New AST questions post June 1stMake Text Bigger
Firstly, the new tenants are a married couple with two children. The wife has no income. The letting agent has named both husband and wife as tenants on the AST even though the wife will be contributing no rent. The letting agent is advising that this is normal practice. I would have presumed that the husband would be the tenant in this case with the wife named as permitted to stay. Am I being overly cautious here? What is the normal/safe practice when you are aware in advance that only one party can afford the rent?
My second question relates to the clause below which is also in the new AST:
“In clauses 22.214.171.124 and 126.96.36.199 the Rent will increase by the amount stated for the annual increase in the CPI (Consumer Prices Index as published by the Office of National Statistics) as quoted for the month two months prior to the month of the increase. If CPI is less than 2%, the amount of the rent increase will be subject to a minimum of 2%. If CPI is in excess of 5%, the amount of the increase will be subject to a maximum of 5%.”
Here the letting agent is telling be that this cap on rental increases is new legislation post June 1st (but so far they haven’t been able to show me evidence, nor can I find any). Does such legislation exist?
If it does exist is it necessary to add it as a clause to an AST? I’m old enough to remember interest rates of 17% and CPI of 9%, and that was only 20 years ago!
My issue with adding this clause to an AST would be two fold, what would happen if interest rates, and subsequently CPI return to the levels we saw in the ’90 would I be unable to increase rent in line with increased costs? Secondly if legislation were to change what that result in this AST becoming illegal or unenforceable?
Many thanks in advance for any advice you can give.
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