Hi everyone,
I am a tenant on an AST which lapsed into a periodic tenancy over 2 years ago. My tenancy agreement contains the following clause:
“After the first 12 months of this Agreement has passed, the rent shall be increased with such increase to be in line with the Retail Price Index (RPI) for the 12 months immediately preceding the increase with a minimum increase of 3% and a maximum increase of 10%. Thereafter once the fixed term of the Agreement has expired, if the tenancy rolls over into a periodic Agreement, the rent will continue to be increased on a yearly basis in line with the RPI for the preceding 12 months with a minimum increase of 3% and a maximum increase of 10%.”
My landlord has proposed a monthly rent increase from £875 to £950 (i.e. 8.5%). When I tried to argue that the tenancy agreement allowed for an increase of RPI (i.e. about 3.2%) I was told this didn’t apply.
Can anyone please give me a definitive answer, does it apply or not? They are trying to say that since the tenancy has lapsed into a periodic tenancy all bets are off. This makes absolutely no sense to me.
Thanks for your help
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We don’t know what your initial fixed term was, but let’s say that it was 6 months to give you the benefit of the doubt. That means you’ve had rent at below market value for 2.5 years. An 8.5% rise over that time, albeit in one go instead of in two installments, seems fair to me given that the RPI has risen about 9.7% in that time.
The LL (like all of us) is facing rising costs and these need to be reflected in the rent that you pay, just as all other services you pay for.
However, the AST does state that it needs to be the “previous 12 months” and that would put it at a the minimum of 3% as it’s only risen 2.3% in the last 12 months.
You can argue this if you want, but I think you’ve had a good run of BMV rent so far. The LL has been negligent in not raising the rent in your first year periodic, but I can see why they feel justified in raising it by 8.5% now.
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Would have been helpful to detail that in the first message.
Fighting a S21 won’t do you any good in the long term. Under current circumstances, it will eventually succeed and be extremely stressful for you both. Your current alternative is to refuse to pay the new rent and take him to a rent tribunal and let them agree what the rent should be. You’ve not told us what the typical rent is for your area/property so we can’t judge if that will succeed or not.
If your relationship with the LL has already deteriorated to the point where you’re considering ultimatums then the writing’s probably already on the wall. I’d be looking for a new place.
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His standard of living has nothing to do with the issue at hand.
As I said, according to the contract you quoted, he can only increase it this year by 3%. But me telling you that isn’t going to make him change his mind. I’d write him a letter (keep a copy) stating the clause in the contract and saying that you’re willing to pay the 3% minimum based on the RPI rise in the last 12 months but no more. Say that unless this is acceptable, you’ll refuse to pay any more and will be taking the issue to a rent tribunal.
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The only way that a rent tribunal will come out in your favour is if it is. Therefore, it’s not moot because that’s one way to challenge the rise.
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You have a rent review clause in contract
Is your periodic contractual if so s13 does not apply
Your relationship has soured
You are going to need a reference
If you don’t want an increase move somewhere else otherwise you are facing the inevitable with an eviction under your belt
Over the last few years all of us have increased rents
In our area they have nearly doubled in five years
Regulations and tax rises have resulted in more expenditure
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sure… check your AST and find out whether it says that after the fixed term, you have a contractual periodic tenancy. Does it?
Well, the point I am making is that fighting this under current legislation will put your home at risk because the LL may well issue an S21.
That they have the right to do this when you are challenging the LL’s own breach of contract is, IMO, horrific and is one of the things the RRB sets out to prevent. Your best bet may be to sit tight until the RRB becomes law if you can somehow negotiate a compromise that is sustainable to you in the short term.
You can go to tribunal as this is a statutory not contractual periodic
The LL cannot therefore use the rent review clause because you have a statutory periodic tenancy. You therefore do not have to agree to the rise.
If you take this to a tribunal, legally, this will prevent your rent being raised until the tribunal makes a decision. This may buy you time until the RRB becomes law, at which point the LL will not be able to issue a S21. Risky, but possible.
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they may rule in landlords favour if it’s below market rent
Absolutely… which would make the whole process needlessly stressful and pointless.
Not moot at all.
just think when you own over 11 houses and drive Rolls Royce You can sit back happy
If Section 21 goes to court and your LL is successful you will have to pay his court costs.
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I wonder what the ceo of Tesco drives and how big is holiday home is but they pay for numerous food price hikes in one year
What do the oil tycoons drive or the utility ceos
They increase prices more than once a year but no tenant ever grumbles about that
They don’t even reduce prices when wholesale costs come down
This chap didn’t increase his rent for one year and now he’s being vilified for it
Lessons to be learnt
Tessa
Has advised increase rents yearly
I was accosted by a tenant for the same reason
We increased by 8% ( contract max was no more than 10%) so I got the third degree )
They haven’t cleaned in a year and have only done so after being prompted and shop like it’s running out of fashion
I even helped clear their hoarded rubbish
What is it about increasing rent that turns people’s stomachs
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I drive a Meriva and have a ride on mower!!! I bet that will get him really riled up
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So you get an S21 eviction with a ccj . Try and get a mortgage after that
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“If you seek revenge dig two graves “
Confucius ….
What is wrong with people
Speak first think later
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My understanding is that a rent review clause wouldnt automatically carry over to a statutory periodic tenancy, but in this case the wording is very specific and even if you didnt have a case under housing law, you might undrr contract law. You need a solicitors opinion on that clause. Try Shelter first.
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Shelter’s website says that unless the contract specifically stipulates that a contractual periodic arises after fixed term expires then the rent review clause will not apply.