Is there a limit to how much a landlord can increase rent?

macman

Some context here would help: when was the rent last increased? 'Not for years' doesn't really help us.

billy2shots

Sounds like the landlord has done a good thing that could potentially backfire. 

They have let out a flat at below market rate (for whatever reason). Now they are raising rent to still below market rate and people are questions it. 

Has the OPs sister been saving the difference between market rate and what she has been paying or spending thinking this charitable landlord will stay this way forever. 

A big increase it maybe but sounds completely fair given the info provided. It's actually surprising the OP is questioning this / looking for a way out of not paying it. 

I am not a landlord or renter but in this situation I think I would thank my lucky stars I had the better deal in recent years and accept things had to change and some point. 

diystarter7

Hi OP

Possibly I missed it but is a LA used?

People we know rent out below markert rents and one we know had not raised the rent for years as they were very happy with the T's. Come a slight increase after several years, the T tried to negotiate it down

Best practice is to raise it every year and then not to drop a massive rise. ATM, 10% rises are common around London as is inflation above that.

If T is not happy, they can always move. If a T moves, costs to LL to find a new T, often re-decor, the risks of a new unknown, LA fees, time spent etc etc. Therefore in the interest of both the LL & T to stick together if feasible.

dimbo61

The biggest problem and not really mentioned here is that the Bank of England has increased the BOE base rate from 0.1% to 3.5% in the last 12 months.
Most LL,s have interest only  mortgages so that means the Interest paid  on any outstanding mortgage has doubled.
IE a 100% increase in mortgage costs for the LL which cannot be offset against the rent due to section 24 ( tax changes )

Sarah1Mitty2

Caiper said:

Hello everyone posting on behalf of my sister

She signed a years contract which moved to rolling monthly years ago. Her rent has been at £600 pm through all time. Her landlord has informed her that he wishes to raise the rent to £900. This is still below market rate (she can't see anything else in the borough for under £1050) so is not an unfair amount but still a big jump. Is this allowed? If it makes a difference she receives Universal Credit and lives in England.

Thank you

Universal credit is going up soon, maybe that is the reason, or the landlord is afraid of a rent freeze and eviction ban like Scotland`s one coming into force in England? She should just move to a cheaper flat/area and leave the landlord to deal with the void.

MobileSaver

Sarah1Mitty2 said:

Caiper said:

Her rent has been at £600 pm through all time. Her landlord has informed her that he wishes to raise the rent to £900. This is still below market rate (she can't see anything else in the borough for under £1050) so is not an unfair amount but still a big jump.

She should just move to a cheaper flat/area and leave the landlord to deal with the void.

You may be happy to live in a bedsit in an undesirable part of the city but most people aspire to something a little better.

On a serious note the OP already said that even the proposed increase is still below anything else available in the area so where do you suggest they move to?

billy2shots

MobileSaver said:

Sarah1Mitty2 said:

Caiper said:

Her rent has been at £600 pm through all time. Her landlord has informed her that he wishes to raise the rent to £900. This is still below market rate (she can't see anything else in the borough for under £1050) so is not an unfair amount but still a big jump.

She should just move to a cheaper flat/area and leave the landlord to deal with the void.

You may be happy to live in a bedsit in an undesirable part of the city but most people aspire to something a little better.

On a serious note the OP already said that even the proposed increase is still below anything else available in the area so where do you suggest they move to?

Somewhere more expensive just to spite the landlord. 

@Crashy_Time/Sarah@Mitty2 does have a different view of things. 

LegallyLandlord

diystarter7 said

The poster that cited "2/3%" not sure what part of the uk that is and they have not responded.

Thanks

Hi

As @_Penny_Dreadful says, I did mean it’s better to do smaller annnual increases like 2-3% each year to avoid big jumps like this, which is awful. 

I’m in Kent and the local market rents have gone up 10-15% since Covid. I’m taking the long term view by keeping rent increases low but annual (apart from Covid when I didn’t put them up). I have great long term renters who I want to keep, but equally being a landlord is a business. 

I just feel sorry for OP with a 50% increase. Not what I would do. 

caprikid1

LegallyLandlord said:

diystarter7 said

The poster that cited "2/3%" not sure what part of the uk that is and they have not responded.

Thanks

Hi

As @_Penny_Dreadful says, I did mean it’s better to do smaller annnual increases like 2-3% each year to avoid big jumps like this, which is awful. 

I’m in Kent and the local market rents have gone up 10-15% since Covid. I’m taking the long term view by keeping rent increases low but annual (apart from Covid when I didn’t put them up). I have great long term renters who I want to keep, but equally being a landlord is a business. 

I just feel sorry for OP with a 50% increase. Not what I would do. 

Personally I don't tend to raise rents unless I really need to IE new boiler wanted or kitchen, quite frankly the government takes so much in tax it feels like a tax rise for the government everytime I increase rents.

I make sure when I get new tenants I get full market value and keep an eye on it though.

chrisw

caprikid1 said:

LegallyLandlord said:

diystarter7 said

The poster that cited "2/3%" not sure what part of the uk that is and they have not responded.

Thanks

Hi

As @_Penny_Dreadful says, I did mean it’s better to do smaller annnual increases like 2-3% each year to avoid big jumps like this, which is awful. 

I’m in Kent and the local market rents have gone up 10-15% since Covid. I’m taking the long term view by keeping rent increases low but annual (apart from Covid when I didn’t put them up). I have great long term renters who I want to keep, but equally being a landlord is a business. 

I just feel sorry for OP with a 50% increase. Not what I would do. 

Personally I don't tend to raise rents unless I really need to IE new boiler wanted or kitchen, quite frankly the government takes so much in tax it feels like a tax rise for the government everytime I increase rents.

I'm not keen on that approach, it makes it appear that the tenants are paying directly for the new boiler or whatever.

They may well be in practice, but I think it feels more palatable if it appears to be a more general across the board increase.