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Landlord/agents trying to push me onto a fixed term tenancy along with rent increase and £150 admin

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cashmonger
cashmonger Posts: 411 Forumite
edited 16 April 2019 at 7:31AM in House buying, renting & selling
I have been in my property renting nearly 2 years now. Rent began at £475 on a new build property. The original fixed term was for 6 months and it specifically states in the terms that you have the option of a statutory periodic contract once the current one runs out.

Before the 6 months finished the flat had been sold to a private owner and so too the letting agents were passed over to another company. The agents allow web login and it allows me to look at our agreements and information online. When things were passed over I notice they had extended the fixed term for another 6 months (unbeknownst to me at the time but it was on the dashboard when logging in). That wasn't a problem at the time since they didn't ask for any charges from me and I was happy living here then.

That was around 9 months ago and I have been on an SPT since then and it also says it on my dashboard when I login that my tenancy is periodic.

I got an email the other day saying 'my tenancy is due to expire' and they want me to renew with a fixed term.

Here is my response:
As it shows in my dashboard the fixed term was 29th May 2017 - 28th May 2018 so once that ended I have through default been on a Statutory Periodic Tenancy (SPT) since 28 May 2018. I am happy living here and with being on an SPT and would like to continue with no changes as long as that is ok with the landlord so this should require no additional admin work as I have been on the same periodic tenancy since May 2018 and would like to continue as I have been since then provided the landlord is happy with this.
But now they are responding saying the landlord wants a price increase of £20 per month; ok that is understandable but they also want to put me on a fixed term now and of course the agents take their £150 for the gruelling work of writing up a new contract.

Here is their 2 responses:
Thank you for your response.

We are pleased to hear that you wish to remain at the property.

Your landlord requires a fixed term tenancy, not a statutory periodic tenancy. Therefore, we will be going ahead with the renewal.

There will however, be an email to follow shortly regarding the next steps and the rental increase.

Thank you.
Good Afternoon

Thank you for confirming that you are happy in the above property.

After reviewing similar rented properties within the area, we have found that properties are achieving a rental figure in the range of £500-520.

We are pleased to be able to propose a renewal for a period of 12 months with a rental increase of £20 meaning your new monthly rent will be £495.

Once we have your confirmation and agreement we will then process the renewal which is completed electronically.

Please note that the cost for a renewal is £150 which is requested online.

Please make sure you provide a colour copy of both pages of your passport along with a utility bill from within the last 3 months.

Please can you respond to this email confirming you agree with the above.

We look forward to hearing your response.
(bold in original)

I know the ban on admin charges are coming in in less than two months right? so is there a way to avoid that fee? Also I don't want to be on a fixed term contract but is that mandatory when the rent increases?

I like the flexibility of not being tied to a contract and indeed I had been thinking of moving but within the next month will make things all the more immediate if I have to do that. I wasn't decided but I was testing the waters at other places but now this will make everything rushed.

I was thinking I could take my time since I was on a rolling contract, having to give only a month's notice, but now it will make things urgent if I am forced into a fixed term contract for the price hike.

So what are my options? I don't really want to be tied to another 6 months (I see they are asking for 12 months!) here because I wasn't happy where I am living already and had been going on day-trips elsewhere with a mind to see where I fancy but now everything is going to be rushed if indeed I would be forced into a contract or to leave at the end of may.
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Comments

  • csgohan4
    csgohan4 Posts: 10,597 Forumite
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    Guide by G_M says it all really


    https://forums.moneysavingexpert.com/showpost.php?p=67759913&postcount=4




    Just ignore them and continue on SPT. If they give you a section 21, it can still take many months to evict you
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • da_rule
    da_rule Posts: 3,618 Forumite
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    You have a few options:
    1) Don’t reply and hope they give up and don’t commence possession proceedings.
    2) Agree and pay the fees.
    3) Don’t reply until 1st June (and hope they don’t commence possession proceedings) then agree and they won’t be able to charge the fees. However, they can still charge the fee to the landlord who may then put the rent up to cover this.
  • cashmonger
    cashmonger Posts: 411 Forumite
    edited 16 April 2019 at 8:11AM
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    So to my other question, is a fixed term/new tenancy agreement mandatory when they increase the rent?

