Rent increase linked to RPI

Haddenham35

Hi,

Asking on behalf of my sister-in-law who today received a letter stating that at the end of their tenancy term in October the rent will increase by 47% if they wish to renew.
We've had a look at the tenancy agreement and it contains the following:

The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months.

Will this hold any weight in the negotiation or does the landlord not need to honour that? Would be good to get a steer before we know how hard to push back.

Thanks in advance,
Tom 

anselld

If the existing contract continues then yes, they must honour the contract terms.
However they are free to *offer* a new contract on new terms which your SIL is free to decline.  If she declines the L has the option to increase the rent in line with RPI or to serve s21 notice.
Assuming she has been a good tenant in other respects the first step would be to negotiate, although the opening bid from the L suggest they have decided they want her out for whatever reason.
Has this come via an Agent or from the Landlord?  If possible negotiate with the Landlord direct as the Agent has nothing to lose and everything to gain by evicting tenants for no good reason.

Haddenham35

All understood - thanks for the information. So, as they are coming to the end of their contract, the landlord can just serve notice and offer to someone else for the 47% increased rent figure. They have been model tenants and the note from the agent (not landlord) said because you are such good tenants it's only a 47% increase. I think the direct-to-Landlord approach is the best next step. Thanks again!

sammyjammy

How long have they been there and has the rent risen in that time?  The answers to those questions will be a factor in whether the rise is reasonable or not.

anselld

Haddenham35 said:

All understood - thanks for the information. So, as they are coming to the end of their contract, the landlord can just serve notice and offer to someone else for the 47% increased rent figure. They have been model tenants and the note from the agent (not landlord) said because you are such good tenants it's only a 47% increase. I think the direct-to-Landlord approach is the best next step. Thanks again!

Yes they can serve notice, but that just gives them the option to start the eviction proceedings.  It is not an immediate requirement to leave.   And why would a Landlord wish to go down that route with a decent Tenant?

It is worth comparing the current rent with the local market to confirm if rent has falen behind market rates over a number of years but it seems very unlikely that it has fallen 47% behind.  Good luck with the Landlord negotiation.

 

TheJP

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

anselld

TheJP said:

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

The contract states "The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months".  It cannot possibly be 47%.

TheJP

anselld said:

TheJP said:

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

The contract states "The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months".  It cannot possibly be 47%.

Yes and how i read it is if the rent has not increased at all and the SIL has been in the house for quite some time then the LL can increase the rent in line with RPI from 2021 figures which could be 47% if no increase has taken place say in 15 years. We don't know much detail about how long the SIL has been renting the house and whether any increases have taken place.

anselld

TheJP said:

anselld said:

TheJP said:

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

The contract states "The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months".  It cannot possibly be 47%.

Yes and how i read it is if the rent has not increased at all and the SIL has been in the house for quite some time then the LL can increase the rent in line with RPI from 2021 figures which could be 47% if no increase has taken place say in 15 years. We don't know much detail about how long the SIL has been renting the house and whether any increases have taken place.

That may well be what the Agent is claiming but that is not how the contract is written.

Norman_Castle

TheJP said:

anselld said:

TheJP said:

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

The contract states "The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months".  It cannot possibly be 47%.

Yes and how i read it is if the rent has not increased at all and the SIL has been in the house for quite some time then the LL can increase the rent in line with RPI from 2021 figures which could be 47% if no increase has taken place say in 15 years. We don't know much detail about how long the SIL has been renting the house and whether any increases have taken place.

But can they stack 15 years increase. Thats not how much its increased over the previous 12 months.

TheJP

Norman_Castle said:

TheJP said:

anselld said:

TheJP said:

Is the 47% increase inline with RPI? If they have been there for a long time and not had any increase then this may reflect current market. Best to check what the RPI is against current rent.

The contract states "The Rent will increase in line with the average of the Retail Price Index increases over the previous 12 months".  It cannot possibly be 47%.

Yes and how i read it is if the rent has not increased at all and the SIL has been in the house for quite some time then the LL can increase the rent in line with RPI from 2021 figures which could be 47% if no increase has taken place say in 15 years. We don't know much detail about how long the SIL has been renting the house and whether any increases have taken place.

But can they stack 15 years increase. Thats not how much its increased over the previous 12 months.

Its a difficult one as there may be more to the contract extract we aren't seeing. Either way its pretty shady to whack a whopping 47% increase especially in the current financial climate.