New tenancy agreement post fee ban

Toozie

My housing agency has proposed a few amendments to our tenancy agreement in light of the fee ban, two of which I'm not happy about...

9.2 Rent Review
9.2.1 It is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%.

9.8 Interruptions to the Tenancy
9.8.3 If at any time throughout the term of the tenancy a change of person or persons should occur an administration charge will be levied of £50.00 including Value Added Tax or any reasonable costs incurred if these are higher than £50.00 including Value added Tax.
9.8.5 If at any time there is a variation of contract there will be a £50.00 including Value Added Tax charge associated with the preparation and execution of new legal documentation.

The rent review clause is basically saying that the rent will go up every year under all circumstances. Obviously we are not happy with this, is the best option persuading the landlady to go private?

Also, is the interruptions clause allowed? Are we not basically agreeing to fees due to a change of tenancy if we sign this new agreement?

Thanks

kinger101

If you have an existing tenancy agreement, do nothing. Then let it go to a contractual or statutory periodic tenancy once this lapses.

I wouldn't bother the landlord yet. Just stonewall the agency for now.

cooltt

Toozie wrote: »

My housing agency has proposed a few amendments to our tenancy agreement in light of the fee ban, two of which I'm not happy about...

9.2 Rent Review
9.2.1 It is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%.

9.8 Interruptions to the Tenancy
9.8.3 If at any time throughout the term of the tenancy a change of person or persons should occur an administration charge will be levied of £50.00 including Value Added Tax or any reasonable costs incurred if these are higher than £50.00 including Value added Tax.
9.8.5 If at any time there is a variation of contract there will be a £50.00 including Value Added Tax charge associated with the preparation and execution of new legal documentation.

The rent review clause is basically saying that the rent will go up every year under all circumstances. Obviously we are not happy with this, is the best option persuading the landlady to go private?

Also, is the interruptions clause allowed? Are we not basically agreeing to fees due to a change of tenancy if we sign this new agreement?

Thanks

No fees mean no fees but you can't expect lettings agents to comply with the law in the spirit of it's intention. Expect to see these attempts to circumvent the new legislation tested in court at some point soon and after that (fingers crossed) many will go under.

As for your situation the only reason they've sent you these proposals is because they HAVE too. You have an existing contract and they want to make changes which requires both parties to agree.
My response.......thanks but no thanks.

Every time i see a letting agent go under from now on I'll crack open another beer.

G_M

Toozie wrote: »

My housing agency has proposed a few amendments to our tenancy agreement in light of the fee ban, two of which I'm not happy about...

9.2 Rent Review
9.2.1 It is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%.
Nothing to do with the Tenant Fees act. It is relatively common for tenancy agreements to have a clause relating to rent increases. At least this is transparant.


Up to you whether to
* agree
* negotiate the increase (eg the minimum)
* go periodic and ignore the new contract


9.8 Interruptions to the Tenancy
9.8.3 If at any time throughout the term of the tenancy a change of person or persons should occur an administration charge will be levied of £50.00 including Value Added Tax or any reasonable costs incurred if these are higher than £50.00 including Value added Tax.
Well any chang of person would in any case be subject to the agreement of the LL/agent. Prior to the Act thy could have chrged you whatever they liked.Now the fee is limited to £50.

9.8.5 If at any time there is a variation of contract there will be a £50.00 including Value Added Tax charge associated with the preparation and execution of new legal documentation.

As above

I don't se a problem with the clauses.


whether you want a new fixed term,or prefer to go periodic, is a different issue.


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?

BurnCK

cooltt wrote: »

No fees mean no fees but you can't expect lettings agents to comply with the law in the spirit of it's intention. Expect to see these attempts to circumvent the new legislation tested in court at some point soon and after that (fingers crossed) many will go under.

Actually, I think these fees are legal. This is what is stated on .gov website:

• capping the amount that can be charged for a change to a tenancy at £50 unless the landlord can demonstrate that greater costs were incurred

So asking for a change to a tenancy can incur a charge to a maximum of £50. Obviously the agents are now just going to charge the maximum £50 they can considering they've lost their main cash cow.