Rent Increase - unreasonable time and amount ?

bradshawce

Hi All,
hope you can help here

Our current tenancy is up for renewal on 7th April 2022 and the LL's agent has just sent us an email on 1st March saying that he wants to increase the rent in the renewal by £300 to £1995 (+17.5%) and has given us 1 week to respond.
We've been at this property for 11 years, never missed any payments and have been good tenants.

a. Is this an unreasonable increase?
b. Can they do this within 1 month of the renewal?  I thought they had to give 6 month notice as per section 13 (3) (a) of the Housing Act or have I misread it?

Many thanks
Chris

PRAISETHESUN

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

The 1 week notice is too short (although if this is a completely new TA it might not really matter), and the % increase seems large - what does your TA say about rent increases? I'd decline and continue onto a periodic tenancy once the fixed term finishes.

Ultimately I feel you could fight it for a while, but there's also nothing stopping your LL simply just issuing S21 and eventually have you removed from the property if you don't agree to it. 

theoretica

17.5% is a large increase - but it might be reasonable depending on how it compares to the going rate for the area, and how long it has been since the last increase. 

Exodi

a) can't know without further details. How much do other similar properties in the area rent out for? How long have you lived there? Have you had a rent increase in the past? Obviously if you've lived there for 10 years and this is the first increase, then very much justified. It's also relevant to know what comparable properties are renting out for as this may help you negotiate.
b) Do you have terms surrounding rent review in your contract? If not, then I believe they'd have to serve a s13 notice. I expect you're on an AST, did you move in 7th April 2021?

theartfullodger

You & landlord can informally agree an increase in any timescale you like (eg to be effective today at 19:37).  

But for landlord to enforce if you don;t agree it's longer.  

Nothing preventing you proposing a rent decrease.


There is absolutely no need for a tenancy renewal. If nothing is done it will continue as a "monthly periodic tenancy" forever unless someone ends it, with no rent change (until someone enforces a rent change).

bradshawce

We had an increase about 2 years ago but this one would be broadly in line with what other properties rent for. Although he's never decorated or updated the property so seems a little high still. Hard to judge. 
There is nothing in the TA about rent increases though.

What would going to a periodic tenancy mean for us ?

saajan_12

bradshawce said:

Hi All,
hope you can help here

Our current tenancy is up for renewal on 7th April 2022 and the LL's agent has just sent us an email on 1st March saying that he wants to increase the rent in the renewal by £300 to £1995 (+17.5%) and has given us 1 week to respond. - so he's asking you to sign a new contract? you can agree, negotiate or refuse & move onto a periodic tenancy. 
We've been at this property for 11 years, never missed any payments and have been good tenants.

a. Is this an unreasonable increase? - The % isn't as relevant, as the prior rent might just have been low. How does the new rent compare to market rents in the area? 
b. Can they do this within 1 month of the renewal? - 1st March -> 7th Apr is over a month..
I thought they had to give 6 month notice as per section 13 (3) (a) of the Housing Act or have I misread it? - No. At this stage they're just offering a new contract, which only takes effect if you agree. So there's no required notice the timing is just whenever you agree. Re Section 13, you misundertand.. its only 6 months notice if your tenancy periods are annual (usually when you pay rent annually). Most would be monthly, in which case the notice is 1 period = 1 month. 

Many thanks
Chris

The key is whether the new rent is in line with market rents in that area (rather than the % increase)
* If yes, then whats the complaint - you've probably had a cheap rent until now 
* If no, then push back and dispute a future Section 13 as well. You should win and if not then look to move

Re how it works:
1. at this stage they're just asking you to voluntarily agree to a new fixed term. If you sign then it comes into effect whenever you agree. There's no notice or Section 13 governance because you can always just negotiate / refuse.
2. If you refuse, then you'd automatically roll onto a periodic tenancy (either SPT or CPT depending on what your last contract says). 
3. On a periodic contract the LL can serve a Section 13 notice to force a rent increase without your agreement. They have to give you 1 tenancy period notice - this is usually 1 month assuming you were quoted a monthly rent amount etc. The 6 months notice is only if you are on an annual tenancy and pay rent annually, would give 1 year notice to move out etc (this is different to having a fixed term of 1 year).
4. Once they serve the notice, you can start paying the new rent or challenge it at tribunal. They'll look at how the new rent compares to the market, and impose a more reasonable rent if deemed necessary. Whatever they decide would be your new rent, so if you then disagree, then you'd have to leave or be in arrears.