Rent increase by £300!!! What do I do? Is this normal? Please help!!!!

As poster referred to a mortgage then this doesn’t fall under Renters Rights Act.

Service charge under provisions of a long residential lease purchased for a premium is protected under Landlord & Tenant act.

service charge demands must be accompanied by Summary of Rights and Obligations otherwise it is not payable until correctly served.

This summary states that if service charge is not reasonable then an application by the Leaseholder to the First Tier Property Tribunal for a ruling.

The lease is a legally binding contract on the leaseholder aka tenant and who ever named in the lease as landlord.

Read the lease to ensure the landlord is performing its obligations set out in the lease and provided annual audited summaries of the costs which must be those set out in OPs lease
contract.

Do not withhold payment of service charge or Ground rent which is separate.

Then contact Leasehold Advisory Service LEASE) for pro forma letter to be served on the Landlord

In a fast moving forum you have resurrected a zombie thread which asked for advice about a personal situation of a year ago. You could start a thread if you have something you want to discuss and link to a previous thread, if it's relevant.

I wish. I'd have put both of mine up by a couple of hundred each a year or two back. It'd fuck my tenants right up though.

The LL can charge this. The new Renters Bill has caused alarm. But, check with SHELTER that they’re handling it in the right way.

@user68901 It does sound as if some landlords charge below market rent and that can create difficult situations if they can't keep it at that level indefinitely.

A LL should be charging tenants market rate . His/Her mortgage payments are irrelevant. His choice of BTL interest only / capital and interest , level of borrowing is theirs and only their concern. If the BTL mortgage is huge , that is their problem. I have one property with a mortgage and one without. The repayments on the one with the mortgage are my problem, I don't give the tenant a discount on the flat with no mortgage, no LL does that!!

I think crashes, interest rates etc are par for the course. But the legislation that's come and the change on tax treatment isn't predictable. The tax is a very significant issue and it's completely illogical too. No one could predict that if you have to pay mortgage interest of 10,000 this isn't treated as an expense and you can only set off against tax 2000. The usual principles of being taxed on income less expenses don't apply.

Yes, indeed, they're blips - they don't last for that long in the scheme of things. How many houses are worth less 20, 30, 40, 50 years after they were purchased, regardless of any crashes along the way? A lot of grandparents who are privileged enough to be able to do so will invest in property fully expecting their grandchildren, rather than themselves, to reap the benefits.

If people can't or won't accept that and wait that long - understanding the basics that property investment is a long game - maybe they're better finding an alternative investment that is appropriate for their circumstances and requirements.

There's no point in planting carrot seeds and then being surprised or disappointed when you don't get potatoes a few months later.

Sure, if you have the time to ride out the crash, which can be a few years...lots of folk don't and hence why so many people face repossessions during crashes and landlords go bust....
Given time there is no asset class that has not increased in value overall, but property is not easily liquidated and caries a fair amount of risk...

Sure. There have been crashes, but let’s be honest, it always recovered snd escalated again. The crashes were temp.

If you really can't understand that buying a BTL property is a long-term asset, you probably shouldn't try being a landlord in the first place.

@DalzielOrNoDalzielAndDontPascoe You're absolutely right that having a BTL property should be viewed as a long-term asset. The problem is that most people have a tipping point at which they'll sell up, perhaps when the rent no longer covers a certain percentage of the expenses.

This sounds like the situation with the OP's landlord. I hope she gets some good advice from CAB/Shelter and is able to negotiate. It sounds as if their current rent is considered affordable for the area and they're unlikely to find something equivalent if they move.

Houses are not always an appreciating asset, there can, and have been significant housing crashes....not only that but you seem to be ignoring all the ongoing maintenance and replacements required on any property, especially tenanted ones and finally any final uplift in value is then subject to capital gains tax if the landlord sells it.

The government makes much more revenue from rental houses through stamp duty surcharge when they are bought, income tax on all rental profits and capital gains on the sale than most landlords can even dream of!... hence why so many are getting out of the market, squeezing supply which of course results in a tighter market with higher rents...

I also don't know why some people are comparing a house - an appreciating asset that can not only earn a substantial amount of rent each month (even if you put it all towards the mortgage on it) and then still be worth far more than you paid for it when the mortgage I'd paid off.

Moaning that you aren't making a profit month to month, as well as at the end of the mortgage, is kind of like saying that, in a 'normal' job, you're working for absolutely nothing for most of the month, and being utterly ripped off throughout by your employer - whilst conveniently ignoring the whole month's salary that you receive at the end of the month.

If you really can't understand that buying a BTL property is a long-term asset, you probably shouldn't try being a landlord in the first place.

But one is a commodity, the other an asset. A supermarket can only sell a can of baked beans once and either make a profit or a loss. Many landlords are expecting to break even or make a profit every month on rent AND have an asset they can sell for a few hundred thousand £ at the end of it.

@Emanresu52 Unfortunately, the landlord has to plug the mortgage shortfall in the meantime though, £3,600 a year in the OP’s case. It may make financial sense for them to sell instead. It’s shitty, but that’s the reality.

Have you applied for all the benefits you may be entitled to?

People saying LL's shouldn't rent at a loss, well they're not as house prices are increasing so they may not cover mortgage payments but they have a house to sell at the end of the day which the tenants don't. I've rented for ten years and dread the day my LL puts the rent up by a huge amount, we are quite a bit under market rate and they would have every right to match what's out there. Thankfully they know we are good tenants and have never missed a payment but I do stay awake at night with the uncertainty of it all.

So if the price of baked beans went through the roof, do you think supermarkets would take the hit, or would the price increase get passed onto customers???

So many people on here are pretending they don’t understand basic economics

OP with your update given that your household appears to be one pensioner, one person expecting to be living on benefits and one PT cleaner near pension age, do you have to stay in such an expensive and in demand area?
Might be less stressful and long term more secure to move to a cheaper area.
How do you pay now? Income topped up with benefits?

Same here and I am😓 also a "single pringle".

We were renting in SW London until a year ago. Fixed rate 2 year contract - we always paid on time, created no issues and were very good tenants. LL owned 18 properties and lived overseas. Never fixed anything (flat roof leaking badly, dishwasher never fixed). At the end of the contract we were advised that the rent was going up £900 p/m “to cover the mortgage increase”. There wasn’t a mortgage on it of course. LL just decided to try and get more rent which I suppose is his prerogative. Horrible to be on the receiving end of though. Couldn’t pay it so we’re issued a section 21 eviction notice. I’m not sure if you can dispute an increase in rent after a year if the landlord feels he can get more rent from someone else?

I'd love to say it is outrageous just refuse to pay it, but I live in East London (Stratford) and I have heard of several people who have experienced similar increases, even with council property.
The average rent for 2 bedrooms in East London is around £2,000-2,200 currently-so it looks as though they are looking to bring it line with current pricing.

Difficult to say one way or another.

You could find out what landlord expenses are. The Band on your flat will give you an idea of what council tax is for your flat. You can also find out what energy suppliers charge for a year's service for boiler/electricity/plumbing. You can also work out what white goods cost in your area and if they need maintaining and repairing. You can also look at similar rents.

If you search homes for sale or rent and there is one for sale similar to yours, the listing on the estate agent will usually tell you what you can expect to pay if you were buying similar and what the mortgage would be. It will give an idea of value and the difference between the mortgage and your rent which will include all the taxes, maintenance charges, hire of white goods and cost of the common areas and grounds which make up your rent.

Our mortgage went up £550 a month not long ago. We are skint 😏

These do not compare to a home and being ethical is not being a charity.