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?

As you are with a good landlord and happy with your accommodation I would give him it but ask for a new year long agreement so he can't just raise it again in a few months.

And laughing at those saying to get on the housing list.
Because it is that easy.

As a landlord, I don’t think he can do this within the 12 month fixed term contract. However, his costs have very likely gone up, and he very likely will look to formally raise the rent at the end of your contract (and with a new tenant), so I would consider paying it.

You are not being unreasonable as £40 it’s a lot of money when your on UC. However would UC not cover the increase in rent? If your landlord is decent your going to find it hard to rent elsewhere when your contract is over. You could actually apply for a DHP(Discretionary housing payment) which will cover the shortfall for your rent you can do this by contacting your local council who will give you assistance. Would looking at council/social housing not be a better option for you that way it will be covered by UC.

If you are on Housing benefit would that not be increased to cover the rent increase. Under the circumstances you describe I would pay the increase although strictly speaking it shouldn't go up till the end of the contract but you could read the small print to see if it says anything about rent increases.

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

What "rising costs" is he having to absorb?

You need to find out exactly what he can and can't do and take it from there. Citizens Advice Bureau can help. It's no good just thinking he can do this or that, you need to be sure. Only then can you make informed decisions. If he can legally raise the rent thrn you have no choice but to pay. Negotiation is the key here. Not every landlord is a greedy Fat Cat. If he can't legally raise the rent, CAB should be able to help you write a suitable response to his letter.

So thats around £500 a year more.

Would moving out, finding a new place, putting down a deposit, actually moving... cost less than £500?

Would you be guaranteed a landlord who is easy to deal with directly and does repairs promptly etc etc if you did?

I think thats a no on both counts, so regardless of legality... I would cough up tbh.

If I felt like it wouldn't rock the boat I might ask for a signed thing from him saying he wont put the rent up again for another x months, BUT.. I mean if you did that and he really wanted to he could just wait til the times up and put the rent up even higher... so...

I like this idea. If not this, I'd initially offer an increase of £20 but be reluctantly willing to pay the whole lot if he wouldn't budge. I agree good landlords (and good properties) are hard to come by, especially if you're on benefits. Tenants and especially tenants on benefits are in such a precarious position. 😔

I do think he's slightly taking the piss though - can imagine he is (like the rest of us) feeling the pinch, but the electric bill for a light bulb in the communal hallway is not yet up by £40pcm 🤔

Unfortunately I think any new rental is likely to now be priced higher than you signed for in Feb, and I imagine once the contract switches to rolling this one is going to jump up too. Which is why I like the suggestion to try to lock in the new price for longer.

i applied for social housing last year but the women I spoke to basically said ‘you have no chance’ (in kinder and more polite terms) which is understandable. I’m on the list which I know I’ll never reach the top of!

asking him if he meant to include me in his mailing list (rather than the rest of the tenants who have been here longer than I have) might be a good idea. If he says yes he meant to, I guess I’ll just pay it. I worry that saying no I can’t afford this will make him reconsider keeping me as a tenant because he’ll think I’ll not be able to pay on time in future.

UC won’t cover this increase as I’m already receiving the full allowance for rent

My dad is a high priority for age/medical and he is still waiting two years later… so agree with you there!

Landlord here, firstly have a look through your contract to see if he’s legally entitled to do this. As someone else said, get in touch with Shelter for advice.
Secondly, write to or email your landlord to explain your position if you’re going to struggle paying a rent increase. I probably wouldn’t suggest meeting in the middle straight away just see what he comes back with first.

Yes, if you were on a fixed term contract, because those are the terms you signed up to, and the bank can't just increase them. Which is why people are asking OP exactly what her contract says. If she signed a contract agreeing to x amount with no caveats about increases then she has no obligation to pay more than both parties agreed.

I’m a landlord. The owner can only increase rent once a year. Discussions about another 12 months if he agrees not to Increase the rent are wrong, especially as you’re max 5 months in.

Presuming your ll has a few properties I would write to him asking if he perhaps meant to contact you along with his other tenants as you’re on still in the first 12 months of a fixed AST. Then say you are happy to take this letter as official notIfIcation of the increase from x date if it helps. It may soften the blow and show you’re very reasonable if he can be.

I would phone him and ask if he meant to send you the letter, or was it a mistake because according to your AST contract the rent is fixed until (date).

you can say you love living in the property and hope he agrees you are a good tenant, but you are also of course facing sharply rising costs due to cost of living increases, and £40 isn’t an amount you can find every month/week in your budget given that by the winter you will be needing to pay 50% for heating and 10% more for food.

Suggest a compromise on £20 a month extra, but he will issue you a new contract for one year starting now in recognition of the increase so that you know you have some rent certainty ahead of you.

What is the % increase he has asked for? I expect his “rising costs” are variable interest costs on a BtL mortgage and he is trying to preserve his profit margin.

I'm a landlord. I own one property to let out. I care for my tenants and make sure repairs are done promptly. Your words which cast virtually every landlord in a bad light upsets me deeply. One lot of repairs wiped out a whole month's rent and left me out of pocket. The rent for me is the difference between just managing and being able to afford a few little luxuries. We know tenants are having a hard time but it shouldn't be expected that Landlords should automatically pick up the increase in cost of living for their tenants. We provide a service. Services have to be paid for by the users. We're people too and I 'm fed up of people trying to treat us as Cash Cows. There has to be a middle road somewhere.

You know he'll increase now and again in Feb. Perhaps you can negotiate that if he raises now it's early for feb and not to raise again since legally he shouldn't be raising.

Yes, I would ask him if he meant to include you in the letter since you have a year's contract which is still running. Or act a bit dumb and say, yes I'll be happy with that, and will arrange to increase my rent payments once our 12-month contract expires.

That might be enough to make him realise he can't actually raise the rent yet.

^this

He’s just gonna keep doing it. Tell him he can try increase rent when you renew the contract and leave it at that.

its a lot of hassle to evict someone and find a new tenant and potentially have the place empty for a period of time

not sure it’s worth the extra 500£ he’d get for the hassle

id say it’s worth the risk

For the sake of £40 a month I would pay it

We're people too and I 'm fed up of people trying to treat us as Cash Cows.

Seriously? You think tenants are making money out of landlords? ffs

My landlord is actually lovely, but I'm not making any money out of her. I pay way more rent to live here than I would if I had a mortgage on it, and paying so much rent makes it much harder to save enough money to actually buy. Plus there's a real lack of security, if she decided to sell or raise the rent beyond what I could afford, I'd have a month to find a place to live. Not to mention, I can't make any alterations to my home, and even if I want to paint the walls I have to check with her. Renting isn't like this in most of Europe, by the way - in most countries, tenants have rights and security.

If you're suffering from being a landlord, then maybe it's time for you to sell up and do something else.

Tenants can always discuss rent increases. Why not offer £20?

Is that the world’s tiniest violin I hear playing…

How is the cost carrying out repairs on your asset relevant to your tenant? It’s just a cost associated with owning a property.

And no one is disputing putting up rent to genuinely match rising mortgage/ bill increases, but it’s illegal to do this within the first year of a tenancy. And for good reason. The middle road is increasing the rent within the parameters of the law.

what words have upset you deeply? where have I cast virtually every landlord in a bad light?