Rent increase

Deborah_51

Hello,

I moved into a property in September 2019. I have been on a periodic tenancy since March 2021. On 29th November 2022 I received an email inviting me to "renew" my tenancy for a period of 12 months at an increased rent, from 16th December 2022. 

I contacted the agent, and said that according to .Gov, they are required to give me at least a month notice of a rent increase, that I would pay my normal rent on 16th December, but would renew and agree to the increase from 16th January 2023.

They have responded & said that it wasn't a notice of rent increase, just an invitation to renew, at a higher rent. 

I don't mind saying that I'm rather confused. They seem to feel they are negating the notice requirement for the rent increase, by creating a new tenancy agreement. Can anyone please help me understand this? 

lika_86

You don't have to renew, you could stay on a periodic tenancy on your existing rent for now, but if you do agree to sign a new agreement then the rent will be higher. 

theartfullodger

You are free to ignore them.  If you do nothing the tenancy continues, forever... Landlord/agent may proceed to formally issue notice to increase rent - if so post again & tell us.

Renewal is probably driven by agent wanting to charge landlord their % for 12 months...

Nothing legally preventing you proposing a lower rent.

LegallyLandlord

The letting agent gets paid if a tenant enters into another fixed term. My local agents charge £250 as it is let only. If they manage the property, they’ll get higher fees  as it’s based on a percentage of the gross annual rent. 

You can refuse to sign up for another year and go to a rolling periodic tenancy. If you do this, the landlord can terminate at any time with 2 months notice. They can’t do this if you are in a fixed term. Going to a periodic tenancy gives you flexibility to terminate as well, with just one month notice. 

If you don’t “renew”, it will turn into a periodic tenancy at the same rent unless they agree a rent increase with you. 

If you don’t agree to the rent increase, they’ll serve a notice on you to increase it. but they can’t force you to sign up to another fixed term. No harm in trying to negotiate. 

Here’s some good advice from the gov.uk website (which I think you have):
https://www.gov.uk/private-renting/rent-increases

dimbo61

So you have lived in the property for over 3 years with No increase in the rent during that time ?
Now the Lettings Agents/ LL are trying to increase the rent by £xxx a month and offering you a new 12 months tenancy agreement
What do you think ?
What is the local rental market like ?
Are you paying under the market rent ?

I might add that the BOE has increased interest rates 8 times in the last 12 months and another rate increase due on Thursday.
For many Landlords this may mean a 100% increase in the Interest only mortgages they pay.
Rates have gone from 0.1% to 3%
Energy costs have gone up and so has food costs.
The only thing I notice not going up are my wages 😭

Johnjdc

dimbo61 said:

I might add that the BOE has increased interest rates 8 times in the last 12 months and another rate increase due on Thursday.
For many Landlords this may mean a 100% increase in the Interest only mortgages they pay.
Rates have gone from 0.1% to 3%

Ah yes, all those times the landlord cut my rent as interest rates fell from 6% to 0%.

So, zero times, that was.

caprikid1

"Ah yes, all those times the landlord cut my rent as interest rates fell from 6% to 0%."

Fortunately with increased interest rates and falling property prices combined with increased legislation there will be a lot less landlords to complain about....

diystarter7

lika_86 said:

You don't have to renew, you could stay on a periodic tenancy on your existing rent for now, but if you do agree to sign a new agreement then the rent will be higher. 

Hi
A friend of our had someone on a rolling tenanacy after two years of 12 months AST agreements, then they went to rolling tenancy as landlord was uncertain if to remain aLL. The LL then decided that he wanted to remain a LL and put in a request for 12 month AST. The T refused and the LL soon after started the legal eviction process and the same day the T agreed to a 12 months AST. However, at about 10 months the T asked the LL to let the AST end early and gave good reasons he wanted to move back near parents that were unwell. The LL agreed and told the T to give him a weeks notice and T left at 11.5 months,

Many times talking and keeping a good relationship between LL  & T works for both sides

Thnaks

hazyjo

If the tenant was paying regularly and all was trouble-free, the LL would be daft (being polite) to kick them out for not signing a 12 month agreement.

(Couldn't quote post above, replying to diy...)

Hedgepigs

Well yes, the 'invitation' to sign a new fixed term is separate to a s13 type rent increase, so the month notice doesn't apply. But you don't have to accept it. You can ignore it and stay on the periodic tenancy at your current rent (they might well then issue a s13 - or even a s21 if they felt that way inclined, though the latter is probably less likely). 

It depends what you want to do. If you would prefer a fixed term, you can agree to it on their terms, or negotiate. There would seem to be little logic from their side in refusing your original offer of signing a new fixed term for their requested rent in January rather than December - so if that's what you want to do, go back to them and say you still feel 16th Dec is too short notice to work for you, but you would be happy to sign a new fixed term in January.

mattyprice4004

Johnjdc said:

dimbo61 said:

I might add that the BOE has increased interest rates 8 times in the last 12 months and another rate increase due on Thursday.
For many Landlords this may mean a 100% increase in the Interest only mortgages they pay.
Rates have gone from 0.1% to 3%

Ah yes, all those times the landlord cut my rent as interest rates fell from 6% to 0%.

So, zero times, that was.

Yes, but in that time I'm sure inflation creeping up negated any possible 'discount' you felt you're entitled to. 
Now we have both factors the other way - rampant inflation combined with interest rates rocketing - so its only logical that rent will rise, and at a much higher rate than people are used to. 

For the sake of clarity, I am a landlord but own outright - and my tenants have signed a (very) long lease with no rent increases to protect both them and I.