Landlord Imposes Rent Increase on 12 Month Anniversary

propertyrental

Less is more. You could just ignore for now and deal with this nearer the time.

Or reply saying your plans are uncertain at present and you'll discuss your intentions at a more appropriate time closer to the end of the fixed term.

GDB2222

propertyrental said:

Less is more. You could just ignore for now and deal with this nearer the time.

Or reply saying your plans are uncertain at present and you'll discuss your intentions at a more appropriate time closer to the end of the fixed term.

If I understand the OP correctly, he has a 3 year fixed term. That's surprisingly long, but that's what he said. There may be break clauses, perhaps.

I suggest the OP takes care to remain very civil.  It's reasonable to put his cards on the table:-

1. A referral to the Tribunal is not in issue, as the contract specifies an RPI increase, and the OP's not contesting that.
2. The contract anniversary is Feb 2024, so the RPI increase for the year to Feb 2024 is the one to use.(The OP must check the whole contract to see whether there's anything in the contract about maybe using the RPI from an earlier date, eg 2 months earlier.)
3. The Feb 2024 RPI increase figure isn't expected to be available until mid-March 2024 at the earliest. He's happy to backdate the increase to Feb 24, once the RPI figure is available. (Or he can offer a payment on account, or whatever they want. It's easy to make this more complicated than it needs to be.)   

Jay_C

GDB2222 said:

propertyrental said:

Less is more. You could just ignore for now and deal with this nearer the time.

Or reply saying your plans are uncertain at present and you'll discuss your intentions at a more appropriate time closer to the end of the fixed term.

If I understand the OP correctly, he has a 3 year fixed term. That's surprisingly long, but that's what he said. There may be break clauses, perhaps.

I suggest the OP takes care to remain very civil.  It's reasonable to put his cards on the table:-

1. A referral to the Tribunal is not in issue, as the contract specifies an RPI increase, and the OP's not contesting that.
2. The contract anniversary is Feb 2024, so the RPI increase for the year to Feb 2024 is the one to use.(The OP must check the whole contract to see whether there's anything in the contract about maybe using the RPI from an earlier date, eg 2 months earlier.)
3. The Feb 2024 RPI increase figure isn't expected to be available until mid-March 2024 at the earliest. He's happy to backdate the increase to Feb 24, once the RPI figure is available. (Or he can offer a payment on account, or whatever they want. It's easy to make this more complicated than it needs to be.)   

Thank you for the reply, I have checked the tenancy and can only find the following clauses in relation to ending tenancy/rent increases. The contract is for 3 years ending in Jan 2026 (unless agreed otherwise)

2.1 If the Tenant vacates the Property during the Term apart from according to any agreed break clause which is included

within the Agreement, the Tenant will remain liable to pay Rent and any other monies payable under this Agreement until the

Term expires; or the Property is re-let with the Landlord’s consent whichever is earlier.

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

Jay_C said:

GDB2222 said:

propertyrental said:

Less is more. You could just ignore for now and deal with this nearer the time.

Or reply saying your plans are uncertain at present and you'll discuss your intentions at a more appropriate time closer to the end of the fixed term.

If I understand the OP correctly, he has a 3 year fixed term. That's surprisingly long, but that's what he said. There may be break clauses, perhaps.

I suggest the OP takes care to remain very civil.  It's reasonable to put his cards on the table:-

1. A referral to the Tribunal is not in issue, as the contract specifies an RPI increase, and the OP's not contesting that.
2. The contract anniversary is Feb 2024, so the RPI increase for the year to Feb 2024 is the one to use.(The OP must check the whole contract to see whether there's anything in the contract about maybe using the RPI from an earlier date, eg 2 months earlier.)
3. The Feb 2024 RPI increase figure isn't expected to be available until mid-March 2024 at the earliest. He's happy to backdate the increase to Feb 24, once the RPI figure is available. (Or he can offer a payment on account, or whatever they want. It's easy to make this more complicated than it needs to be.)   

Thank you for the reply, I have checked the tenancy and can only find the following clauses in relation to ending tenancy/rent increases. The contract is for 3 years ending in Jan 2026 (unless agreed otherwise)

2.1 If the Tenant vacates the Property during the Term apart from according to any agreed break clause which is included

within the Agreement, the Tenant will remain liable to pay Rent and any other monies payable under this Agreement until the

Term expires; or the Property is re-let with the Landlord’s consent whichever is earlier.

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.

2.1 I'm guessing this is a generic TA. Why would it mention a Break Clause if there IS no Break Clause. Are you sure there is no BC?

