AST agreement with no rent review clause ?

worn_out

Just renewed another 12 months and received the agreement to sign, but unlike all previous years agreements this one has no rent review clause for the end of the term..

I've queried with the agents and they've just told me "Near to the end of your 12 month term, we would be in touch with you regarding the renewal of the tenancy. At this point, the rent will be reviewed and you will be asked for your intentions.". So why decide to remove this from the agreement, is there any significance in this or am I just being a bit neurotic ?

_Penny_Dreadful

You're being neurotic

propertyrental

Gives them slightly more flexibility on the amount they can impose if you go periodic.

They can propose whatever they llke for the next fixed term, you can accept, negotiate or reject. If you reject, you can leave or simply move to a periodic (rolling) tenancy at the old rent.

The LL can then if he wants serve a S13 to increase the rent.

In fact the same is true even if there IS a rent review clause. The LL can ignore it and propose whatever they want and you can accept negotiate or reject. If you reject, you can leave or simply move to a periodic (rolling) tenancy at the old rent.

The difference is that with a rent clause, the LL cannot use a S13 notice, but can increase the rent in line with the clause during the subsequent periodic tenancy.

More here:
Post 4: Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

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

LegallyLandlord

It’s common for ASTs not to have rent review clauses as it gives landlords the most flexibility. 

One thing to note is that if the landlord increases it to above the market rent using a s13 notice, the renter should have a good case to challenge it in a rent tribunal. 

Here’s more info on the ins and outs on rent reviews: 
https://theindependentlandlord.com/rent-increase-landlords/

worn_out

Is there a 'register' of market rents which landlords always seem to be aiming at ? Who calculates it, and are the details freely available to have a look at ? I've had this quoted to me many times but when I ask how it's arrived at, which houses have been included I'm always met with a blank stare..  why the secrecy ?.

chrisw

worn_out said:

Is there a 'register' of market rents which landlords always seem to be aiming at ? Who calculates it, and are the details freely available to have a look at ? I've had this quoted to me many times but when I ask how it's arrived at, which houses have been included I'm always met with a blank stare..  why the secrecy ?.

There is no register of market rents, it works in a similar way to estate agents valuing houses. 

Letting agents will have an idea of what they can let a property for based upon its type and location. 

Getting quotes from at least 3 local letting agents should give a good idea of the going rate or market rent for a particular property. 

_Penny_Dreadful

LegallyLandlord said:

It’s common for ASTs not to have rent review clauses as it gives landlords the most flexibility. 

One thing to note is that if the landlord increases it to above the market rent using a s13 notice, the renter should have a good case to challenge it in a rent tribunal. 

Here’s more info on the ins and outs on rent reviews: 
https://theindependentlandlord.com/rent-increase-landlords/

It’s pretty pointless for those with AST to challenge a Section 13 at tribunal. If you try to challenge the rent increase you’re pretty much guaranteed to get a Section 21 through the door.