Rent rising by 13%, can i challenge this.

saajan_12

markymark10_2 said:

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 don't think that would be enforceable without a formula (what if they "reviewed" and decided it should be £1 mil?). However I haven't seen any case law either way, so just an educated guess. 

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. Is the £560 based on an inflationary increase to the old rent? If so, the old rent could have been low or high to start with.. What matters is the average market rent - ie for a similar property / area, whats the going rent? That tells you what you'd get elsewhere and what the LL could get if you left. 
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. - they can increase rent by mutual agreement or S13. So state that you don't agree to this proposed rent and will be staying at the current level. If / when they issue a S13, dispute it with the tribunal then. 
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. - Its currently back to the 2 months notice (4 was during covid). Note that's notice to go to court, it'll be a further X months to get a court date etc, though you do have to pay the court fees for that or move earlier yourself. 

Many thanks in advance.

Comments in line.. key is how does the £595 or £560 compare with market rents? 

I understand its annoying they are being so presumptive - some agents dont' really understand their contracts and/or hope most people (tenants and LLs) will just accept the agent's word. Try pushing back, they may fold..