Renters Rights Act vs My tenancy agreement - which will take precedence?

moneysavingnoob_3

Hi all,

My original tenancy contract, from 21 years ago, says that my rent can only be increased by inflation. "..the Landlord shall be entitled to adjust the amount of rent in line with the RPI…."

But the Renters' Rights Act info sheet says "Landlords must instead use the process in section 13 of the Housing Act 1988 for increasing the rent…..Any rent increase must be no higher than the open market rent."

My rent is currently way below market rate. So my question is - can the landlord use the new act to suddenly jump my rent up to a market rate? Or does my contract take precedence?

I'm a bit concerned.

GrumpyDil

According to shelter guidance potentially yes.

Once the Renters' Rights Act is in force, all fixed-term tenancies will become periodic and landlords will not be able to rely on existing rent review clauses or include them in future tenancy agreements.

That said you will have the right to challenge a rent review if one does take place where you feel the rent is excessive. If the tribunal consider ders the increase acceptable based at n market rent but xonsiders it may cause hardship they can delay the increase by two months to give the tenant time to look for other options.

TroubledTarts

Yes the landlord could up the rent to the market rate with a section 13.

However, with a good tenant that pays their rent on time why would they?

We keep rents way below market rate and have been rewarded with some great long term tenants.

GrubbyGirl_2

You must be a brilliant tenant to have been there for 21 years and that's a rare thing. I doubt your landlord would want to lose you so try not to worry too much.

mills112

The renters right bill don't always work for tenants and this is probably one of them. As others have said, the new way to increase rent now is through S13 process rather than the contract. So technically speaking the landlord can increase up to market rates.

You can apply to the tribunal to dispute the increase if you think it is not reasonable and I believe that the tribunal will have the final say and in this case, they may consider that rent increase above what had been agreed in the contract as in line with inflation and as you have been there for 21 years, they may agree that any increase above inflation is not reasonable.

theartfullodger

Nothing to stop you proposing a rent reduction.

I've been a landlord for 26 years.

saajan_12

The RRA takes prescenence, and rent review clauses will become null and void. Unfortunately one of the many ways the RRA may not always help tenants.

moneysavingnoob_3

Great advice, thank you all. Seems logical that the RRA will override this part of my contract. A shame, but there you go. I do gain elsewhere. I will see what happens….