unlawful rental increase in affordable housing

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monstermash2010
monstermash2010 Posts: 1 Newbie
edited 12 March 2017 at 11:45AM in Redundancy & redundancy planning
I really hope you can help...

We are living in a rental property called a key worker property for people working as civil servants. We have had a notification that the rent has increased from £720 to £840 from the 1st April. This is a rental increase of 16.6%.

The citizens advice bureau website states that affordable rent can be increased once a year. The maximum amount that can be charged is the retail price index which is 2.6% plus 0.5%, thats a maximum of 3.1%, yet we are being forced to pay 16.6%. I believe this to be unlawful. This has pushed the rent up so much that we could be made homeless. Is there any recourse that we can take?

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  • Mr_Singleton
    Mr_Singleton Posts: 1,891 Forumite
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    Go back and speak to citizens advise?
  • lincroft1710
    lincroft1710 Posts: 17,646 Forumite
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    Whom are you renting the property from?

    Was there a special "low rent" introductory scheme for the first year or two?
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • TBagpuss
    TBagpuss Posts: 11,204 Forumite
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    Have you double checked your tenancy agreement? As lincroft says, it's possible that there was a special introdcutory rate in wich case the increase may well be lawful (as any increase would be on the full amount not thediscounted rate, and part of the increase would be the return to the full rate, not a rent increase)

    I would also check waht the specifc rule is which the CAB is referenceing and whather it actually applies to your home. It's possible that your home falls outside the scheme.

    Shelter, rather than the CAB, may be a good place to start as they do have more specilist knowledge.

    If you are sure that the ruile oes apply to yor home, I would suggest that you wrtite to your ladlord and querey it. Bear in mind that you may be mistaken, so keep the letter polite. e.g.

    "We belive that [state the specifc rule / statute / statutory instrument] applies to our tenancy and therefore that any rent increase is limited to a maximum of 3.1% (RPI of 2.6% + 0.5%) which would be £xx.

    In the circumstnaces, it does not appear that your propsoed increase of £xx, which is 16.6% is permissable.

    In any event, as these homes are intended as affordable properties forkey workers we feel that so large an increase is inappropriate as it means that the property is no longer an afordable property, as the new rent is equal tro or higher than market rates in the area" [obviously only say this if it is true!]
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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