my landlord’s unable to absorb cost of living increase

[originstory]

so he’s raising my rent during a 1 year contract. AIBU to refuse?

I got a letter from landlord saying my rent is going up by 5% (£40). he explains that he’s no longer able to continue absorbing rising costs so has to pass it onto his tenants. regrets having to do this, feels forced into it by circumstances beyond his control etc. if I had a rolling month to month contract, fair enough, I’ve had rent increases in previous properties which is just what happens. but I signed a 1 year contract in February so didn’t think he could raise the rent during that contract? my googling appears to back me up but maybe someone will tell me I’m wrong. however, I’m considering just sucking it up for an easier life. AIBU to dispute this?

reasons to dispute it:

• I have a contract until Feb 2023 so I feel he’s being cheeky to increase rent during it. Obviously it will increase when that ends and converts to a month to month rolling contract, which is fine.
• The cost of living increase is hitting ALL of us (and will continue to get worse) and I must admit I have less sympathy for a landlord who owns multiple properties than I do his tenants
• I don’t have a high income (at all) due to reduced capacity for work due to a chronic illness, which he knows. in fact it’s so low that I started claiming UC for the first time last year, so I resent paying him an extra £40 a month that could go towards my gas bill or food shopping

reasons to just agree:

• he’s a good landlord, sorts repairs and problems promptly and reasonably
• he’s correct in that he’ll be paying more for hallway lighting etc
• he’s a nice man so I’d feel bad saying ‘i’m not giving you more money, too bad’
• 5% is a very reasonable increase so it seems stupid to cause problems over it. If it was more I’d have less of an issue saying no
• I felt lucky to find a landlord to rent to me in the first place due to my low income/ being on UC so it would be stupid to sour our relationship over £40
• If I refused to pay I’d be wondering if he’s going to get rid of me when the contract is up because I ‘caused trouble’ and then I’d be back in the position of not knowing if I can find anyone willing to rent to me. i had several agencies refuse to let me even view properties as I’m on UC (illegal but it still happens)
• honestly, I don’t like confrontation and it’s simply easier to just agree

AIBU to dispute this?

I think she meant "reviled".

Just pay it.

Are you able to cope with the stress of a possible drama and being evicted as soon as he's legally able to evict you? Will it be easy for you to find another place? Even if you can, what are the chances of finding another nice, decent landlord?

I'd just pay it for the sake of my mental health. I couldn't deal with the conflict and the uncertainty of maybe losing the place for the sake of forty pounds.

@originstory I'm trying to see what practical advice you're being given 🤔

•Have you had £150 rates rebate and are you eligible for a reduction in rates due to low income?
•If you have an energy account you will get £400 towards your winter bills payable over 6 months
•!As you're on UC are you eligible for the £650?
•Check with your council for any further help
•There is a scheme Warm Homes Discount which is available to those on low income. This was being changed this year and the govt haven't announced the details as yet. Keep a look out.
•Many areas have food clubs where you can collect donated food from the supermarkets for a small donation. Look for one of these.

I'm not sure that's totally true. It's smoke and mirrors - they've tinkered around the edges of mortgage interest relief, but put in multiple props that have boosted asset values. As a capital gains play they've helped.

Unless I've missed an update from the OP the Landlord has only asked for an increase there's been no threat from the Landlord at all.

@Ouchmytoe100 she is on universal credit. Just paying it might not be an option or might mean not being able to afford to heat the house at all.

No there wasn't. There was council housing, but it was not freely available, there was still a list and a very long wait. The PRS was very poor because the Rent Acts put landlords off, because they made it very difficult to both evict and or increase the rent. At the end of the 70s the Rent Acts were abolished and the Assured Tenancy introduced, and then the Assured Shorthold Tenancy in if I remember, the early 80s. So the housing market at that time was dire, as it is now. And, there was a huge amount of very poor slum housing owned by large corporations and slum landlords with very little help for the tenant in those circumstances. Things are very much better now, for both the tenant and the landlord, although the market is becoming skewed again due to changes in Housing Law that are coming and those already recently passed to make rental properties scarce.

@Eeksteek Get a job

Owning more than one house is inherently greedy, that's why people don't like landlords, because most landlords own more than one house, which is undeniably greedy in a society when many, many people can't even afford one.

Sorry thought I had. No I don’t and I would never do it. As evidenced by the fact that I’m broke.

