Section 13 notice, but it's all a bit crazy

GDB2222

I'm asking for advice for a friend.

Tenancy started November 2019. One year fixed term, and now on a contractual periodic tenancy.

Rent was £1240 per month, and it has remained unchanged since the start.

The LL has served a S13 notice (Form 4) proposing an increase to £1550 per month. This looks slightly high. Another flat in the block  (in better condition) has just been agreed at £1500 per month.

So, what should my friend do?  

There's a twist to this, though: The tenancy agreement includes a section on rent increases that specifies that the rent can increase by the RPI. This means that the S13 form is invalid. However, I have calculated the RPI increase, and that would take the rent to £1600, ie more than the LL is proposing.  

GDB2222

I'm not sure how relevant it is to the above, but I had a look through the documents, and a couple of points sprang out:

1. The EICR was in date at the start of the tenancy, but it is now well past its expiry date.

2. The How To Rent Guide issued at the start of the tenancy was the 2016 edition, which was several editions out of date. The correct edition was dated August 2019.

theartfullodger

If tenancy covers rent increases then s13 can't be used.  Pretty sure if you look up section 13 of Thatcher's 1988 Housing Act it will say so.  Evidence that landlord is ignorant.

Suggest you wait until tribunal involved then point this out to landlord (thus buying time).

Expect an s21 but check with Shelter's website on what makes s21 invalid.

Artful, landlord since 2000.

Grumpy_chap

Does the friend like and wish to stay in the property?
Does the LL generally do the right thing in terms of responding to any issues that need to be addressed?
Does the friend accept that some movement in the rent is appropriate?

If the above three all get a "yes", then I would suggest that going to a rent tribunal to have the S13 determined as invalid might serve to get the LL's back up and sour relationships resulting in the friend leaving the property sooner rather than later.

Once the invalid S13 is confirmed, the LL might revert to the rent increase clause in the contract which the OP has calculated would be a higher figure anyway.

A more pragmatic option for the friend might be to seek to reach an agreed rent increase.

• Currently £1,240 (since 2019)
• Proposed by LL £1,550
• Market rent around £1,500

Maybe the friend could respond back to the LL that they are willing to discuss a rent adjustment but the proposed amount is more than the current market rent for similar properties.  Then counter-offer with, say £1,400.  The friend could try to buy some delay, for example "I won't be able to afford that change until April, when I will have my annual pay review at work."
If the friend wants to stay and the LL wants the friend to stay at the property, that type of approach might be more amenable to maintaining a positive ongoing relationship.

GDB2222

Grumpy_chap said:

Does the friend like and wish to stay in the property?
Does the LL generally do the right thing in terms of responding to any issues that need to be addressed?
Does the friend accept that some movement in the rent is appropriate?

If the above three all get a "yes", then I would suggest that going to a rent tribunal to have the S13 determined as invalid might serve to get the LL's back up and sour relationships resulting in the friend leaving the property sooner rather than later.

Once the invalid S13 is confirmed, the LL might revert to the rent increase clause in the contract which the OP has calculated would be a higher figure anyway.

A more pragmatic option for the friend might be to seek to reach an agreed rent increase.

• Currently £1,240 (since 2019)
• Proposed by LL £1,550
• Market rent around £1,500

Maybe the friend could respond back to the LL that they are willing to discuss a rent adjustment but the proposed amount is more than the current market rent for similar properties.  Then counter-offer with, say £1,400.  The friend could try to buy some delay, for example "I won't be able to afford that change until April, when I will have my annual pay review at work."
If the friend wants to stay and the LL wants the friend to stay at the property, that type of approach might be more amenable to maintaining a positive ongoing relationship.

They are happy to move, if necessary. The LL has not been great, but there are no huge issues. And, yes, they realise that rents have gone up. 

They already offered £1400, but that was brushed aside.

Their current thinking is to go to the Tribunal and not mention that the application is invalid. They are happy for the tribunal to set a market rent. It’s also possible that, faced with a tribunal hearing, the LL will be a bit more flexible in their demands, and an amicable compromise can be reached. 

propertyrental

If they intend to try to avoid the rent increase, why go to tribunal? Just continue paying the old rent.

The S13 is invalid, so if/when the LL starts talking about rent arrears, T just points out the S13 was invalid so was ignored.

LL will then either try to enforce the S13 renty (and lose), fall back on the RPI clause, or serve a S21. Very similar outcome to going to tribunal but without the faff.

macman

Serving an S21 will fail, as providing the wrong edition of 'How to Rent' will invalidate it.

MobileSaver

macman said:

Serving an S21 will fail, as providing the wrong edition of 'How to Rent' will invalidate it.

Which in truth is a pretty petty reason for the S21 to fail. 

The irony of course is that it's stuff like this causing landlords to sell up which is one of the reasons rents are going through the roof and rentals are getting harder and harder to find...

theartfullodger

MobileSaver said:

macman said:

Serving an S21 will fail, as providing the wrong edition of 'How to Rent' will invalidate it.

Which in truth is a pretty petty reason for the S21 to fail. 

The irony of course is that it's stuff like this causing landlords to sell up which is one of the reasons rents are going through the roof and rentals are getting harder and harder to find...

If landlords can't be a****d to comply with the law they have nobody to blame but themselves.

MobileSaver

theartfullodger said:

MobileSaver said:

macman said:

Serving an S21 will fail, as providing the wrong edition of 'How to Rent' will invalidate it.

Which in truth is a pretty petty reason for the S21 to fail. 

The irony of course is that it's stuff like this causing landlords to sell up which is one of the reasons rents are going through the roof and rentals are getting harder and harder to find...

If landlords can't be a****d to comply with the law they have nobody to blame but themselves.

Do you think all motorists who drive at 31mph in a 30mph limit should also be penalised by the authorities or should rigidly complying with the law without any latitude for minor transgressions only apply to landlords?

Grumpy_chap

GDB2222 said:

Their current thinking is to go to the Tribunal and not mention that the application is invalid. They are happy for the tribunal to set a market rent. It’s also possible that, faced with a tribunal hearing, the LL will be a bit more flexible in their demands, and an amicable compromise can be reached. 

That all sounds rather a lot of effort given the LL has stated a rent increase to £1,550 and the T thinks the market rent is £1,500.  Those figures are so close, it will be hard for the tribunal to put a fag paper between them and the LL will be able to provide every bit of evidence to justify their price as the T can to fight it down.  
Other than delaying, what does the T hope to gain by that?
Plus, it will sour relationships.