Rent review letter post Autumn StatementMake Text Bigger
Below is a rent increase letter that will be sent by a Property118 campaign member now that there has been no reversal of Section 24 in the Autumn Statement.
Rent Review :
Since you moved in to XXX I have not reviewed the rent and it has remained at £525 for several years.
As you may be aware, the Westminster Government is changing the way that landlord taxation is calculated and for many landlords this will mean much larger tax bills. The Government is doing this as it wishes to encourage home ownership and reduce the number of rented properties owned by private landlords.
Since the tax change was announced on 8 July 2015, landlords have campaigned against its introduction but despite their best efforts (including an unsuccessful legal challenge) the Government has decided to go ahead with the change which takes effect from 6 April 2017.
The following website explains the implications of the Government tax change for landlords and the knock-on consequences for tenants.
The Government is phasing in the change as they say they wish to give landlords time to adjust. Landlords are already adjusting by evicting tenants in order to sell properties and / or by increasing rents.
I am one of the many landlords across the UK who will be affected by the tax change. I have held off taking action in response to this legislation for 17 months. I had hoped that the new Chancellor would have announced a policy change today as part of his Autumn Statement but he has decided that the change will go ahead. With the tax change now certain to come in to effect in the next few months, I am now forced to take action.
I have reviewed the rent you pay with the rent being charged by other landlords for similar properties in the area. The rents vary from £550 to £640.
I am proposing that your rent be increased to £550 with effect of 29 January 2017. I have drafted an Addendum to your tenancy agreement which is enclosed herewith. Please sign this and return it to me, confirming your acceptance of the rent increase.
Please feel free to contact me if you wish to discuss the matter.
Landlords who are increasing rents are encouraging tenants to write to their MPs to express their concern about the implications of the tax change for tenants in the private rented sector. I would encourage you to write to your MP.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.