Let’s suppose your landlord is a pensioner, with one house. Your rental income is his income. If he can’t manage on that income, what is he supposed to do?

he can sell the house out from under you
he can slip into debt, and, eventually the house will be repossessed and sold out from under you
he can hold out somehow, then raise the rent a lot next year and ensure he has more cash reserves
or he can ask to raise the rent

which of those is his least worst option? What would you do?

On the other hand, if your landlord has 22 properties, fancies a new range rover and this is how he’s funding it, he a bastard.

not all landlords are the same. Landlords are real people. Yet everyone universally hates them all and thinks they’re all money-grabbing-bastards whatever they do. I’d love to be a nice landlord. But it doesn’t actually seem to be possible.

@SwanBuster

The inflation of assets prices has been global but I do agree with you.

Tory Gov since 2010 - CGT on 2nd homes, removal of tax relief on mortgages, abolish letting fees, removal of section 21 no fault eviction, EPC regs.

Yes, that's what my mum did when my dad died when I was 7 and my sister was 4. She was a widow with 2 children @Eeksteek

Your child is 12 now and your husband died 5 years ago.

Oh I assumed she meant some sort of council tax increase with regards to empty properties, what other penalty do you think they could possibly impose on property sat empty in the UK ?

because of how revered landlords are

Well most of the landlords here think they are angels for renting their house out to rent paying tenants.

I bought a sandwich from the Co-Op earlier. Should I be eternally grateful for them for letting me buy that sandwich with the salary that I have earned and paid tax and NI on?

Let’s suppose your landlord is a pensioner, with one house. Your rental income is his income. If he can’t manage on that income, what is he supposed to do?

The landlord's retirement planning is his problem and his problem alone. Perhaps he should get a job to top up his income.

I hate, hate landlords and their forever entitled behaviours!

If they can't " afford" to amass capital riches then they should find another way of lining their pockets that require smaller initial outgoings.

I refused to pay an increase recently. He wasn't called out even once during my 2 year stay. Apart from the yearly certificates... What other increases? His mortgage!? Not my problem. I'd love to be able to choose a landlord without a mortgage.

I refused the increase (you bet one of many to come) and moved before being asked to.

I don’t think it’s reasonable no. I do think you’ve been given some great advice here.

This is not the same at all and surely you know that?

If the landlord is a pensioner and has a house to let as well then he's getting state pension plus his rental (and I'm presuming he doesn't have a mortgage) so should be able to get by given that many get by just on state pension. If he can't get by even with the rent on top of pension, then he needs to sell that house and use the funds to draw down on to top up his pension. There seems to be some thinking going on that no one should have to sell assets at any point. That is plain daft, if you can't manage then you need to liquidate your assets into hard cash

No it's the sound of some one who recognises a bit of courtesy of not derailing @originstory 's thread with detritus about landlords and whose posts are clogging up this thread and mouthing off while contributing bugger-all to actually assisting and supporting @originstory Your ignorance just shows you up.

re posters saying ‘if you want to stay long term you should pay the increase’, I agree somewhat, hence my post. i actually don’t love this property (in fact there are things I hate about it) and would never have taken it if I’d been a more ‘attractive’ tenant with my pick of the market. I’m not desperate to stay on at the end of the tenancy BUT the fact that I’m a pretty financially shit tenant means I was delighted to find a landlord that understood my position and was still willing to rent to me. i snapped his hand off taking this property and felt so lucky to get it and although I sometimes come home and think ‘I really don’t like my home’, at least it’s a place of my own, rather than a cheaper flat share. In an ideal world I’d move to a much nicer place but clearly I’m
not in an ideal position as a tenant hence being worried about losing this place by rocking the boat. I don’t love it but I also don’t hate it in the same way I’d hate a flat share situation. Which is telling me I should just suck up the rent increase. Landlord has read my message but no reply so far

ps thank you for all the replies and helpful advice

That is a fair point, so I shall bow out and sell up. Clearly landlord=bastard, no matter what. I don’t know what renters will do, but given the animosity, I’m just relieved it won’t be my problem.

OP, I wish you luck. I hope you find a solution and I hope your landlord doesn’t sell.

The thread really hasn't gone your way, has it.

Agreed - that's global ultra low rate central bank policy that's boosted asset prices, not just here.

For balance on what our gov have done though -

help to buy 2013 was a total charade that should have been labelled help to sell, and almost instantly put 20% on the price of housing.

Then we had the recent stamp duty holiday - now, stamp duty is a stupid tax, but any tinkering causes stupid behaviour by the public. The one thing stamp duty does is it has to be paid in cash - you can't borrow for it so by lowering it and allowing people to put more down - up went prices.