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

Op 1400 does sound cheap for Ilford two bed but I don't know how big or how the flat is . This type of increase has become common , you can counter offer as well. Look online and see what similar property is going for , your landlord can increase the rent once every 12 months , the jump in rents has become big because the mortgages have become high. Also bear in mind even with a legitimate increase they have to give you at least one month notice I think . I would say get your advice but communicate with your landlord too if the increase is genuinely too much for you, so you can reach a compromise.

Sending it that early in the morning is very poor form. However, mortgage rates have gone to shit recently, and landlords can’t offset their mortgage interest against tax anymore. That, plus it sounds like it’s a flat and we’re all at the mercy of service charge homes for which there’s no recourse.

It’s really shit, but basically if they’re charging you 1700 it’s possibly because they are renting this out with a day job, so get whacked by everything above. Say £1100 for the mortgage now, £300 a month service charge, £30 a month ground rent, who knows how much tax but I’m in this situation and making a loss because it’s about £400 a month equivalent because I also work. Not that I’m seeking any sympathy but the worst part is I can’t sell because the value of flats in London and the surrounding area is somehow going down rather than up.

The whole system is broken for renters, and for individual (I.e not massive company) landlords.

@Lele101 My heart breaks for you. Do you have kids?

Mine went up £200pcm this year and the same last year. I’m so worried about the next time as can’t pay anymore. It’s already crucifying me.

There’s some very wrong advice on here, so please get correct advice on your rights. Shelter specialise in advising on legal rights of tenants:

https://england.shelter.org.uk/housing_advice/private_renting/rent_increases.

You have a right to challenge it at the Rent Tribunal, but only if it’s gone above local market rates. If not, they can say the landlord could charge more. So it can backfire on you.

But there are technicalities, which your landlord may not be aware of, which could protect you a bit. So read the Shelter advice and try also Citizens Advice and Generation Rent. For example don’t agree to pay the rent increases (or pay it) for now, as that automatically commits you.

And anyone who’s lucky enough to not be at the mercy of the rental market right now, please consider donating the price of a coffee (or more if you can) to Shelter so they can help more people fight their cases. They’re fantastic.

Actually my mortgage went up by 50% when the deal ended and that was the best deal I could get. That was residential, which should be better than BtL situations.

My mortgage went from £1,000 to £1,600. Should I complain to my bank and refuse to pay? What would you say to me if I put a post on this forum to complain? You'd tell me I was being unreasonable and to accept it or move! Why is rental any different?

LL are a business. They can either increase year on year - which this LL didn't do, or increase when it's absolutely necessary i.e. their costs have gone up beyond absorption.

Most LL in the UK are not professional LL. The courts don't support them against non paying tenants. There are bad LL - hence legislation to crack down - but the majority are not bad. The media/Gvmt continues to demonise all LL which is why so many are selling up.

Expect rents to go up further when all LL are professional LL, Non-Dom LL or LA landlords!

My advice, negotiate first.
If no joy, then pay up or move.

Is it the mortgage or the service charges?
The message says with the mortgage increase plus the fact the service charge has increased by £300. It really could be the service charges are the bulk.

Our old flat service charges doubled from £2500 to £5000 last year ( our old next door neighbour told us), as it includes communal heating and the price had rocketed, plus repairs/ staff. That’s a 1 bed flat in London.

You should be able to check this by going to the office or asking who is is charge of your building. As for flat rental your rent includes the service charges so you don’t pay separate.

It doesn't really matter if they've been cut 10 times in the last year it depends on the change in rate since the landlord last sorted their mortgage and now. £300 seems pretty likely. If they were fixed on 2% 5 years ago it could well be 4.5% now.
I've got friend's whose mortgage has almost doubled and having to sell their house.

It will depend on your contract as others have advised. Contact Shelter, they have a good online chat system. Rent is crazy in England atm, it sounds in line with general rent prices I’m afraid.

Has he given you a Section 13 form and 2 month's notice? If not, it's not valid.

There is also a Property Tribunal that you can apply to who will decide if the increase is fair or not.

What do you do? Too many people staying in lower end jobs, paying astounding rent when you can earn the same yet have a lower C O L elsewhere. @Lele101

Is it line with market value? Would you be able to find something suitable for less? Do some research into what’s available and that will help you know if you’re in a position to bargain. LL won’t want to have any void months or the hassle of a new tenant most likely, but if they could easily get that rent from someone new you’re in a weak position ☹️

Wow, that's so clueless. If buying was a possibility do you not think they'd have done it given what renting is like these days?

