Rights against rent increase

skray

Hi 

My landlord has proposed a rent increase of 37.5%.

I have been living at the property close to 4.5 years, and there has not been any increase for the first 3.5 years, then about 15% last year, and after 12 months now 37.5%.

I was invited to a meeting with the property agent - justification is there has not been any increase for the first 3.5 years, and the "increase due to mortgage interest inflation and service charges." If I do not agree or not able to make a counter offer that the landlord agrees then a Section 13 notice will be issued, or I may move out giving 1 month notice or the landlord will give me 1 months notice etc.

I am on an "Assured Shorthold Tenancy Agreement" and the contract also says the landlord can request a rent increase every 12 months. "The Term" is 12m and also has an Expiry Date. I can give 1m notice and the landlord can give 2m notice throughout the tenancy.

I was doing some research on rental properties available in my area - there are not a lot of property available for the rent I am paying and the facilities I enjoy so a rent increase request is probably justified. But a 37.5% increase is very much on the higher side, besides the question is if I am able to afford the rent increase.

Could anybody offer by way of guideline what my rights are or if there is a way to contest the rent increase and stay at the property, or I have no option but to move out if the amount of rent increase cannot be agreed upon. (e.g. I can offer 10% - 15% but does not look like will be accepted)

(I was checking the Citizens Advise website "Challenging a rent increase" - seems to say I can challenge at the tribunal but "You shouldn't get a section 13 notice if: your rent increase is already agreed in your tenancy agreement, for example if you have a 'rent review clause' or you're in the fixed term period of your tenancy, so I am not sure if I am eligible)

Thanks in advance

pinkshoes

If your rent is in line with the current rentals on the market, then you can just decline, but be prepared to move.

If you feel your rent is a little low, then propose something more sensible. 

The LL has to give you two months notice, not one month.

propertyrental

Are you on a fixed term contract, or Periodic (rolling)?

Either way, does your (last) contract have a rent review clause?

If yes, please quote it exactly.

Have you read:

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

skray

@propertyrental

Thanks for your response. The details from my contract are:

----

Assured Shorthold Tenancy Agreement (Housing Act 1988 amended by Part III Housing Act 1996)

Term: 12m beginning DD/MM/2023 ("the fixed period")

Rent: <Amount> pcm

Expiry Date: DD/MM/2024

One months notice can be given from rent payment date throughout tenancy. LL can give 2m from rent payment date. Landlord can request rent increase every 12m.

When your tenancy fixed term is due to end you will be required to re-sign contracts for both fixed and periodic tenancies

If after the fixed term the tenancy is coming to an end and the tenant agrees they can continue to live in the property but choose not to ix the term of the tenancy, the tenant shall occupy the property under periodic tenancy, the terms and conditions will continue throughout the term of periodic tenancy.

LL may request request rent increase upon renewal which will be discussed during renewal meeting.

-------

I checked the document you uploaded - the rent increase clause in my contract is not "specific" like it says in the document.

"If the wording of the clause is vague, or makes it unclear/ambiguous as to when or how much the increase will be, the clause is invalid. A tenant cannot be presented with a rent increase that was not expected. A vague 'The landlord will review the rent after 12 months' is not clear enough to be legally meaningful." but also says if referred to the Rent Assessment Committee for periodic tenancy the LL can issue S21 notice if he is unhappy with the ruling.

As such I am not looking for a confrontation - but the proposed rent increase seems so high I am wondering what the LL motive is, and likelihood any tenant will not be able to cope and move out. If I cannot pursuade LL to accept a lower rent (which seems unlikely) I will have to consider moving out as well though I have not started market research.

In these circumstances does the tenant have any legal right if the rent increase is deemed too high, and who decides, or the LL can hike the rent as much as he wishes and if tenant does not agree he has to move out.
(To be clear I can accept the rent increase and if I find any thing cheaper I can give 1m notice and move out, I am not bound to pay the rent for any fixed term)

Thanks

theartfullodger

You have every right to propose a rent decrease - of say 37.5%..

DPT57

Apart from offering less or moving out, your only real option is to challenge the increase at the First Tier Tribunal, but unless the proposed increase would put the rent above the local market rent, you would lose and in theory the FTT could award the landlord a larger increase.

[Deleted User]

Your landlord has likely not increased rent in a while.

What is the rent you are paying and is this within the going rate in the area?

You can challenge it but might have to move out eventually. 

Some landlords have issued s21 due to rent increase etc.

propertyrental

You have not answered the question. Why blank out the relevant dates? (XX/XX)?

propertyrental said:

Are you on a fixed term contract, or Periodic (rolling)?

.......

If you are still in the fixed term, and are considering signing a new fixed term, the rent is negotiable. Whatever you/LL agree.

If periodic, LL cannot rely on the rent clause (which is too vague) but could serve a S13 Notice. Or you could mutually agree a new rent.

• One months notice can be given from rent payment date throughout 
  tenancy. LL can give 2m from rent payment date. Landlord can request 
  rent increase every 12m.

This is one of the wierdest clauses I've ever seen! In effect there is no 'fixed term', the AST is effectively a Contractual Periodic Tenancy which either side can end at any time (subject to notice, S21 etc)

R200

Threatening to go to tribunal is a good negotiation tactic as it’s free for tenants and costs LL

[Deleted User]

R200 said:

Threatening to go to tribunal is a good negotiation tactic as it’s free for tenants and costs LL

It's a tactic that wouldn't work with me as I always point out that the tenant is entitled to go to tribunal, I almost encourage it.

What does it cost the LL - please elaborate?

[Deleted User]

R200 said:

Threatening to go to tribunal is a good negotiation tactic as it’s free for tenants and costs LL

Some landlords will just issue s21.