Rental increase over amount in tenancy agreement

Tenant Discussion
1

Landlord and their agent are asking for a 10% increase in rent when our contract is due for renewal in August. However we have the below clause in our tenancy agreement (12 month one):

Rental Increase
The rent will increase on an annual basis using the Retail Price Index % registered 2 months prior to the date that the rent increase is to come into effect. Subject to a minimum of 0% and a maximum of 5%. The Agent will notify the Tenant prior to the date that the rent increase is to come into effect to update their standing order.

Is this allowed? We quoted the above clause to try and limit the increase to 5% but agent is stating that this applies to increases during our fix tenancy agreement. However it’s a 12 month agreement, so if that is the case what is the purpose of the clause in the first place as upon renewal they can raise to whatever rent they desire?

2

The landlord has to follow the tenancy agreement so increase is capped at 5%. However as you are not in fixed term the landlord could issue a section 21 notice to end tenancy if he isn’t happy with rent increase so it’s up to you if you are willing to take that risk.

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3

The key word in your question is “renewed”. If you and the landlord/agent are signing a new tenancy agreement then it can have different terms and a different rent. You dont have to agree to a new tenancy and could ask to stay on under a periodic tenancy, in which case the terms of your existing contract would apply. However, I suspect they wont agree to this and even though they cant legally prevent it happening, I think they will likely serve a s21 notice.

I think you probably have to try to negotiate and consider if this is still the right place for you.

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4

The landlord will be in breach if the attempt to increase the rent is greater than the maximum of 5%

5

Rent can’t be increased during a Fixed term, so without reading the tenancy agreement, it seems that the rent clause is to be taken to continue after the end of the fixed term ( where usually, Tenancy agreements state that the tenancy will continue as Periodic after the fixed term has expired.
If you look at PossesssionFried.uk they give free advice, so you could try them.

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