That is one massive increase, we are paying £1k per month on a mortgage on a £800k house that will soon be ours. Seriously start looking at options of maybe buying.
There will be an awful lot of knock on increases this year as labour costs rise with minimum wage and increased NI for employers, it will hit every single sector and increase landlords overheads when it comes to maintenance. A 20+ % increase sounds high to me.

That really sucks OP, but £1400 for a 2 bed flat is under market value for that area (if you look at rightmove / zoopla etc prices start from around £1600), and the LL is now raising the rates to be in line with the market, so you will be unlikely to win any appeal if you go down that route.

Yes being a LL is a business, and it's admirable that some on here have operated at a loss. But perhaps the LL cannot afford to operate at a loss?

If you are able to afford a smaller increase, definitely counter offer the LL, they may accept especially if you've been a good tenant.

Could well be this. Friend of mine is a landlord to multiple properties and has recently put hefty increases on all her properties. She doesn’t have mortgages so it’s not even a case of rising costs for her. She says she has to keep her properties in line with the market rate for that area.

I’m not sure that’s strictly true but guess it’s none of my business. I’d like to think if I was a landlord yes for a new tenant when I’m advertising an empty property I’d have it at market rate but I’d be reluctant to undertake large rent increases for a good long standing tenant. She has definitely had people do counter offers and accepted them though so worth a try.

shes had the odd tenant leave and find somewhere cheaper. Then when she’s advertised the property at the new price she is still inundated with applications. It’s supply and demand I guess and round here there aren’t many rental properties available and she will easily have over twenty applicants within a couple of days of advertising.

Such minuscule violins. What a shame for buy to let landlords, so sad.

Does your landlord want you to continue living there or do they want you to find a new place to live and this is the way to kick you out?

All businesses raise their prices when their own costs do increase, supermarkets for ex. Why would LL do differently?

Great post.

I completely agree, it's terrible that landlords just pass on mortgage increases directly to tenants. They should be absorbing some of it themselves - not least because they are the ones actually benefiting from owning the property.

To be fair, none of that means the flat is worth more, or is the tenant's problem. It's a cost of doing business.

Agree with this. Some of my team live in flats and their service charges are going up 10-20% a year and have done for a couple of years now - their flats are unsellable as no one will buy anything with a service charge now (at least not if they’ve got a brain) and so they’re stuck. Mortgage rates are also high and lots of post-covid 5 (when it was insanely low) year deals are coming to an end this year.

LL may well not be being a total fuckwit.

Even if he is, being stroppy will not help. With the changes labour are considering making, and the bonkers costs of some properties, I think being a landlord is a bit of a losers game ATM so some may well be looking for any reason (outside of s.21 which can be messy) to try and get tenants out so they can sell.

Some good advice above re. counter offer. Ultimately though if that's the market rate for the area, he's probably just aligning with that.

Clearly you’re clueless! Whilst interest rates dropped last year, prior to that they have been at the highest level for years. LL was probably on a fixed rate which has now come to the end like many people with mortgages, so has seen a rise in his mortgage payments. If the building has a service charge that has probably risen as service charges are the biggest rip off! Should he increase it that much probably not, but if they’ve not increased it for 16 months OP is probably paying below the market value. Hopefully OP hasn’t got your attitude as that’s the surest way to be issued a section 21 no fault eviction notice!

@Lele101 that is a whack of an increase! I am just away to increase mine too but only by £10 per month and they havent been increased for 3 years. my rentals are 460 for a two bed but i understand that i keep them intentionally low to preserve the long term tenants I already have.

Seek advice from Shelter ASAP.
The thing is mortgages are going up, by crazy amounts in some places, and as long as the landlord follows the correct legalities, then they will have to put rents up to cover costs. It's a no win situation.

Husband has some BTL properties and since mortgage hikes in recent years, has seen a significant decrease in any ‘profit’. He is a conscientious landlord who has only passed on minimal increases to tenants. Some properties he ended up barely making anything, one he was actually making a loss for some time. But he understands it’s a business and accepts the above.

My point being that the £300 increase your LL is asking for, could be to ensure his/her profit is maintained at a certain level, and not to actually pay their mortgage, as such. I would push back and say you can’t afford any increase - that sounds too much of a jump to me…