Landlords raise rents to cope with rising costs, survey shows
2 years ago | 4 comments
Rent increase according to inflation?
9:10 AM, 15th November 2023, 2 years ago
40
Hi, I have asked my tenant for a rent increase from £800 to £1100. But she is blaming now that there is a clause in the tenancy agreement which says that the rent will be reviewed annually and be increased according to inflation.
So this should only be £855 as the inflation rate is now 6.8% Is there anything I can do, please?
Thanks,
Tuly
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Member Since March 2023 - Comments: 15
11:57 PM, 15th November 2023, About 2 years ago
The next question is that even increasing the rent according to inflation how do you work this out ?
If the rent is now £800 what is the max I can increase the rent to ?
And is it the CPI rate ?
Any advice would be appreciated.
Thanks
Member Since April 2017 - Comments: 23
7:27 AM, 16th November 2023, About 2 years ago
That’s a high increase but let the ast roll into statutory periodic and use a section 13 notice as the rent in rease clause dies at the end of a fixed term. Check first the contract to make sure your agreement does not create contractual rather than statutory periodic. The tenant will have the right to appeal through the first tier tribunal within the one month notice period but if it’s a fair increase you should stand by your request. Goolamy Vs London district properties 2009 case covering this
Member Since March 2023 - Comments: 15
7:30 AM, 16th November 2023, About 2 years ago
Reply to the comment left by The Barefoot Landlord at 16/11/2023 – 07:27
Thanks.
Are you sure that the rent increase clause dies at the end of a fixed term. ?
Member Since January 2020 - Comments: 559
9:33 AM, 16th November 2023, About 2 years ago
Reply to the comment left by Tuly at 15/11/2023 – 23:57
Hi Tuly
It sounds like you need to get some professional advice if you are to move this forward. This forum can only provide generic advice based on what you have said. A professional adviser will read the whole tenancy, and any associated documents/memoranda that there may be, and provide a qualfied opinion.
Until someone has read the documents, “advice” is merely guesswork.
It is possible that you have a poorly worded tenancy agreement, or perhaps it’s okay but you need advice on implementation.
Your best bet is a chartered surveyor with lettings/management experience. Not sure if I can tout for business on here, but it’s the sort of work my firm does!
Member Since September 2023 - Comments: 173
4:44 PM, 16th November 2023, About 2 years ago
Reply to the comment left by Tuly at 15/11/2023 – 23:57
The inflationary increase is based on the most recent 12 months of available data. Inflation is usually reported a couple of weeks late (Octobers figures have just been produced).
I don’t agree with Barefoot Landlord. See link below.
I’d compromise by offering a new AST for 3 years with the rent rising by £100 + inflation each year. Tenants have a choice to accept the AST or find a new home.
Member Since May 2023 - Comments: 206
7:40 AM, 18th November 2023, About 2 years ago
37.5% I don’t think any LL would do this not fair on the tenant
Member Since August 2016 - Comments: 508
4:19 PM, 18th November 2023, About 2 years ago
Oh, dear, really!
Member Since April 2017 - Comments: 23
1:05 AM, 21st November 2023, About 2 years ago
Reply to the comment left by Tuly at 16/11/2023 – 07:30
Yes, even shelter agree
Member Since January 2022 - Comments: 267
3:22 AM, 21st November 2023, About 2 years ago
Reply to the comment left by Tuly at 15/11/2023 – 12:00
I am very confused by your reference to the annual rent being £1,300! For 3 bed properties in this street.
I think you need to get some professional assistance as you really seem to be struggling with numbers. And possibly the responsibilities of being a landlord
Member Since March 2023 - Comments: 15
3:41 AM, 21st November 2023, About 2 years ago
Reply to the comment left by JeggNegg at 21/11/2023 – 03:22
£1300 pcm