Massive rent increase

[littleshitebing]

My db has been living in his flat for 6 years. He's never had a rental increase in that time, good tenant always played rent on time etc. Anyway he's had a letter saying they want to bring rent to market value and from June contract renewal it will increase £450 a month!

Are they allowed to increase this amount in one go, thought they could only increase by a certain %??

[Fluffyears]

As far as I know they can charge market rent and that should be refelectr in the new lease and as it's a new lease they can put in any terms they wish with regards to price.

[lemonsandlimes123]

How much does he pay now and what is the going rate in his area?

[EB123]

There is a cap on the % they can raise it by in one go. I think it is 10% (that's off the top of my head though).

[Justanothernameonthepage]

It has to be in line with local average rents and if he's got a yearly tenancy than they need to give him 6 months notice. They can't raise it without his agreement if he's in a fixed term. And he should check his tenancy agreement which should have any rent increase methods explained.

[littleshitebing]

He currently pays 900 and they're raising it too 1350 per month.

[VerySadInside]

He has been insanely lucky not to have a rent increase in 6 years!

[lemonsandlimes123]

And what is the going rate in the area?

[EssentialHummus]

Here's the legal position OP:

www.gov.uk/private-renting/rent-increases

[requestingsunshine]

Wow that's a huge leap! He can dispute it. However if he refuses the landlord could issue him notice to leave. I'd contact shelter for advise and see if they can actually increase it by that much in one go.

[Fluffyears]

The % rules only apply to current tenancies, his tenancy will be starting again with a new lease.

[Whereismumhiding2]

That's a large jump in rent increase. I can't see anything that says landlord has to keep within a % increase if tenancy term is due to end and a new period start, unless it's a pre- 1989 regulated tenancy which means renter has more rights to pay a "fair rent" for property.

This is all I could find, but there are some links in there for agencies that can advise:

www.money.co.uk/guides/what-are-your-rights-if-your-rent-goes-up.htm

[littleshitebing]

Thanks EssentialHummus will send db that link.

His flat is part of an invest portfolio for a large multi national company so he was told originally they had no interest in the flat and just wanted someone in there.

Yes that would put it in line with local rents

[Whereismumhiding2]

Oooh essentialhummous's link in her post is far more useful!

[monkeyfacegrace]

Well he has a choice, either pay the rent or move.

Nobody is holding a gun to his head. If he has only been paying £900 for 6 years then he has already been quids in!

[Whereismumhiding2]

Blimey for £1350/month you could get a 4 bed house with garage & lovely garden down here!! (South coast) Is he renting in a city.. ?

I know that doesn't help, as they are saying it's a fair rent for the area, but... ouch!!!

[littleshitebing]

monkeyfacegrace what is the point of your snarky post, obviously no one is holding a gun to his head etc but it's been his home for 6 years and he's been given a month to find somewhere and to suddenly find a new deposit which he wasn't expecting as 1) usually if it increase its not normally 50% 2) they haven't asked for so much as tenner more. It just seems unfair that's why I was asking

[LakieLady]

I'd recommend trying to negotiate a smaller increase with the landlord. A 50% increase all in one hit is really steep.

If he's always been a good tenant, kept the property in good order, not been a pain in the arse about repairs etc, it'd be worth pointing out to the landlord that while he might get someone to pay a higher rent, he could well end up worse off if they turn out to be problem tenants. If the proposed rent is excessive for comparable properties in the area, he could show him ads to support his case.

've heard this from a few tenants lately. I suspect that a lot of landlords are trying to get more income to compensate themselves for the changes in tax rules re wear and tear and mortgage interest. The relationship between landlords and tenants is horribly unequal imo, and will remain so all the time there's no defence to a S.21 notice.

[LakieLady]

He will have more than a month, Littleshite. It will take them a while to issue him notice, and that will givem 2 months before the tenancy is terminated. They will still have to go to court to get a possession order, which usually gives the tenant another couple of months, then go back to court and ask for a bailiff warrant.

I've never known anyone come close to being evicted in less than 4 months from the date notice is served.

[JoJoSM2]

I can see that's it must come as a massive shock. However, I do think he's been very lucky to pay below market rate for years... If the new amount genuinely is the going rate, then he probably doesn't have much room for negotiation. However, he might be able to get a discount of, say, £50/month if he's been a good tenant.

[Gallavich]

If he has only been paying £900 for 6 years then he has already been quids in!

Hardly. There are quid pro quo benefits to landlords of having long term, reliable tenants. Just one tenant changeover can leave a property empty for several weeks and cost £££ in agents fees to find a new tenant, wiping out the whole annual rent increase in many cases.

[sirfredfredgeorge]

Yes, he has at least 2 1/2 months, assuming an eviction notice hasn't already been served - which can be done, but unlikely as described. That would mean doing nothing, the tenancy would roll over to a periodic tenancy at the 900 quid. The landlord would then either have to put the rent up with a valid notice - which can be sent to a tribunal, or serve notice as per.

Either way, there's quite a lot of time before it happens, there's also plenty to negotiate on, because as things stand the landlord does not know if the person is going to leave at the end of the tenancy (as is their right) or decide to continue as a periodic (as is their right), so they will not even be able to market or do anything until that last day. However with a large multinational they will of course be more able to absorb any void that this would result in so have less need to negotiate than a small holder.

[NoSquirrels]

One of the reasons that we ended up moving from our lovely long-term rental was that the rent had not gone up in 6 years, it was vastly cheaper than market rates by the time we left, and we were conscious that it was a case of borrowed time in many respects. We would have struggled massively to pay market rate, which had probably jumped another £700-800 per month.

We had a great LL, who was very fair with us, but ultimately rental property is a business proposition, and it could have leapt up at any point.

It was not the only reason, but it was certainly a consideration.

It might not feel fair to your DB, but he probably should have been making provision towards saving a deposit in case of this happening. In fact, I think everyone in private rental should try to save a deposit in case of needing to move urgently.

[MatildaTheCat]

He may be able to negotiate staged increases if he has been a long term and good tenant. However, you cannot blame any LL for wanting to achieve the market rate on any investment. Thanks life.

[averythinline]

There isn't a cap on what a private landlord does as far as I know..
he needs to talk to them and see if he can negotiate a staggered increase or if he doesn't want to pay the new amount either wait to be evicted or leave ....
Must have been a massive shock but not uncommon....

[InfiniteSheldon]

The ll may have no choice, if he has mortgages the rules have changed 're tax and he may have to charge more to make it worthwhile. Having a tenant pay that much under market rate simply isn't possible in the new tax regime.