Sudden huge rent increase

[livyaz]

Hi, we have rented out home for almost 2 years now, all fine and very average for area we are in (far north).
Yesterday I got a text out of the blue from the house owner, saying that he was fed up with the letting agents fees and was terminating the contract he has with them.
He also said that he plans to increase the rent from £900 pcm to £1250pcm as "everything is going up in cost"
What on earth do we do??
We have never had an issue with anything, had a couple of leaks over the last 2 years, and a valve on a radiator replaced.
During house inspections the letting agent commented that it was the best kept rented property they had seen, I can't understand how such a hike can be justified, any advice how to respond?

There are two avenues which you can pursue

1. You can look at similar houses in the area and if you discover that the proposed increase in your rent is not in keeping with the area you can ‘challenge ‘ the increase with the hope that he would reconsider or
2. Start looking for another house and hope that Karma bites him in the arse. A 40% hike in rent is just cruel

"Unfortunately we're not able to accept a 40% rent increase, we can offer £xxx amount or you can start the eviction process"

@Aworldofmyown

I suspect he wants you out in order to sell. So sorry, renting in this country is disgusting.

That is what I think

Does feel cruel!
Other properties are coming in around what we are paying now, so I do think that this is greed.
The thought of having to move just fills me with dread, but I can't justify paying that amount to stay in this house, as much as I love my home.

I wouldn't challenge it. I would move. 39% increase? He's already proved he is going to be a shit landlord.

I would keep my cards very close to my chest and not say anything. Find somewhere else and give notice.

What does your contract say about increases and notice?

No one wants to loose money and everything is going up. Not that is acceptable but in some cities in the USA rent increases is happening too. My friend went from £1800 to £3000. The world is facing huge challenges post pandemic and going zero fuel is very costly. I saw a huge disadvantage with globalisation and here we are. We are subject to imports from China. Read about the prices of shipping. Merkel gas deal with Russia.

Try to negotiate with the landlord about the increase. Good luck and keep in mind that moving also costs so do not rush to anything until you have a chance to check everything.

england.shelter.org.uk/housing_advice/eviction/illegal_eviction_and_harassment_what_to_expect_from_the_police

Sorry wrong thread!

This one! england.shelter.org.uk/professional_resources/legal/costs_of_renting/rents_and_rent_increases/rents_and_rent_increases_for_assured_and_assured_shorthold_tenancies#title-2

I'd be telling him to fuck off and moving, yes rent prices are crazy but a 40% increase is a bitter pill to swallow.

Push back, and tell him that your paying the norm in the area now and start looking for a new place. If it is above the price in the area he’ll struggle getting that money anyway. If he’s going to behave like this then you may find it difficult dealing with him long term if you stay. Might be better to move.

Just to add, one of my friends had something similar. Had only lived in the property just under a year and was given notice on Christmas Eve.......

If there is the very slightest possibility you could buy then do that even if it is a small place in a not so great area. You will have so much security. Failing that look at places offered by housing associations and/or not-for-profit organisations. Some private landlords are the spawn of the devil I'm afraid.

The Landlord needs to serve a Section 13 Notice to increase the rent. He needs to give you a full rental period of notice before the new rent can take effect, ie if contractually you pay the rent on the first of the month and he serves the Notice today, the new rent won't take effect until the 1st April.

The new rent needs to be in line with market rent, so do your homework. If you disagree with the new rent then you can challenge it and a Rent Assessment Committee will decide the new rent. They tend to favour tenants, so if you think you're right it's worth challenging.

@livyaz

Does feel cruel! Other properties are coming in around what we are paying now, so I do think that this is greed. The thought of having to move just fills me with dread, but I can't justify paying that amount to stay in this house, as much as I love my home.

If you can find somewhere for around the same money it will only cost you moving fees.

If you stay and suck up the increase it's going to cost you £4,200 extra this year.

For someone on minimum wage, that's an additional 472 hours of work over the year or 9 hours a week or almost 2 hours a day. Just to put it in perspective...... Alongside all the extra money you need to find for food, energy and council tax price rises.

