property would take a lot of £20s to cover.

It suits Letting Agents to turn properties over as they make more money from both landlord and new tenants.

Smodlet

There is a way to get a rent-controlled apartment... move to the US, where they call flats apartments and have laws about rent that actually take into account tenants' rights. Sorry, nothing like that here, though the gods know we need it.

AnotherJoe

Yes, the "law" is called supply and demand.

If you think it's too expensive you can verify that by finding cheaper flats, so just move to one of those. Or as suggested, tell the landlord you are considering moving but only do that if you know cheaper or better are readily available, its also possible that the landlord had thought about increasing your rent by a higher amount but decided to lessen it as you've been a good long term tenant. No way for anyone here to know.

Some months back someone here moaned about their "rip off high rent landlord" but then later admitted that if they lived elsewhere rents would be higher !

anselld

dazzawm wrote: »

Is there some sort of law or committee that can decide what is a fair rent? My landlord has been told by his estate agent that he has been advised to increase the rent by £20 per month. How do I know this is fair and that they are not taking advantage. Is there some sort of 'body' that can tell me if what they are asking is fair?

I know you have to take into consideration the area you are in, the quality of the flat etc. but I think I am paying too much.

I have also replied to the estate agent (as the lease is up for renewal) asking that the landlord consider redecorating at some point if I agree to another 2 year contract. Does this seem like I am blackmailing him? Or considering how much rent I would have paid after the third year (£28000) this is a fair ask?

Thanks.

You do not need to accept a rent increase or sign a renewal. You can allow the tenancy to continue into a Statutory Periodic Tenancy.

After that the rent increase woul need to be notified by s13 notice which you are entitled to appeal at the First Tier Tribunal.

However, the L could also decide to evict you using s21, so if you want the security of another 2 year fixed term then you need to negotiate terms which are acceptable to both you and the Landlord.

theartfullodger

Is there some sort of law or committee that can decide what is a fair rent?

Yeah, no worries, government process exists.

You are perfectly entitled to appeal to the Rent Assessment Committee about either the current rent or indeed any proposed rent increase, and they will decide what is "fair market" rent.
http://england.shelter.org.uk/get_advice/tribunals/rent_asssessment_committeees

Assured shorthold tenants

You can ask a first-tier tribunal to decide disputes about rent increases and excessive rents if you are an assured shorthold tenant.

http://www.legislation.gov.uk/ukpga/1988/50/section/13

However if you do it is likely landlord will evict you using s21 for which he needs no reason at all.

Sorry, life ain;t "fair".

Pixie5740

What does your tenancy agreement say about rent increases?

You might find G_M's guide to Rent Increases useful as it more or less backs up what anselld and Artful are saying.

The amount of rent you've paid for 3 years is irrelevant. You paid rent and received a roof over your head. Also, if your rent is over £750 a month then a £20 rent increase isn't very much at all especially if it's your first increase in 3 years.
If you would like your landlord to redecorate on the basis of you signing a new make sure you get the agreement to decorate in WRITING.

theartfullodger

NB The key section of Housing Act 1988 about getting rents reduced is s22...
http://www.legislation.gov.uk/ukpga/1988/50/section/22

22 Reference of excessive rents to rent assessment committee.

(1)Subject to section 23 and subsection (2) below, the tenant under an assured shorthold tenancy may make an application in the prescribed form to a rent assessment committee for a determination of the rent which, in the committee’s opinion, the landlord might reasonably be expected to obtain under the assured shorthold tenancy.

AdrianC

£28k/36mo = roughly £780/mo.
£20 increase = 2.5%
Inflation between August 2013 and today = 4.1%

Tyler119

Agree, as normal, with PIxie. Why do some tenants think that because they have paid rent, that they can have an entitlement attitude. The LL likely has a mortgage to pay, income tax etc. It is like saying, oh I've been paying my mortgage amount to the bank for 5 years, I've gone into my overdraft , I should not have to pay the interest accrued as a result of me paying 45k to in mortgage payments....

A twenty pound monthly increase is fairly small and the first in three years is reasonable.

Quick tip...don't like it, move property. I would first work out your moving costs, letting agency fees etc for the new property and see financially if you are going to be better off and weigh up the issues of actually moving.

AdrianC

Tyler119 wrote: »

Agree, as normal, with PIxie. Why do some tenants think that because they have paid rent, that they can have an entitlement attitude. The LL likely has a mortgage to pay, income tax etc. It is like saying, oh I've been paying my mortgage amount to the bank for 5 years, I've gone into my overdraft , I should not have to pay the interest accrued as a result of me paying 45k to in mortgage payments....

Even that isn't really relevant.

A tenant is paying for the provision of a property in which they can live for a certain amount of time. It's that simple.