6.1 As has already been discussed, the specific RPI to be used is ambiguous. The LL cannot just choose which month to use (to his own advantage). For 2 reasons I suggest it should be Feb 24's RPI:

1) the clause refers to "the anniversary of the date on which the Tenancy began". Whilst this seems to be intended to be the start date for the new rent, the lack of reference to an RPI date means Feb 24 is the only month referred to

2) there is a general principle in contract law that where a clause is ambiguous, as here, the court will interpret it to the advantage of the party who did not draw up the contract (ie the tenant here.) And given the direction RPI is moving (reducing), Feb 24 would be more advantageous than Sept 23.

Jay_C

propertyrental said:

Jay_C said:

GDB2222 said:

propertyrental said:

Less is more. You could just ignore for now and deal with this nearer the time.

Or reply saying your plans are uncertain at present and you'll discuss your intentions at a more appropriate time closer to the end of the fixed term.

If I understand the OP correctly, he has a 3 year fixed term. That's surprisingly long, but that's what he said. There may be break clauses, perhaps.

I suggest the OP takes care to remain very civil.  It's reasonable to put his cards on the table:-

1. A referral to the Tribunal is not in issue, as the contract specifies an RPI increase, and the OP's not contesting that.
2. The contract anniversary is Feb 2024, so the RPI increase for the year to Feb 2024 is the one to use.(The OP must check the whole contract to see whether there's anything in the contract about maybe using the RPI from an earlier date, eg 2 months earlier.)
3. The Feb 2024 RPI increase figure isn't expected to be available until mid-March 2024 at the earliest. He's happy to backdate the increase to Feb 24, once the RPI figure is available. (Or he can offer a payment on account, or whatever they want. It's easy to make this more complicated than it needs to be.)   

Thank you for the reply, I have checked the tenancy and can only find the following clauses in relation to ending tenancy/rent increases. The contract is for 3 years ending in Jan 2026 (unless agreed otherwise)

2.1 If the Tenant vacates the Property during the Term apart from according to any agreed break clause which is included

within the Agreement, the Tenant will remain liable to pay Rent and any other monies payable under this Agreement until the

Term expires; or the Property is re-let with the Landlord’s consent whichever is earlier.

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.

2.1 I'm guessing this is a generic TA. Why would it mention a Break Clause if there IS no Break Clause. Are you sure there is no BC?

6.1 As has already been discussed, the specific RPI to be used is ambiguous. The LL cannot just choose which month to use (to his own advantage). For 2 reasons I suggest it should be Feb 24's RPI:

1) the clause refers to "the anniversary of the date on which the Tenancy began". Whilst this seems to be intended to be the start date for the new rent, the lack of reference to an RPI date means Feb 24 is the only month referred to

2) there is a general principle in contract law that where a clause is ambiguous, as here, the court will interpret it to the advantage of the party who did not draw up the contract (ie the tenant here.) And given the direction RPI is moving (reducing), Feb 24 would be more advantageous than Sept 23.

Thank you for the message and your comments above which all make sense. 

Whilst the clause refers to a break clause which is included, I can't see one actually stated within (I have sent this on PM should you get a moment to review).

GDB2222

I don’t see any reason for an argument with the landlord. You simply state how you interpret the contract, and ask them to confirm whether they agree. Just take it one step at a time. 

propertyrental

Thanks for the PM.

I cannot see any Break Clause in the TA.  As I said earlier I would not even reply at this stage- simply continue to pay the original rent. Come Feb, you could email them to say you are happy to pay the new rent based on Feb's RPI once it is published!

I think raising the issue of which RPI to use at this stage will open a boring can of worms and involve you in endless pre and post xmas discussions!

Jay_C

Thank you for the responses, just to confirm if I do not respond to the agent (who has now messaged twice reference the above) can they put forward the rent increase prior to February anniversary date? Should I not reply at all stating that I am happy to pick up discussions in the New Year closer to the 12 month anniversary date?

propertyrental

Jay_C said:

Thank you for the responses, just to confirm if I do not respond to the agent (who has now messaged twice reference the above) can they put forward the rent increase prior to February anniversary date? Should I not reply at all stating that I am happy to pick up discussions in the New Year closer to the 12 month anniversary date?

They can put forward a proposed new fixed term/new rent whenever they want.

The day after the first fixed term starts if they want!

Does not mean you have to agree or respond.

Jay_C

propertyrental said:

Jay_C said:

Thank you for the responses, just to confirm if I do not respond to the agent (who has now messaged twice reference the above) can they put forward the rent increase prior to February anniversary date? Should I not reply at all stating that I am happy to pick up discussions in the New Year closer to the 12 month anniversary date?

They can put forward a proposed new fixed term/new rent whenever they want.

The day after the first fixed term starts if they want!

Does not mean you have to agree or respond.

Thank you for your assistance, I will just leave this and should they send another message (if it is referring to anything further around the topic) I will update the thread