Rejecting a rental increase?

wksd

anselld said:

Does it look like this ? ...
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/471846/Form_4_-_Eng.docx
... if not, it isn't a valid s13.

not even close!

Crashy_Time

wksd said:

Hi, posting on behalf of my brother.

He currently privately rents, he has just received a letter saying that his rent will increase from £630 to £700. He simply cannot afford this. I don't know if this is a section 13 notice as it does not say. The letter was sent end of November for rental increase to take place from end of January. It says that he has two options, to accept or reject. On the rejection it states 'I do not agree to the new monthly rent of £700 and I will not continue my month to month tenancy and will vacate by 22 January 2021 according to the terms of the original rental agreement'.
Brother has not currently got the original agreement, but I assume from the way this is worded that it is a rolling month to month contract.

I am aware he can write to the landlord, explain his situation and then see if he rejects or accepts. But my brother doesn't want to increase by such a significant amount, especially considering his affordability, because no maintenance has been carried out.

So what are his options? And if he were to reject but refuse to move out, so a section 21 would have to be issued (is that correct?) can he be forced to move out in COVID?

Thanks

He needs to start putting a cash cushion together and looking for a cheaper rent, this would be the best time in a long time to find a cheaper rent I would think? 

Robbo66

That sounds like it could be a contractual agreement so by signing it the rent increase was pre agreed, he needs to contact the landlord and have a discussion over the rent and hopefully there is a point that they can meet at.

wksd

Robbo66 said:

That sounds like it could be a contractual agreement so by signing it the rent increase was pre agreed, he needs to contact the landlord and have a discussion over the rent and hopefully there is a point that they can meet at.

the rent increase is still above the upper ceiling? (7.5% maximum but this is 11.11% increase)
Also it wasn't a legitimate section 13 notice we've discovered, so now what.

He can under no circumstances afford it (disabled in the middle of a pandemic). He always pays his rent on time, no arrears and never has. So if he went down the refusal route, my assumption is that he would be served a section 21. Does anyone know the current rules and timeline for this?

theoretica

Is this the only rent increase since 2017?  The 7.5% hasn't been used up already?

greatcrested

wksd said:

greatcrested said:

To clarify the posts above

* referral to the tribunal only applies if a valid S13 was used. We don't know hence my earlier questions

* if it was not a S13, the rent increase may still be valid and enforceable if it was contractually agreed at the start of the tenancy. We don't know hence my earlier questions.

How can you tell it's a legitimate section 13 notice? Nothing says 'section 13' the letter goes:

See the link to a Section 13 Notice in my first post!

I have the tenancy agreement, from 22 May 2017. The original tenancy is said to be 12 months, I don't think my brother signed anything after this  you need to be sure! so it is probably now a rolling contract? probably - yes. The contract states 'in the event at the end of the stated term the tenancy is extended for a further period, the landlord will be at liberty to consider an increase in rent to reflect a fare (sic) amount of increases in the cost of all the services he is providing and the general inflationary increases. However, there will be an upper ceiling of 7.5%'
Meaningless. if a 'further period' is agreed it can be at any rent the two parties agree. The 'ceiling' can be ignored if both parties wish.
The tenancy also states that 'with the agreement of both the tenant and the landlord the tenancy may be brought to an end at any time, by one month's notice' and it also states that it becomes a rolling contract.

So it is a contractual periodic tenancy. As the link I gave you earlier explains, if the contract is silent with regards to rent increases, then a S13 is required (as just explained, the clause you quote is irrelevant as that applies to a subsequent fixed term and is anyway irrelevant to a new fixed term).

Are you 100% sure there is no other mention of rent icreases in the tenancy agreement?

So, assuming a S13 is required, and as this is just a letter, not a S13, it can be ignored.

But if he starts to pay the new rent, he'll be legally deemed to have accepted it.

And of course, if he simply continues to pay the old rent, the LL may then take further action eg issue a S21 Notice, or a S13.

wksd

theoretica said:

Is this the only rent increase since 2017?  The 7.5% hasn't been used up already?

Yes, he went onto a rolling contract (or so it appears) and this is the first time. His current rent is in line with market rent when I look it up. (£700 is probably the upper for the area) it is a 1 bed flat, there's a lot cheaper in the area to be honest.

The landlord has provided him with no number or address / contact details. Apparently he just comes by sometimes (and picks up post)

wksd

Just to add, current listings on Rightmove show the identical style flat on his same road for £525 (much nicer condition)

anselld

wksd said:

Just to add, current listings on Rightmove show the identical style flat on his same road for £525 (much nicer condition)

Why doesn't he move then?

wksd

greatcrested said:

wksd said:

greatcrested said:

To clarify the posts above

* referral to the tribunal only applies if a valid S13 was used. We don't know hence my earlier questions

* if it was not a S13, the rent increase may still be valid and enforceable if it was contractually agreed at the start of the tenancy. We don't know hence my earlier questions.

How can you tell it's a legitimate section 13 notice? Nothing says 'section 13' the letter goes:

See the link to a Section 13 Notice in my first post!

I have the tenancy agreement, from 22 May 2017. The original tenancy is said to be 12 months, I don't think my brother signed anything after this  you need to be sure! so it is probably now a rolling contract? probably - yes. The contract states 'in the event at the end of the stated term the tenancy is extended for a further period, the landlord will be at liberty to consider an increase in rent to reflect a fare (sic) amount of increases in the cost of all the services he is providing and the general inflationary increases. However, there will be an upper ceiling of 7.5%'
Meaningless. if a 'further period' is agreed it can be at any rent the two paries agree. The 'ceiling' can be ignored if both parties wish.
The tenancy also states that 'with the agreement of both the tenant and the landlord the tenancy may be brought to an end at any time, by one month's notice' and it also states that it becomes a rolling contract.

So it is a contractual periodic tenancy. As the link I gave you earlier explains, if the contract is silent with regards to rent increases, then a S13 is required (as just explained, the clause you quote is irrelevant as that applies to a subsequent fixed term and is anyway irrelevant to a new fixed term).

Are you 100% sure there is no other mention of rent icreases in the tenancy agreement?

So, assuming a S13 is required, and as this is just a letter, not a S13, it can be ignored.

But if he starts to pay the new rent, he'll be legally deemed to have accepted it.

And of course, if he simply continues to pay the old rent, the LL may then take further action eg issue a S21 Notice, or a S13.

Thanks, I did respond regarding S13, definitely not what he was issued. 

Yes I am sure no other mention of rental increase is within, most is about how he needs to use placemats and clean the bath