Moving from fixed to periodic tenancy, do not agree with rent increase, how will it play out?

6am

The fixed tenancy will end at the start of October, landlord proposes a rent increase. Tenant does not agree and intends to stay on a periodic tenancy at the current rent. Tenant is going to buy a property in next 4 months and move out.

What happens if tenant stays on periodic tenancy and does not agree to a rent increase? I believe landlord will have to serve section 21 notice giving tenant 4 months to leave. Is my understanding correct?

Tenant intends to move in 4 months anyway and happy to pay current rent for 4 months. Will tenant be liable for the increased rent to which they did not agree? What impact will this disagreement have on the tenant's credit history?

Thank you

Slithery

Read...
Rent increases

anselld

After end Sept s21 notice reverts to 2 months unless the Gov makes another last minute extension.  However, you are not required to leave at the end of s21 notice; that is merely the possible start of proceedings which would take some significant further time.  You may be liable for the cost of proceedings however.
Alternatively the L may serve s13 notice of rent increase after the periodic starts though again this will have little impact given your hoped for timescales.
There is no impact on credit history.

canaldumidi

What does the tenancy agreement say, if anything, about rent increases? If it says rent to increase by X annually, then you've already agreed to that.

Otherwise, Periodic tenancyis at same rent as before. Landlord can then

* do nothing and accept the same rent

* serve S21 (2 months) and then go tocourt

* serve S13 to increase the rent

As per slithery's post above, read my stickie.

AdrianC

canaldumidi said:

Otherwise, Periodic tenancyis at same rent as before. Landlord can then

...
* serve S21 (2 months) and then go to court

Four still...

canaldumidi

AdrianC said:

canaldumidi said:

Otherwise, Periodic tenancyis at same rent as before. Landlord can then

...
* serve S21 (2 months) and then go to court

Four still...

fixed term ends "at the start of October"....

Slithery

canaldumidi said:

As per slithery's post above, read my stickie.

Hello  

diggingdude

Why not discuss with landlord, tell moving out in 4 months see of they will agree to same rent extension

saajan_12

6am said:

The fixed tenancy will end at the start of October, landlord proposes a rent increase. Tenant does not agree and intends to stay on a periodic tenancy at the current rent. Tenant is going to buy a property in next 4 months and move out.

What happens if tenant stays on periodic tenancy and does not agree to a rent increase? I believe landlord will have to serve section 21 notice giving tenant 4 months to leave. Is my understanding correct? - the current plan is for S21 notice period to revert to 2 months after 30Sep21. This doesn't mean the tenant has to leave immediately, they can stay until evicted by a court which will be well past the 4 months. However the LL's court costs can be passed on to the tenant, so if this is a cost saving measure then the tenant could be worse off. 

Tenant intends to move in 4 months anyway and happy to pay current rent for 4 months. Will tenant be liable for the increased rent to which they did not agree? - they will be liable for the rent in force, either by agreement or by tribunal. 
What impact will this disagreement have on the tenant's credit history? - none if they pay the rent in force (ie pay the increase if ratified by tribunal). If not, they may end up with a CCJ. 

Thank you

The LL has 2 options if the tenant refuses any increase
1. Section 13 notice to increase rent; this will give 1 month notice, after which tenant can agree, or refer to tribunal. The tribunal will then decide what is fair, and their decision is the final rent - which the tenant must pay or be sued. 

2. Section 21 notice to seek possession; this will give 2 months notice (if served Oct, based on current gvt guidance) that the LL intends to go to court. Crucially,
- the tenant doesn't have to leave after 2 months, and can continue on the old rent well after the 4 months.
- However the LL can claim their court costs from the tenant, which could start to incur in 2 months. 
- Tenant still has to serve their own notice unless they wait for court order, so may have an overlap and 
If the overall aim is to save a bit of money, this may end up more expensive. 

So for the sake of 4 months of higher rent, it might be more cost effective to work with the LL - eg "I'll pay the higher rent in exchange for less notice or agreeing a mutually convenient early termination date"