    Ideally I would like the flexibility of the option to stay (even at the rent increase) while still having being on an SPT, since my mind was not made up about moving yet whether it is right or not and I will feel rushed to move by end of may.

    At the same time the last move I made was because the landlord put a fire under my a s s of £200 rent increase or leave so it can be a motivator for change you otherwise wouldn't have made.

    I think I do want to move but the question is whether it will be a hurried one or a more casual one.

    I'll re-read the above link now didn't look at it since last time I was looking at the market.
  • dimbo61
    dimbo61 Posts: 13,720 Forumite
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    What is the point of the landlord putting up the rent by £20 a month !
    After living in the property for 2 years he/she wants to up the rent by 4%
    and maybe lose a good tenant and have a void period of 1/2 months which will cost them over £1,000+ with letting agents fees on top.
    Do a bit of research yourself as the the letting agents seem to have done !
    How many empty properties are on the rental market in your area like your home ?
    How much are the local letting agents asking ! ( Use Rightmove )
    This is a case of the letting agents getting greedy.
    If you see a couple of nice properties near you that are the same rent send the details to the letting agents.
    Ask them for the Landlords name and contact details and which redress scheme they belong too.
  • stator
    stator Posts: 7,441 Forumite
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    No, a new tenancy is not mandatory when they increase the rent


    Just ignore them.


    If you receive official notice of a rent increase, pay it.
    Changing the world, one sarcastic comment at a time.
  • KK14
    KK14 Posts: 32 Forumite
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    It seems like letting agents are trying it on. This is what mine tried to do. My 12 month fixed term ends in April this year & they wanted me to sign up to another 12 months. They started on me about this in January this year!!
    I asked them what the rush was & that I wanted to go onto a rolling contract & avoid paying the 12 month fee.
    I didn’t want to go into a fixed contract period as despite being happy living here, my mum was at late stage dementia & sadly went into hospital & didn’t make it out again, a few weeks ago. I’m now nearly at the point of selling her bungalow & will be able to buy a house.
    Don’t let them bully you!
  • wesleyad
    wesleyad Posts: 754 Forumite
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    In this situation you have to try to get hold of the LL. The agent stating the LL needs a fixed term is very very likely to be complete !!!!!!!! (there are some odd times when this does happen, but its rare).

    More likely is they are charging you both, and haven't informed LL you want a SPT or they have advised the LL that its "the law" to have a fixed term.

    A quick text or call to the LL, to say "Hi I'm happy to stay, I'm even OK with rent increase, but want a SPT to avoid fees which are soon being made illegal. If you want to evict then fair enough" I dont have any stats to back this up, but you're probably looking at 99%+ of LLs saying carry on.
  • G_M
    G_M Posts: 51,977 Forumite
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    Read:


    * 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?
  • SpiderLegs
    SpiderLegs Posts: 1,914 Forumite
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    My guess is that the landlord neither knows nor cares that you are on an SPT. Sounds very much like the agent has gone through all their tenants who are on periodic and are having one last push to cream as many fees as possible before June.

    Personally I would not even bother replying.
  • daphnemoon
    daphnemoon Posts: 79 Forumite
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    edited 16 April 2019 at 5:16PM
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    We're in the same situation!!

    It's so difficult to find out the specific information, especially with the fear that paying the increase in rent will form a new agreement and tie you in.

    I am led to believe though that just paying the new amount will not tie you into a new contract and you can wait until the LA provides you with a formal ‘Landlord’s notice proposing a new rent’ form.

    The best, and clearest advice regarding our situation I have come across (after hours of searching!) is this link -

    https://www.gov.uk/private-renting/rent-increases

    I think this will be happening a lot in the next few weeks as the new laws commence in June. At least there's people on here that understand the worry of the situation and genuinly try to help us all though!!

    All the best with it.
    I wish I knew more than I do!! :)
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