Rent Increase During The Coronavirus Pandemic

W33D4VE

We have heard that banks are to provide a 3 month mortgage break, and that Landlords are nor allowed to commence any legal action against tenants for 3 months because of the financial uncertainty at the moment. Is there anything to stop Landlords increasing rent during this period? I received an email today, advising of a 7% increase, at a time when the cost of borrowing has fallen. I appreciate that the rent may possibly be the Landlords income.
Anybody ???

AdrianC

I presume your tenancy allows a 7% increase... That'd be unusual - normally, they'd be inflation-linked.

If it's a case of "Please sign this new tenancy, with a 7% increase", then remember you don't have to.

steampowered

What does your tenancy agreement say about changes in rent?

The reality is that the landlord will have a lot of difficulty finding replacement tenants right now, so you can leverage that.

W33D4VE

Thanks both for the advice. I have yet to check my agreement. I am still a bit shell-shocked. I fairness there has not been an increase in my rent since i moved in (December 2015), so it was inevitable at some point. I just did not expect it during this crisis.
I honestly think that they could find a new tenant by Monday. They are snapped up quickly 

greatcrested

Do you have a fixed term tenancy? Is it ending? If offered a new fixed term the LL can propose whatever rent he wishes. You can agree or decline.

Do you have a periodic tenancy? Does the original contract say aything about rent increases? If yes, what? If no, has he sent you a S13 Notice?

The recent new government rules do not include any changes to rent.

AdrianC

W33D4VE said:

Thanks both for the advice. I have yet to check my agreement. I am still a bit shell-shocked. I fairness there has not been an increase in my rent since i moved in (December 2015)

Ah...!

So if it's an inflationary increase, then CPIH for Dec 2015 = 100.4, Feb 2020 = 108.6.

7% is slightly under the total inflation for the period... I'd lay odds that the tenancy will allow inflationary increases, including deferring them.

[Deleted User]

Point out that you have paid your rent reliably and that you do not feel able to agree to an increase in the current climate. LL will either accept this or try again. 

anselld

W33D4VE said:

We have heard that banks are to provide a 3 month mortgage break, 

Its not a break, its a delay.   It still has to be repaid .. with interest.

Comms69

anselld said:

W33D4VE said:

We have heard that banks are to provide a 3 month mortgage break, 

Its not a break, its a delay.   It still has to be repaid .. with interest.

True, but at the same time a mortgage is generally a longer term commitment than a AST. A mortgage holiday at this time is going to help people massively. Even if in the longer term they pay a bit more

W33D4VE

Good morning all,
Thank you again for your feedback and insight.
I have reveiwed the tenancy agreement. There is not a clause that relates to any increase in rent. The agreement was for an initial 6 months term, which after that period would become a monthly rolling contract. As previously mentioned, I now lived happily in the property for almost four and a half years. I can afford the increase, and i do not begrudge the LL in doing so, as he may be struggling at this time. 
To answer one of the questions above: No I have not received and S13 Notice.
As i said, the increase is not really the issue. My query was to ask if anybody was aware of any recent guideline put forward due to the coronavirus that prevents LL's raising rents during this period

Thanks again

AdrianC

W33D4VE said:

My query was to ask if anybody was aware of any recent guideline put forward due to the coronavirus that prevents LL's raising rents during this period

There isn't any.

The only thing that's changed is that possession hearings have been suspended.