Section 13 Rent Increase

Robbo66

Durban said:

Robbo66 said:

Durban said:

canaldumidi said:

Robbo66 said:

Durban said:

T

Also , can the Section 13 be served within the fixed period but only to take place after the fixed period ie served 29th May so rent increase to be paid from the 29th June which will be the first day of the periodic tenancy or can it only be served AFTER the fixed tenancy has ended? 

yes it can providing the rent increase takes effect after the

• tenancy has become statutory periodic, and

• 'minimum period' following service of the notice has expired

It is quite unusual for a Section 13 to be used for contractual periodic tenancies. You say that your family member has to give a contractual 1 months notice, if contractual then Section 13 is not required only for Statutory periodic.

Does her fixed term become statutory periodic of contractual?

Are you sure Robb66? I do not think a change can be made/proposed to a tenancy, in this case a CPT (possibly a SPT?) before it exists. For example a tenant cannot serve notice to end a periodic tenancy before that tenancy has started (ie during the fixed term). So similarly I believe the LL cannot serve a S13 during the fixed term.

Happy to be corrected if there is precedent or other evidence.

OP seems pretty sure it's a CPT:

I have advised them not to be pressured and let it go periodic and when it’s time to move out in October, give them the one months contractual notice that they need to give.

but I agree this may be in doubt.

OP - what is the exact wording in the contract?

I also agree that in most cases a CPT would make allowance for rent increases, but where it does not, a S13 can be used. OP said

I am a landlord myself and have read through the tenancy agreement and the only way the rent can be increased is with a section 13 notice after the fixed period at the end of June or with their agreement. 

So I assume either the contract is silent (hence OP says: "the only way the rent can be increased is with a section 13 notice"), or the contract makes specific reference to a S13 Notice.

OP - which is it?

Thank you 

" For a term of 12 months commencing on 29/06/2021 and then the tenancy continues as a monthly contractual periodic until ended following either party giving Notice. Please see the below termination clause as it contains important information about what you must do to end the tenancy. The term is to include any periodic continuation of the tenancy beyond the fixed term"

This Agreement creates a single tenancy that starts with a fixed term and then becomes monthly periodic. This would normally guarantee both parties rights and obligations for the fixed term and a minimum of one monthly period. The following two clauses allow either party to terminate the agreement earlier than that date, but not before the end of the initial fixed term: T1: The Landlord may bring the tenancy to an end at, or any time after, the expiry of the fixed term by giving to the Tenant at least two months’ written notice stating that the Landlord requires possession of the Property. A notice under section 21 of the Housing Act 1988 will suffice to implement this sub-clause. Such a notice can be served at the earliest at the commencement of month 5 on the first ever agreed tenancy or at any time during the tenancy on any subsequently agreed renewals. T2: The Tenant may bring the tenancy to an end at, or any time after, but not before, the expiry of the fixed term by giving the Landlord at least one month’s written notice stating that the Tenant wishes to vacate the Property. A letter will suffice to implement this sub-clause. While the tenancy is periodic the one month’s written notice must expire the day before a Rent Due date *

"  RENT: £**** per month subject to any increase in the rent which the Landlord may hereafter be entitled pursuant to Section 6 and/or 13 of the Housing Act 1988."

Thanks for that, so definitely a Contractual Periodic and for a contractual periodic a S13 notice isn't required also when the agreement was signed you agreed to a rent increase as per the RENT clause above. It is clumsily written so I could be misinterpreting it.

If the intention is to serve notice and vacate I personally would just pay the increase for the short amount of time needed as it would take more energy than its worth to fight. If the intention was to stay put then yes worth fighting

Thank you. 

So does this mean that a Section 13 is not required at the end of the fixed period to raise the rent and if not , what if my family member doesn’t agree to it? 

The intention is for them to leave at the end of October anyway. 

It sounds like they’ll have no choice but to pay the increased rent for a few months 

My thinking was for them to not agree to it and let the landlord give them a Section 21 but I guess this isn’t going to work ?

Thanks again 

A decent AST that creates a Contractual periodic will have a clause re rent increases, these are normally triggered on either renewal or beginning of the second term and the rent can only increase once a year. Reading what you posted re rent increases I interpenetrate it as the rent will increase but amount not stipulated so the fact that is does appear to be a contractual periodic a S13 is not required just a letter from the Landlord stating the amount of increase and when payable from.

