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
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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My landlord has increased the rent every year. When RPI was over 10% he increased my rent by 10%, citing the rent review clause in my tenancy agreement. Now that RPI is only 3% and the clause doesn’t further his interests he wants to argue that it doesn’t apply. I couldn’t care less about S21 eviction, if it happens I will fight it every step of the way and make it as hard as possible for my landlord to evict me.
I am looking at buying a property to live in as soon as possible, so I’m happy to waste his time and money.
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.
My landlord owns over 10 houses and drives a 4.5 litre V8 Porsche Cayenne. I don’t care about his cost of living crisis. He can sell a house or chop in his Porsche for a normal car. The question I’m asking is does he have any legal basis to increase my rent by £900 a year?
I believe that it’s a moot point what the typical rent in my area is. If you read my first post, my tenancy agreement contains a rent review clause. All I want to know is whether or not it applies.
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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For him to increase the rent I believe he needs to issue us with a Section 13 (Form 4).
Can anyone who knows about this stuff give me some guidance please?
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.
The point I am making is for a rent increase a section 13 notice (form 4) must be issued. Such a form cannot be used where the tenancy agreement contains a rent review clause. It says as much on the form itself under the guidance section (9).
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
sure… check your AST and find out whether it says that after the fixed term, you have a contractual periodic tenancy. Does it?
it says “The length of the letting agreed in this Agreement including any extension or continuation or any statutory periodic tenancy arising after expiry of the original Term.”
then there is the aforementioned rent review 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%.”
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.