Hi there,
My landlord wants to increase our rent from £1.350 to £1.900 he said because we are good tenants he will be willing to agree £1.750,
We are agree that interest rate has increase tremendously but I still consider £400 in once is quite a lot and not affordable for us.
which one will be the fair increase rent for both sides?
thanks for your advice.
Unless it’s London, 30% increase seems high. I would have agreed to 10%. It all depends on similar properties in your area. Look for average pcm for similar properties in your area and deduct 2%. That would be your market rate.
40% discount you have now seems unrealistic. Looks like LL just trying to pass on his unaffordable mortgage cost to you.
Book some viewings, prepare to move within 2 months and propose a market rate. You don’t have to agree unless the proposed increase is at the market rate.
I would also worry about affordability test at the new rate.
Hi
I am on several landlord/tenant forums and the question of what is a reasonable rent increase comes up quite often since the cost of living crisis. Some small portfolio private LLs did not increase their rents for many years and now because of their increased mortgage costs they have had to pass some of these costs onto their tenants. Hence rent increases of 30%+.
Realistically, a LL cannot charge more than the market rent for the area. If they do, the tenant is likely to leave and they are likely to have a lengthy void period which is counter productive for the LL. For an existing good tenant I would set the rent at 10% below the rest of the market so they know that they won’t be able to move to a similar property for less rent.
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Sounds good to me. We always try to keep the rent attractive, and usually have T stay for years.
Take a look on Rightmove and Openrent for similar properties in the immediate area. If the landlord’s proposed new rent is considerably more than the average local rent then you can challenge it at the First Tier Tribunal.
Fair increase is in line with market value. Looks like your LL took into account that you’ve been good T and makes your rent below market value. That is more than fair. They don’t have to do that.
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