As it looks like a contractual periodic you cannot disagree with it as by signing the AST at the beginning of the tenancy she has already agreed to an increase, that doesn't stop her from trying to negotiate a smaller increase though

Durban

Robbo66 said:

Durban said:

Robbo66 said:

Durban said:

canaldumidi said:

Robbo66 said:

Durban said:

T

Also , can the Section 13 be served within the fixed period but only to take place after the fixed period ie served 29th May so rent increase to be paid from the 29th June which will be the first day of the periodic tenancy or can it only be served AFTER the fixed tenancy has ended? 

yes it can providing the rent increase takes effect after the

• tenancy has become statutory periodic, and

• 'minimum period' following service of the notice has expired

It is quite unusual for a Section 13 to be used for contractual periodic tenancies. You say that your family member has to give a contractual 1 months notice, if contractual then Section 13 is not required only for Statutory periodic.

Does her fixed term become statutory periodic of contractual?

Are you sure Robb66? I do not think a change can be made/proposed to a tenancy, in this case a CPT (possibly a SPT?) before it exists. For example a tenant cannot serve notice to end a periodic tenancy before that tenancy has started (ie during the fixed term). So similarly I believe the LL cannot serve a S13 during the fixed term.

Happy to be corrected if there is precedent or other evidence.

OP seems pretty sure it's a CPT:

I have advised them not to be pressured and let it go periodic and when it’s time to move out in October, give them the one months contractual notice that they need to give.

but I agree this may be in doubt.

OP - what is the exact wording in the contract?

I also agree that in most cases a CPT would make allowance for rent increases, but where it does not, a S13 can be used. OP said

I am a landlord myself and have read through the tenancy agreement and the only way the rent can be increased is with a section 13 notice after the fixed period at the end of June or with their agreement. 

So I assume either the contract is silent (hence OP says: "the only way the rent can be increased is with a section 13 notice"), or the contract makes specific reference to a S13 Notice.

OP - which is it?

Thank you 

" For a term of 12 months commencing on 29/06/2021 and then the tenancy continues as a monthly contractual periodic until ended following either party giving Notice. Please see the below termination clause as it contains important information about what you must do to end the tenancy. The term is to include any periodic continuation of the tenancy beyond the fixed term"

This Agreement creates a single tenancy that starts with a fixed term and then becomes monthly periodic. This would normally guarantee both parties rights and obligations for the fixed term and a minimum of one monthly period. The following two clauses allow either party to terminate the agreement earlier than that date, but not before the end of the initial fixed term: T1: The Landlord may bring the tenancy to an end at, or any time after, the expiry of the fixed term by giving to the Tenant at least two months’ written notice stating that the Landlord requires possession of the Property. A notice under section 21 of the Housing Act 1988 will suffice to implement this sub-clause. Such a notice can be served at the earliest at the commencement of month 5 on the first ever agreed tenancy or at any time during the tenancy on any subsequently agreed renewals. T2: The Tenant may bring the tenancy to an end at, or any time after, but not before, the expiry of the fixed term by giving the Landlord at least one month’s written notice stating that the Tenant wishes to vacate the Property. A letter will suffice to implement this sub-clause. While the tenancy is periodic the one month’s written notice must expire the day before a Rent Due date *

"  RENT: £**** per month subject to any increase in the rent which the Landlord may hereafter be entitled pursuant to Section 6 and/or 13 of the Housing Act 1988."

Thanks for that, so definitely a Contractual Periodic and for a contractual periodic a S13 notice isn't required also when the agreement was signed you agreed to a rent increase as per the RENT clause above. It is clumsily written so I could be misinterpreting it.

If the intention is to serve notice and vacate I personally would just pay the increase for the short amount of time needed as it would take more energy than its worth to fight. If the intention was to stay put then yes worth fighting

Thank you. 

So does this mean that a Section 13 is not required at the end of the fixed period to raise the rent and if not , what if my family member doesn’t agree to it? 

The intention is for them to leave at the end of October anyway. 

It sounds like they’ll have no choice but to pay the increased rent for a few months 

My thinking was for them to not agree to it and let the landlord give them a Section 21 but I guess this isn’t going to work ?

Thanks again 

A decent AST that creates a Contractual periodic will have a clause re rent increases, these are normally triggered on either renewal or beginning of the second term and the rent can only increase once a year. Reading what you posted re rent increases I interpenetrate it as the rent will increase but amount not stipulated so the fact that is does appear to be a contractual periodic a S13 is not required just a letter from the Landlord stating the amount of increase and when payable from.

