excessive rent increase

meme86

so my tenancy is coming up for renewal early next year, and the letting agents have come to me saying that the landlord wants me to sign for another 12months, which i am happy to do, but they want to increase the rent by 21%

To me that does seem to be a very excessive increase. Just wondering what everyone else's thoughts are?
Would a 10% increase still be a little steep?

Bluebell1000

As a landlord, we've not increased our tenants rent for the whole time they've been there (over 3 years now). Personally I'd rather have a really good tenant paying a little under current market value than risk them deciding to leave!

How would the rent compare to other places in your area before / after increase?

You don't have to sign a new contract if you move onto a rolling monthly arrangement, after your current contract expires...

Have they served notice for a rent increase, or is it just written on the new contract?

canaldumidi

You are under no obligation to sign a new contract. You can simply move to a periodic (rolling) tenancy under the same terms/same rent as before.

Of course, that give less security as the LL could serve a S21 Notice, and eventually evict you in 6 - 18 months time.

Or could serve a S13 Notice to increase the rent, which you could challenge at tribunal.

See

Post 4: 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?

Post 5: Rent increases: when & how can rent be increased?

The alternative is to negotiate a lower increase, perhaps supported by evidence of rents being advertised locally for similar properties.

elsien

Have you checked comparable rents in your area?

macman

LA's always encourage you to sign a new AST, as they get to bill the LL for a new TA. As advised above, you can just let it roll forward on a monthly basis, if you aren't seeking a new 12m minimum term.

meme86

i have lived here for 3 years now, and would prefer to stay, a lot easier than moving, and also knowing that i wont move next to the neighbours from hell

I have emailed the agents saying that i am happy to stay, just not at what they are asking. Could cope with a £50 increase, not over £120 like they're asking.
Just depends on whether they want stable and reliable tenants, or risk the place sitting empty for a while.
Some similar properties in the area are around what they are wanting to charge me, but those have being sitting empty for months.
Just the waiting game now to see how greedy they are

HampshireH

What does your tenancy agreement allow for in terms of a rent increase? Are they complying with that?

I'd agree 21% is excessive. I always think it's unfair when landlord play catch up on rent increases. If your landlord had increase it by 7% a year you probably wouldn't be as unhappy as it would be more manageable / planned

[Deleted User]

meme86 said:

i have lived here for 3 years now, and would prefer to stay, a lot easier than moving, and also knowing that i wont move next to the neighbours from hell

I have emailed the agents saying that i am happy to stay, just not at what they are asking. Could cope with a £50 increase, not over £120 like they're asking.
Just depends on whether they want stable and reliable tenants, or risk the place sitting empty for a while.
Some similar properties in the area are around what they are wanting to charge me, but those have being sitting empty for months.
Just the waiting game now to see how greedy they are

I'd have told them you can't take any increase. Inflation is high, taxes are going up. Even if you can afford £50 today, can you afford it tomorrow?

It's always worth saying no and then seeing what their attitude is.

badmemory

Has the landlord even agreed to this?

Leggitte

I've always thought that £25 increase, every other year is acceptable. In your case that would equate to an additional £50 as you did not have an increase after 2 years. To compensate for that £60 also looks acceptable. Anything higher seems high to me.

user1977

badmemory said:

Has the landlord even agreed to this?

Indeed, if you've got a tenant who's been there a few years and paid their rent reliably, would the landlord really want to threaten to kick them out in the hope of getting higher rent from an unknown quantity? I would just stick at the existing rent (as an initial response anyway). Hardly a money-saving approach to offer them more rent which they might not even be expecting!