Unless he serves you with the proper notice do not pay the new amount.

Challenge it. He will kick himself that he has disposed of his agent as he will need their help with this I expect. Especially if he goes down the route of trying to evict you.

Just a thought.

If he is termination the contract with the letting agent, does that mean he needs to return your deposit (I’m assuming the letting agent holds the deposit) and would you need a new AST?

If so, the terms of this contract (apart from notice period) won’t mean anything surely?

@livyaz

Does feel cruel! Other properties are coming in around what we are paying now, so I do think that this is greed. The thought of having to move just fills me with dread, but I can't justify paying that amount to stay in this house, as much as I love my home.

Okay if they're going for the same price your paying NOW it's greed.

I would reply "I have looked around the local rental market and they are going for £900 same number of bedrooms and bathrooms, I can't justify a 40 % increase of rent. I could pay £xxxx but that's my final offer otherwise I will have to move." Or something on those lines.

@Singlebutmarried

Just a thought.

If he is termination the contract with the letting agent, does that mean he needs to return your deposit (I’m assuming the letting agent holds the deposit) and would you need a new AST?

If so, the terms of this contract (apart from notice period) won’t mean anything surely?

Yes he will as the deposit will be under the agency. Not the landlord.

Yes I would assume that he would need to issue a new contract to us, and the deposit was paid to the Lettings agent too.
We had a leak and he said that the workmen they were sending were too expensive, so he was sending his own workman, this was fine and we accepted with no problem.
He has also said that he disagrees with their costs for electrical survey, and this is why he is terminating the agreement with them?
I don't think that he has thought this through at all to be honest, not that it's making it any easier for us!
All advice and comments gratefully received Thankyou all very much
So unfair this situation

Oh OP, this sounds so stressful

Move. He’s shown he’s an idiot.
This is the big thing with rent increases - they are very quickly swallowed if the property is empty. And good landlords know that.

Let’s say an increase of £200 a month that’s £2400/year. Lose 6 weeks rent - plus have to pay council taxes and any energy costs for that period and your “gain” has been lost. And now you have an unknown tenant - not one who has proved that they oay on time etc.

I would respond to the text with "Sorry but that rent increase is unacceptable to us. It is not inline with similar properties in the area either."

I would then also contact your agent and let them know exactly what he has said. I wonder if he has told the agent what he wants to do with the rent and they have told him that he can't do that.

Depending on how easy it is for you to move to a similar priced property and not disrupt things like work and schooling would determine my next move.

If moving quickly is possible I'd tell him you are not agreeing to the rent and will move on. You may be able to negotiate a quicker contract release given his need to change things. OR if moving is not easy then I'd sit tight and tell him you do not accept the rent increase and he will need to evict you through the proper channels. Which will at least give you some time to sort things out.

Speak to shelter.
Or cab.

As a landlord using an agent I do understand that he might think the agents are overpricing things like the electrical certificates. My agent did similar wanting a minimum of £285 for something a local electrician I trust charged about £95!

That said my agent keeps my property fully let and I can send in folks I know for such things as electrics so all works well.

Point out to him that the rent is similar to other comparable properties, that he will be saving money by not using an agency and that you will have to move if the rent goes up. It will be hard to replace tenants at that price and the property could be empty for some time wiping out any profit made from the increased rent.

I suspect that he's having a tantrum about something or that he wants you to move out for some reason and doesn't want to go through the proper of giving notice/negotiating an end to the contract etc.

No doubt you need proper legal advice and proper notice, I would be contacting the agent too. I wonder if he is leaving the agency because they have already told him that this hike is too much.

Sounds very much as though he is wanting you to cover his rise in utility bills, water and national insurance, and then with your own increase you are going to be ££hundreds worse off.

How stressful for you but start looking for somewhere else and make sure he gives you proper notice.

The basics are when did you last have a rent rise? Is it more than 12 months ago? What would you get for £900 in your area what would you get for £1250 how does this compare with what you have now?

A text is not enough it has to be proper notice. Don't start paying the new rent. You can also apply as homeless if your rent is genuinely not affordable.