As it looks like a contractual periodic you cannot disagree with it as by signing the AST at the beginning of the tenancy she has already agreed to an increase, that doesn't stop her from trying to negotiate a smaller increase though

Thank you very much. Most helpful 

Robbo66

Just for clarity as I don't always type what I'm thinking these are exerts from the tenancy agreement I have used in the past

1.6   Term

1.6.1      The Term shall be from and including 16/09/2021 to and including 15/03/2022 (the Fixed Element) and then the tenancy continues as a monthly contractual periodic (the Periodic Element) until ended following either party giving notice. Please see clause 2.5 as it contains important information about what you must do to end the tenancy.

1.6.2      The “Term” is to include any periodic continuation of the tenancy beyond the Fixed Element.

Rent 

1.7.8      Rent Increase

1.7.8.1   If for any reason the Tenant remains in possession of the Property, or the lawful Tenant of the Property, for more than 12 months, then the Rent will increase once each year.

1.7.8.2   The first increase will be on the first Rent Due Date more than 364 days after the commencement date.

1.7.8.3   Subsequent increases will be on the first Rent Due Date more than 364 days since the last rent increase.

1.7.8.4.  In clauses 1.7.8.2 and 1.7.8.3 the Rent will increase by the amount stated for the annual increase in the CPI (Consumer Prices Index as published by the Office of National Statistics) as quoted for the month two months prior to the month of the increase.

1.7.8.5   Not applying the rent increase at the first Rent Due Date more than 364 days after the commencement date, or the last rent increase date, will not then prevent the Landlord applying an increase on any future Rent Due Date.

1.7.8.6.  In clause 1.7.8.5 the Rent will increase by the amount of the increase in the CPI (Consumer Prices Index) from two months before the start of the tenancy or the last increase, whichever is the later, to the month two months prior to the month of the increase.

As you can see it clearly states what happens after the fixed term and also makes clear regarding rent increases

canaldumidi

Robbo66 said:

..... if a contractual periodic I believe a section 13 would be invalid and cannot be relied on for a rent increase, Section 13s are for statutory periodics only, the OP does mention a contractual 1 months notice and s13 so this needs clarifying for the correct advice to be given

S13 Notice can be used for a Contractual Periodic Tenancy, though as pointed out it is unusual, since the contract would normally specify how and when rent would increase. But in this case, the OP's contract specifically refers to S16 and S13:

"  RENT: £**** per month subject to any increase in the rent which the Landlord may hereafter be entitled pursuant to Section 6 and/or 13 of the Housing Act 1988."

S6 does not apply here, as that relates only to Statutory Peridic Tenancies. But S13 can apply:

13 Increases of rent under assured periodic tenancies.

(1)This section applies to—

(a)a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and

(b)any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

Durban

canaldumidi said:

Robbo66 said:

..... if a contractual periodic I believe a section 13 would be invalid and cannot be relied on for a rent increase, Section 13s are for statutory periodics only, the OP does mention a contractual 1 months notice and s13 so this needs clarifying for the correct advice to be given

S13 Notice can be used for a Contractual Periodic Tenancy, though as pointed out it is unusual, since the contract would normally specify how and when rent would increase. But in this case, the OP's contract specifically refers to S16 and S13:

"  RENT: £**** per month subject to any increase in the rent which the Landlord may hereafter be entitled pursuant to Section 6 and/or 13 of the Housing Act 1988."

S6 does not apply here, as that relates only to Statutory Peridic Tenancies. But S13 can apply:

13 Increases of rent under assured periodic tenancies.

(1)This section applies to—

(a)a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and

(b)any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

Yes , this is what confused me and made me think that a Section 13 did need to be issued otherwise why mention it in the AST

Also , the rent increase clause doesn’t mention the amount or percentage that it could increase by. 

Doesn’t this mean that a bad landlord could whack up the rent by an exorbitant amount to get rid of a tenant who doesn’t want to sign for another 12 months or just whack it up anyway because rents have increased by such a lot and because no Section 13 has been issued , it cannot be challenged at a tribunal ? 

canaldumidi

A rent clause in a tenancy ageement, to be valid, must be capable of being calculated. Either by specifying an exact amount in £, or a % amount, or by reference to some known rate, usually the CPI or RPI. A clause that simply says the LL can 'review', or otherwise increase the rent at an amount picked out of thin air is invalid.

An increase imposd by a S13 Notice (ie where there is no valid rent clause in the TA) can be for any amount the LL chooses. However the tenant can appeal the amount to the Rent Assessment Committee who will compare the proposed rent to local market rents. Irrespective of the size of the increase, if the proposed rent is in line with local rents it will be approved (so if the previous rent was very low, a large increase could be allowed). But if theproposed rent is higher than local market rents, it will be reduced.

