AST renewal with clause for rent increase

mpaterson18

Hi, we've been in our rented property for 8 years and are in the midst of renewing our AST for a further period of 3 years. Landlord has agreed with a smallish rent increase. We've previously had a three year contract on a fixed rent so we were expecting a rent increase. We were just about to sign the contract when we noticed a clause that allows the landlord to increase the rent every 12 months for between 3% and 8%. At no point did the agency point this out, we thought we had negotiated another 3-year fixed rent contract. When flagging this up to tenancy agent they said they are now putting this in all contracts as standard. The break clause is at 18 months so in theory we could be tied into contract for 6 months at an increased rent of 8% before we could leave. Is there anything we can do about this? Are they allowed to do this? 3-8% in actual monetary terms is quite a difference. Plus if it is every 12 months we could face another rent increase at 24 months. Any suggestions gratefully received!

chunkytfg

Ask them to remove it?

cherryblossomzel

I don't know if it's standard, but it was certainly in my AST, although in my case it said that they could increase by 5%, no range. They try to increase it by 5% every year and I fight back every year so it's increased only by something closer to inflation. No guarantee that they'll agree to that though, and if they refuse I'd either have to pay up or move.


The clause also protects you: presumably it means they also can't suddenly throw a 20% increase your way.