Rent Increase on Assured Shorthold Tenancy

Craigdav1993

Hello! We have been renting a flat on an Assured Shorthold Tenancy for 1 year since 01/03/21 ending 28/02/22.

We asked the agency to renew the contract and we had to get in touch again today as our contract expires in 12 days and we still hadn’t heard from the agency.

Today we were told the landlord is happy to renew, but wants to increase the monthly rent by 5% (£50).

Am I right assuming that a 12 days notice isn’t enough on a Assured Shorthold Tenancy? 

Does anyone know how much notice should’ve been served and if we can refuse the increase?

We have been paying rent monthly and the tenancy agreement was for one year (first year in the property).

thank you!

Slithery

Craigdav1993 said:

We asked the agency to renew the contract and we had to get in touch again today as our contract expires in 12 days and we still hadn’t heard from the agency.

Why did you have to get in touch? Your tenancy continues either way. Anyhow, read..

Rent increases

theartfullodger

Just do nothing.  Old tenancy continues, as monthly periodic, same old rent.  More flexibility for you to leave when you like than if renewed. 

canaldumidi

No. The new contract could be offered on the day the previous one expires.

If you sign the new contract it is binding. However yes you can refuse the increase by declining to sign the new contract. You'll then move to a periodic tenancy at the old rent. See also

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

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?

saajan_12

Craigdav1993 said:

Hello! We have been renting a flat on an Assured Shorthold Tenancy for 1 year since 01/03/21 ending 28/02/22.

We asked the agency to renew the contract and we had to get in touch again today as our contract expires in 12 days and we still hadn’t heard from the agency. - why did you HAVE to get in touch? If no one does anything, then the tenancy automatically becomes periodic from 01/03/22. 

Today we were told the landlord is happy to renew, but wants to increase the monthly rent by 5% (£50). - is the new rent in line with market rents for the area? The % increase it self is less meaningful as the original rent might have been low / high..

Am I right assuming that a 12 days notice isn’t enough on a Assured Shorthold Tenancy? - no, this isn't a notice of one party unilatterally  deciding something and 'notifying' the other. A contract renewal is a mutual agreement, and can be done on the last day even. 

Does anyone know how much notice should’ve been served and if we can refuse the increase? - Notice is irrelevant at this stage. Yes can you refuse - either negotiate the amount prior to signing or don't sign and just go onto a periodic tenancy. 

We have been paying rent monthly and the tenancy agreement was for one year (first year in the property).

thank you!

At this stage they're just offering a contract renewal - that's up for negotiation based on whatever terms and rent you and the LL agree. It only kicks in if / when you agree, so notice isnt' relevant here and it can be signed at any time, even on the last day of this contract. 

If you don't sign, then you automatically go onto a periodic tenancy from 1st March. The terms of that depend on what (if anything) your current contract says about after the fixed term. If it specifies terms, then you're on a CPT and follow what it says, particularly about rent increases and notice. If its silent then you'd go onto a SPT at the same rent and can leave with 1 tenancy periods notice. 

Note on a periodic tenancy, the LL CAN serve Section 13 notice to unilaterally impose a rent increase after the 1 tenancy period notice. Then if you do nothing, then this becomes the new rent. If you challenge it via tribunal, they would look at if its fair vs the market and decide the new rent.