Durban

canaldumidi said:

A rent clause in a tenancy ageement, to be valid, must be capable of being calculated. Either by specifying an exact amount in £, or a % amount, or by reference to some known rate, usually the CPI or RPI. A clause that simply says the LL can 'review', or otherwise increase the rent at an amount picked out of thin air is invalid.

An increase imposd by a S13 Notice (ie where there is no valid rent clause in the TA) can be for any amount the LL chooses. However the tenant can appeal the amount to the Rent Assessment Committee who will compare the proposed rent to local market rents. Irrespective of the size of the increase, if the proposed rent is in line with local rents it will be approved (so if the previous rent was very low, a large increase could be allowed). But if theproposed rent is higher than local market rents, it will be reduced.

I know this is an old post but I am revisiting it again because the time is coming close for the landlord to put up the rent for my young relatives

From the above , I interpret this that the rent clause in the tenancy agreement is invalid as no £ or % amount has been written into it.

In which case , a Section 13 is the only way without agreement that the rent can be increased?

Tenancy ends 28th June, plans are for them to be moving out end Oct anyway.

They can ill afford any rent increase at the moment but as said before , landlord likely to try and put rent up by as much as possible and this will be difficult for them to pay for the 4 months.

My thinking is that when they say they are going to put the rent up starting say the 29th June , for them to ignore until the last minute and then let them know it is an invalid clause.  This should buy them a month as they won't have to pay the increase at the end of June?

Agent then has to issue a Section 13 which would have to be another months notice so that will buy them a second month and they won't have to pay the increase at the end of July? 

This leaves them then 2 months in which to pay that increase , the end of Aug and the end of Sept and then move out end of Oct.

Does this sound like a reasonable plan? 

canaldumidi

Durban said:

canaldumidi said:

A rent clause in a tenancy ageement, to be valid, must be capable of being calculated. Either by specifying an exact amount in £, or a % amount, or by reference to some known rate, usually the CPI or RPI. A clause that simply says the LL can 'review', or otherwise increase the rent at an amount picked out of thin air is invalid.

An increase imposd by a S13 Notice (ie where there is no valid rent clause in the TA) can be for any amount the LL chooses. However the tenant can appeal the amount to the Rent Assessment Committee who will compare the proposed rent to local market rents. Irrespective of the size of the increase, if the proposed rent is in line with local rents it will be approved (so if the previous rent was very low, a large increase could be allowed). But if theproposed rent is higher than local market rents, it will be reduced.

From the above , I interpret this that the rent clause in the tenancy agreement is invalid as no £ or % amount has been written into it. Rent Clause (below) clearly refers to S13 Notice.

In which case , a Section 13 is the only way without agreement that the rent can be increased? Rent Clause (below) clearly refers to S13 Notice.

Tenancy Fixed Term ends 28th June, plans are for them to be moving out end Oct anyway. Make sure they serve proper notice to end the tenancy.

.....

My thinking is that when they say they are going to put the rent up starting say the 29th June , for them to ignore until the last minute and then let them know it is an invalid clause.  This should buy them a month as they won't have to pay the increase at the end of June? Unless LL serves a S13 Notice in, say, May..

Agent then has to issue a Section 13 which would have to be another months notice so that will buy them a second month and they won't have to pay the increase at the end of July? Unless LL serves a S13 Notice in, say, May..
Of course T has the option to appeal the S13 to the Rent Asessment Committee. What are local market rents?

"  RENT: £**** per month subject to any increase in the rent which the Landlord may hereafter be entitled pursuant to Section 6 and/or 13 of the Housing Act 1988."

..............................................................................................................

Durban

Thank you very much 

From my opening post there was some confusion over whether the rent clause in the tenancy agreement is valid. 

It appears that the only way to increase is by the Section 13 notice or agreement even though it is a contractual tenancy agreement 

Yes , they can give the Section 13 notice  in May but as mentioned the agent will try and pressurise them into signing a new fixed agreement with a new increased rate which I’ve already advised them not to sign 

Hopefully they can stall this until the last minute and state they want to go periodic

This may  buy some time as the agent will only then serve the Section 13  

I guess this all depends on how on the ball the agent is. The aim is to pay the rent increase for as little time as possible before they move out 

canaldumidi

Let us know what transpires in due course. It's always nice toknow how these things turn out!