recently widowed mum been given 37% rent increase

RCCREATIVE

Hello, 

My parents were under the mortgage scheme where they went to a charity to sell their house to a landlord and then continue to rent the house of them,  this had been going on for over ten years and they paid diligently on time with no arrears.  

Then they were contacted by a lettings agency which had taken over the house as the original landlord had gone bankrupt and the receivers had instructed this lettings agency to take on the property.  

The house they live in is on a housing estate where the majority of housing stock has become HOMO.  The house was inspected and safety repairs had to be carried out as the original landlord had not done so.  This included decorating, electrics and boiler certification.   

The lettings agency were aware that both my parents were elderly and terminal.  Sadly four weeks ago my father succumbed to his cancer,  last week the lettings agency has told my elderly mother that the rent would be rising by £200 a month.  She has a serious terminal condition and has so far refused this new figure,  my sister rang the agency this morning whom said they actually wanted an extra £400 a month and out of kindness reduced it to £200.   They fully well know that dads pension, has gone, and she has no means to pay the extra money.  

I have told her to continue paying the existing rent, and not a penny more, and my sister and I have said that mum needs time to think about it, but the letting agents are being pushy about it.   The rent increase is effectively 37% extra a month.  

I have my suspicions that my mum and her disabled daughter are being forced to move out of the property via extortionate rent increase, so the receivers can make a fast buck on the house.  

Shelter not answering the phone,  CAB not answering the phone,  Council have been made aware and my sister is putting together a housing application.  Also to add mum has lived in this house for over 48 years, she has a serious life threatening condition,  with two aortic aneurysms and has been in and out of hospital for treatment this year, and Dad died in the house, and with all the stress of this we have even had chance for a funeral, in fact we had a non attended cremation of dad.   

Has anyone got any advice to prevent this harassment of my dear mum? 

Gavin83

What were the terms of any contract they signed? Did it allow for rent increases? Is the extra requested in line with market rents? If they were living there for over 10 years with presumably no rent increases in this time then the requested amount might not be unreasonable.

Robin9

Have you/your sister applied for the 25% single person Council Tax relief. ?

pinkteapot

Robin9 said:

Have you/your sister applied for the 25% single person Council Tax relief. ?

OP mentioned that a daughter lives with the mum... 

FreeBear

pinkteapot said:

Robin9 said:

Have you/your sister applied for the 25% single person Council Tax relief. ?

OP mentioned that a daughter lives with the mum... 

Presumably both are on benefits - State pension for Mum, DLA/PIP (or UC equiv) for the daughter. That would mean a very much reduced CT bill.

ProDave

A few random observations:

They sold the property to an investment company and then continued to rent it.  What happened to the pot of money they got from the sale?

The last landlord went bankrupt, probably because he was not charging enough rent to cover his costs, no wonder the rent has gone up.

Has your mother applied for all the benefits she can like pension credit?

km1500

if it were me I would check that the rent they are asking is approximately market rent ie look on rightmove for similar houses in your area and see what they are letting for

you will be surprised by the way how much rents have gone up in the last couple of years

"I have told her to continue paying the existing rent, and not a penny more"

This could well lead to her being evicted

DullGreyGuy

RCCREATIVE said:

I have my suspicions that my mum and her disabled daughter are being forced to move out of the property via extortionate rent increase, so the receivers can make a fast buck on the house.  

Receivers have a legal obligation to maximise the value achieved for the bankrupts assets to ensure employees get paid, HMRC gets its tax due etc. There is nothing in it for the receiver other than possibly losing their license if it's shown they aren't doing their job properly. 

anselld

Have they served formal notice of rent increase (section 13)?  If so then it can still be challenged but this would need to be done formally by applying for a determination by the First Tier Tribunal.
  If there is no Section 13 then there is a good chance that the proposed increase can be ignored at least until the agents gets the paperwork together.
  How does the rent sit compared to market value?  It may be counterproductive not to cooperate if the proposed rent is still below market value.  Unfortunately the tribunal will determine a fair rent vs market value and health issues will not come into it.

propertyrental

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

Flugelhorn

this is very difficult for them - were they in debt when they sold the house? or is there some money left from the sale? 
rents have gone up hugely - you may well find that the original contract allowed for increases at the level of the CPI or similar.

Good that sister is putting together a housing application with the council - keep on trying to contact Shelter / CAB. Is there anyone in the family who can take mum in if she can no longer afford the rent?