Rent rising by 13%, can i challenge this.

markymark10_2

Hi there. I'm just looking for a little advice if anyone can help. I've looked on the shelter and other websites but cant get a definitive answer. I'm on an A.S.T which was renewed March 2021 for 6 months. Its now lapsed to periodic I assume.

I've received an email from my agent stating that a rent review has been carried out and the rent is going up from £525 to £595 a month. There is a rent review clause in my contract but it doesn't include a formula or system for the increase to be calculated just that it can be applied annually. I've been in the house since Oct 2020 .

I'm not going to pay it as i believe it is well above what it should be but I'm not sure what grounds I have to challenge it other than trying to negotiate. I believe at best the rent should be 560 and no higher given the current rate of inflation. As a section 13 notice hasn't been issued and the rent review clause is in my contract albeit without any formula. I assume that I cant take it to a rent tribunal. Are there any other paths I can take which I've not thought about to make renegotiation easier. Also if they decide not to play ball and issue me with notice how long do they have to give now? contract says 2 months most sites state 4 months.

Many thanks in advance.

canaldumidi

markymark10_2 said:

..... There is a rent review clause in my contract but it doesn't include a formula or system for the increase to be calculated just that it can be applied annually.

Then it is an unenforcible clause.

The only way the landlord can increase the rent now is via a S13 Notice.

Or, of course if you start paying the new rent (thereby accepting it).

Or of course, by negotiation.

Now read

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

MobileSaver

As @canaldumidi says, you can ignore the request to pay more rent however as you are no longer in a fixed term the landlord can serve a S21 giving you 2 months notice (assuming you are in England or Wales - although Wales is due to change to a longer notice period in the near future.)

Unless you are happy to find a new rental, your best bet is to negotiate with the landlord.

[Deleted User]

Are there other similar properties. What is the going rate. Negotiate to 560... everyone happy?

hangryconsumer

You can refer to the Rent Assessment Committee (RAC). They will decide if the increase is fair or not. https://www.netrent.co.uk/rent-assessment-committees/

You don't legally have to pay the increase without the S13 but as others said, they might evict you.

I was once told about a rent increase in my 3rd year in a place, didn't pay, the (private) landlord contacted me to ask why it hadn't been paid, so I told him because there was no S13 and the rent wasn't legally due. He issued S13, and I took it to RAC plus offering the landlord the chance to issue S21, who declined it. Found a new place, gave notice to leave and cancelled the RAC hearing. I did all that to delay having to pay the new rent whilst I found a new place so it worked for my circumstances at the time. You might be less flexible and find yourself chucked out when you want to stay.

HampshireH

Will you get the same for £560 if you leave?

Or would moving make you worse of financially (all the other costs to think about too)

BikingBud

What are your moving costs and how might the disturbance affect you?

Bear in mind your exposure to fees for a new place and any risk of loss of deposit.

I know £35 per month may seem a lot but it may cost you more than 12 months difference, £420, to get sorted elsewhere and still have a load of turmoil.

Try to discuss and see if you can get mid ground and seek escalation agreement for future years at the same time.

Exodi

You can make figures portray what you like.

You mention your AST was renewed before lapsing. How long have you lived in the property in total? Have you had any other rent increases for that period?

Obviously if you've lived in the property for over a year and this is your first increase then it's probably more justified. It wouldn't make any sense to try negotiate off the current inflation rate in those circumstances.

Similarly, it all depends on what other properties are letting for. If £595 is more expensive than everywhere else - renegotiate on those grounds or move. If £595 is still less than everywhere else - is it worth it to be potentially evicted over and pay more elsewhere?

I think people in general don't look at the bigger picture with these sorts of things.

newsgroupmonkey_

We had a similar thing happen to us.

We simply replied to the Letting Agent, explaining that it was above a reasonable amount and made a suggestion meeting somewhere in the middle. They agreed.

We also explained that whilst the cost of living had gone up by X%, our wages hadn't, and raising our rent would make it even tighter for us.

markymark10_2

Thank you for all your replies and help in this matter. To be honest I think its more the agent than the landlord and I do have options should I leave the house. Its the principle that the agent thinks that they can just pop off an email and thats ok job done. I'll be renegotiating on my terms now I know what my options are and making sure they do their job properly, Thank you to all that have replied, you have made my decision much easier.

newsgroupmonkey_

markymark10_2 said:

Thank you for all your replies and help in this matter. To be honest I think its more the agent than the landlord and I do have options should I leave the house. Its the principle that the agent thinks that they can just pop off an email and thats ok job done. I'll be renegotiating on my terms now I know what my options are and making sure they do their job properly, Thank you to all that have replied, you have made my decision much easier.

Bang on.

I was renting another property. The LA sent me a letter to say they were putting the price up. I don't think they realised that we'd actually built a rapport with our LL.

The LL was absolutely horrified and instructed the LA to not only withdraw the rise, but that any future rises would be negotiated between us and themselves. We lived there another 4 years and didn't have a rise.

Our LLs weren't so much accidental, more that it was a lifestyle choice as they'd moved elsewhere for a job contract and weren't sure if it was a permanent move.

As far as they were concerned, as long as their costs didn't go up (they didn't) then they wouldn't increase our rent.