Landlord Imposes Rent Increase on 12 Month Anniversary

Jay_C

Hi all

I am in a fixed 3 year term tenancy which has the following clause and explanation from the agent

“6. Rent Increase 6.1 The Landlord can increase the Rent every twelve months on the anniversary of the date on which the Tenancy began (“the Rent Increase Date”). The increase is to be calculated according to the rise in the Retail Prices Index from the start of the Tenancy or the anniversary date whichever is the later. To avoid doubt if the Landlord does not increase the rent in any year this will not affect the Landlord’s rights to increase the Rent in subsequent years.”

 

It is usual practice for rent to increase on an annual basis and the current RPI is running at 10% and the landlords proposal is to increase by 9% however if you feel the proposed increase to be unreasonable you do have recourse to First Tier Tribunal under the Fair Rents Act 1977.

I am full aware how rent increases work given I own properties myself however wanted to sense check it here based on the following whether it is worth going back with a response

- When we moved in there have been constant problems with the hot water and heating alongside a leak in the ceiling (which was there when we moved in)
The heating took 4 months to resolve
The roof took 9 months

We have never sought any rent reduction, actually never thought the LL would consider a rent increase given the issues and challenges faced.

I believe any appeal at tribunal can only consider similar comparables as well as RPI changes from the start of the tenancy to the anniversary date, if this is the case can anyone confirm the most reliable source to confirm RPI vs what is stated above?

Finally, if there is no way to agree on a suitable rent sum, we wanted to look at requesting to come out our fixed term and even agree to leave after a year. If that would be possible does anyone know if the agency can charge us for any re-let fees that the landlord incurrs?

propertyrental

You can negotiate anything you want- provided the LL agrees.

I'm not convinced the agent is correct. Where the contract specifies rent increases, with a clear formula, I don't think the Tribunal gets involved unless yu have a Regulated Tenancy. Do you? When did your tenancy start?

https://england.shelter.org.uk/housing_advice/downloads_and_tools/tenancy_checker

Repairing issues (heating, roof etc) are separate, though IF the Tribunal assessing the rent hey will take into account the current condition. Does the heating now work? Roof leek?

anselld

The latest RPI figures show an annual increase of 8.9% so 10% is a lie for starters.

theartfullodger

Landlord can't "impose" an increase, only court/tribunal can do that.

HOW has he informed you of increase?  If using an S13 notice appeal it.

Negotiate on ending tenancy, but it's negotiation :- you can't force him to agree.

You could just leave and gamble he won't sue for the rent....

Robbo66

theartfullodger said:

Landlord can't "impose" an increase, only court/tribunal can do that.

HOW has he informed you of increase?  If using an S13 notice appeal it.

Negotiate on ending tenancy, but it's negotiation :- you can't force him to agree.

You could just leave and gamble he won't sue for the rent....

Given there is a clause in the tenancy agreement for rent increases a Sec 13 is not required. 

theartfullodger

Robbo66 said:

theartfullodger said:

Landlord can't "impose" an increase, only court/tribunal can do that.

HOW has he informed you of increase?  If using an S13 notice appeal it.

Negotiate on ending tenancy, but it's negotiation :- you can't force him to agree.

You could just leave and gamble he won't sue for the rent....

Given there is a clause in the tenancy agreement for rent increases a Sec 13 is not required. 

Suspect only a court could decide this  (exact wording of tenancy agreement, dates etc, service....

Jay_C

anselld said:

The latest RPI figures show an annual increase of 8.9% so 10% is a lie for starters.

Thank you what is the most accurate resource to use to check this

Jay_C

Thank you for all the comments

- Heating and roof issue are now rectified albeit 4 and 9 months after we moved in! I actually didnt live in the property for a stint of a couple of weeks earlier in the year as it was too cold and couldn't risk it with a baby

-I believe s13 is not needed as the clause is inserted in the AST which commenced Feb 2023 (can post this if that would be useful to see)

In regards to the above, would it be best to go back and disagree with the rent increase and try negotiate on the grounds stated above? 

I have checked and it seems regarding the heating, there are no TRVs on radiator in one of the bedrooms, not sure what the rules are with this but I would have thought at least each room should have one leaving one in the hallway without?

anselld

Jay_C said:

anselld said:

The latest RPI figures show an annual increase of 8.9% so 10% is a lie for starters.

Thank you what is the most accurate resource to use to check this

Office for National Statistics ...

https://www.ons.gov.uk/economy/inflationandpriceindices

... and it will probably be lower tomorrow (the 15th) when the latest data is published for year to October.

YBR

Jay_C said:

I have checked and it seems regarding the heating, there are no TRVs on radiator in one of the bedrooms, not sure what the rules are with this but I would have thought at least each room should have one leaving one in the hallway without?

There needs to be at least one radiator that has no TRV. It's normal for that to be (include) the hallway, but not essential.

propertyrental

theartfullodger said:

Landlord can't "impose" an increase, only court/tribunal can do that.

HOW has he informed you of increase?  If using an S13 notice appeal it.

The clause in the tenancy agreement means that

* a S13 notice is not required (that's for periodic tenancies with no other mechanism for rent increase)
* assuming (yes, check) the rent increase is validly imposed (in line with the clause and proper timescales etc), then yes it s binding
* assuming it's binding (see above) then failure to pay results in rent arrears
* rent areas can result in a court enforcing payment (and/or eviction) although
* of course if the LL went to court for the arrears the tenant could defend (eg by saying insufficient tie was provided for the new rent introduction, or the RPI was wrongly calculated.
* the court would then rule on the validity of the increase.