Landlord Imposes Rent Increase on 12 Month Anniversary

anselld

anselld said:

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.

Latest figure is 6.1%

GDB2222

The RPI figures are published a month in arrears. Is there anything in the rent agreement about how to deal with this, for example use the latest published increase, even though that’s for an earlier month?

propertyrental

GDB2222 said:

The RPI figures are published a month in arrears. Is there anything in the rent agreement about how to deal with this, for example use the latest published increase, even though that’s for an earlier month?

It is usual to use the figure for 2 months prior to the date the rent is to change. That allows time for calculations to be made, and the tenant to be informed giving the tenant a minimum of a full months notice of the new rent.

What date does/did the fixed term end?
Is the LL demanding the new rent from the date the fixed term ends/ended, or some other date?
What date did the LL serve notice of the new rent on the T?

saajan_12

Jay_C said:

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.”

 

propertyrental said:

GDB2222 said:

The RPI figures are published a month in arrears. Is there anything in the rent agreement about how to deal with this, for example use the latest published increase, even though that’s for an earlier month?

It is usual to use the figure for 2 months prior to the date the rent is to change. That allows time for calculations to be made, and the tenant to be informed giving the tenant a minimum of a full months notice of the new rent.

What date does/did the fixed term end?
Is the LL demanding the new rent from the date the fixed term ends/ended, or some other date?
What date did the LL serve notice of the new rent on the T?

Well given the wording from OP, I think its debatable whether the clause fully specifies a binding rent increase.
* On one hand, there is a decently strong argument that a reasonable interpretation of 'based on RPI' from latest published rate, or 2 months before, whichever is in favour of the tenant due to ambiguity, 
* On the other hand, there's uncertainty in which month is used, and the AST mentions what happens if the LL doesn't raise the rent, which arguably suggests its not fully agreed already. 

So worth discussing with the LL, and trying to come to an agreement on the new rent. Then get that agreement in writing, saying that it overrides any prior rent increase clauses. If you can't agree, then OP can decide whether its worth refusing and risking eviction and/or ultimately a judge agreeing wiht the LL on the rent arrears. 

_Penny_Dreadful

Arghhh!  I dislike tenancy agreements that try to link rent increases to RPI as they (like many break clauses) are badly written.  @Jay_C I would go back to the letting agent asking for evidence as to how they arrived at 10% and the landlord 9%. 

GDB2222

propertyrental said:

GDB2222 said:

The RPI figures are published a month in arrears. Is there anything in the rent agreement about how to deal with this, for example use the latest published increase, even though that’s for an earlier month?

It is usual to use the figure for 2 months prior to the date the rent is to change. That allows time for calculations to be made, and the tenant to be informed giving the tenant a minimum of a full months notice of the new rent.

What date does/did the fixed term end?
Is the LL demanding the new rent from the date the fixed term ends/ended, or some other date?
What date did the LL serve notice of the new rent on the T?

I agree that 2 months prior is pretty normal, but I would expect it to be written into the contract. Otherwise, the actual increase for the year in question would be the natural interpretation of the contract. As inflation seems to be falling, that might be better for the op.

Jay_C

Thank you again for all the comments, with inflation falling, I am assuming I want to perhaps push for any proposed rent increase linked RPI to be alongside the tenancy anniversary date (Feb 2024 would be 1 year)

The agent actually came back with a follow up today, maybe because she saw the news last night

I am following up on the email I sent on the 7th, as the landlord is proposing an anniversary increase below current RPI are you able to accept the new rent or will you be looking to contact the tribunal service?


Additionally I wanted to see if anyone thought there would be any validity putting forward a case for rent rebate for the months where we had issues with no heating and the roof as well ? 

propertyrental

When in Feb 24?
OK so he is relying on (october?) RPI, which gives 3 + months notice.

Whatever the validty of the clause, I don't see how he can use (oct?),so why not ask?

* Date of RPI the LLis relying on
* link to the LL's source for the RPI


Don't respond to the specific Qs you've been asked and don't commit yourself to anything at this stage.

And despite what the agent is saying, the Tribunal is not an option. Any applcation to them will be rejected, not ruled on.

saajan_12

To clarify, the AST says increases every 12 months, its only been 8 months? 
If so, then whats the purpose of the LA's email at this stage, and what are they expecting you to do about it? 

I'd just say that 
- you understand the terms of the lease 
- its premature to agree next years increase 2/3 of the way through the lease. 

No need to agree a fixed % now and what you plan to do or not do with challenging it. There's no upside for you. 

Jay_C

propertyrental said:

When in Feb 24?
OK so he is relying on (october?) RPI, which gives 3 + months notice.

Whatever the validty of the clause, I don't see how he can use (oct?),so why not ask?

* Date of RPI the LLis relying on
* link to the LL's source for the RPI


Don't respond to the specific Qs you've been asked and don't commit yourself to anything at this stage.

And despite what the agent is saying, the Tribunal is not an option. Any applcation to them will be rejected, not ruled on.

Thank you for the reply, the anniversary date would be 24th Feb. On that basis should I go back and initially ask for the date of RPI the LL is relying on along with the source rather than seeking it to in line with the 12 month anniversary?