Hi all, I need help please.I have increase the rent by 8% ( property is in Oxfordshire) as my mortgaged has increased by £300 since January. Tenancy is periodic and my tenant disagree with the new rent which is way below the current market. The tenants are disagreeing with the 8% increase as in our contract is stated, The rent will increase by the amount stated for the annual increase in the index of retail price.
What can I do?
have you served an S13 notice? What is the current standard and what is the proposed rent?
can you give us the exact wording of the contract?
Your rent increase is likely to be invalid. The only thing you can do if you need more rent than your tenancy clause allows is to evict the tenant and start again. Maybe have this discussion with the tenant.
sure, in my contract it stated, the rent will increase by the amount stated for the annual increase in the index of rental prices.
What I have found on .gov Formula rent inflation for 24-25 is increase of 6.7% plus 1.0% and I’m happy to increase the rent by 7.7% instead of 8%.
But the tenants would like to increase the rent by 6.6%
Do you believe legally I am entitled to increase the rent by 7.7% or I’m looking at the wrong Index?
I wouldnt know. I suggest you err on the side of caution if your not sure about the index youve found.
Thank you David, will do
You need the RPI - Retail Price Index as per your contract. This monthly index is available online.
You’ll need to check there are no date specifics in your contract to see which months index you should use, or whether you should increase at a certain date … eg the anniversary of the contract.
For the sake of 1%, if you like the tenants, I think I’d agree to that. If 1% is going to make or break your ability to let this property then your margins are way too fine and you need to look at getting out.
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