Rent increase on a yearly contract

Landlord Discussion
1

Hi all. New to the UK/ London and interested in some advice. Rented a great apartment last year and the tenancy comes to an an end soon. I talked to the landlord and let him know that I am intending to stay for one more year for sure

He said that I should expect a rent increase. Now by going through the uk gov site j am a bit confused as I read that in a yearly tenancy the will need to let me know 6 months in advance. Is that the case ? Attaching an image.

Can someone clarify and also tell me what is a typical increase in London if there is such a thing. I used to live in NYC and there most apt buildings are rent stabilised meaning the increase is the same for all decided by a council.

Thanks all

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2

That’s for a periodic tenancy with a 12 month period, which is very rare. Badly written Govt advice I’m afraid. Unless you only pay rent once a year, I’m assuming you have a fixed term tenancy as you said it is ending soon. If that’s the case, the landlord can put the rent up once it ends and with usually just a month’s notice. Sorry to bring you bad news.

3

Got it - It’s def badly written. I am surprised there aren’t any lows in the UK to protect tenants or at least have a max percentage of raise allowed given the circumstances each year.

Does this mean if I pay for the full year next year - in order for the landlord to raise the rent again, they will have to let me know 6 months in advance?

4

No, it depends on what’s written in the tenancy agreement about the term too.

The landlord can agree an increase informally with you or use a section 13 notice if there is no rent review clause in the agreement. If he uses a s13 notice, you could challenge it through the First Tier Tribunal if you think the new rent is significantly above the local market rent. They can set a lower rent, but unless it is way above, you would be unlikely to win.

5

So obviously when there is a new AST you have the option of

  1. refusing to sign a new AST and go to a statutory periodic tenancy, and the LL can then raise rents to market rent only (once a year)

  2. Negotiating rent for the new term.

  3. If he wants more than you want to pay then move out.

6

Thanks for your response.

Regarding number one. What is that type of tenancy and where can I find the market rate?

7

If tenant and landlord cannot agree on terms for a new contract it will automatically go into something called statutory periodic tenancy (SPT). There is nothing the LL can do about it.

You should note, however, that the LL can give notice (one month) if he does not want you to be on an SPT. If you’re a good tenant he’d be a fool to evict you for not signing a new contract, but the risk is there.

As for market rent, that is the rent for comparable flats in your area. It’s not easy to determine but is based on achieved rents recently. If you refuse a rent increase a judge will decide in the end. Look here for advice: How to challenge a rent increase - Shelter England