Rent increase

Tonyacs

Hi all,

I am hoping to find some advice on rent increases by my landlord. I live in a share house with two others. I pay £680 all inclusive of all bills per month. My landlord states she has to increase my rent by £150 per month due to the bank of England interest rate and due to the increasing fuel price crisis.

It is my understanding that rent has to be increases by the retail price index and not the BoE interest rates and the increase can only be a smal % but not sure what it is for certain. Regarding the energy, I appreciate we are in unprecedented times for energy prices but do any of you know if this is correct or is my landlord being fair.

Your thoughts would be appreciated.

Many thanks

propertyrental

Tonyacs said:

...

It is my understanding that rent has to be increases by the retail price index and not the BoE interest rates and the increase can only be a smal % but not sure what it is for certain. 

Where did you get this idea? Is it in your contract?

Does your LL live in the same property (are you a lodger?)?
Are you and the other two all on a single 'joint and several' tenancy? Or do you each have individual contracts?
Is your contract fixed term or periodic (rolling)?
What does your contract say about rent increases?
Have you read the stickie?

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

Stubod

Increases "may" be based on RPI/CPI or whatever if this is stated in the contract, if not then there are no real restrictions on how much rent can be increased and it is between you and your landlord to negotiate as you see fit.

theartfullodger

Answered assuming this is England.

Do you have an individual (just you) or a joint (with other occupants) tenancy agreement?  Does landlord live in same building please? 

Assuming an AST then increase can be anything agreed between landlord & tenant.  If no agreement landlord may attempt to enforce increase they want which tenant may appeal formally through tribunal.

Nothing preventing you proposing some other increase or, indeed, a decrease .

Done any reading or education on your rights as a tenant?  Bet Landlord has....

macman

Context: when did your TA commence, and when did it last increase?
Private rentals are not price-regulated in any way, I have no idea where you got that idea from.

LegallyLandlord

The short version is that unless your  assure shorthold tenancy agreement says otherwise, landlords can increase the rent as they see fit. BUT if you don’t agree with the increase and take them to a Rent Tribunal, you will probably win if the new rent is over the market rent for a new tenancy of that type of property in that condition in that area. 

Personally, I think that increase is too high in one go. It’s better to do it by a little each year. But it sounds like there’s no ultimately much you can do other than negotiate, move out or accept it, unless the rent os higher than the market. 

A longer version of how landlords should handle rent increases in England is here: https://theindependentlandlord.com/rent-increase-landlords/

saajan_12

Tonyacs said:

Hi all,

I am hoping to find some advice on rent increases by my landlord. I live in a share house with two others. I pay £680 all inclusive of all bills per month. My landlord states she has to increase my rent by £150 per month due to the bank of England interest rate and due to the increasing fuel price crisis. - so how does £830 compare to similar rooms or facilities in the local area? That's more important than the increase %

It is my understanding that rent has to be increases by the retail price index and not the BoE interest rates and the increase can only be a smal % but not sure what it is for certain. - there's no set rule.. where are you getting that from?
Regarding the energy, I appreciate we are in unprecedented times for energy prices but do any of you know if this is correct or is my landlord being fair. - well yes, market levels are driven by changing costs and competition. The cost here is mortgage rates, utilities costs, labour costs for repairs etc while competition is other rentals available you could (threaten to) move to. A LL is unlikely to rent at below their cost, it just wouldn't make sense. 

Your thoughts would be appreciated.

Many thanks

Comments in line.. focus on the competition and if you get better elsewhere then negotiate or move there. There's no set % or index they have to follow.