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?

It really isn't that easy, especially if you don't have children. I was struggling to afford my private rent, was in debt every month, applied and told that unless I've got children then I've got no chance and even then it's a long wait.

This puts into question his commitment to honouring the agreement you reached only 5 months ago and I would be wary about his sense of honour. What's to stop him from raising it in October, when we're due another wave of price increases? Tenants are already more vulnerable due to the instability of renting, so the very least landlords can do is respect the contract.
Can you ask him, in a friendly and non-confrontational way, for a breakdown of the increased costs he's facing which justifies the £40 rise? I would say you're entitled to do this given he's asking to scrap the contractual terms he himself chose to negotiate.
Because there's a big difference between rising costs linked to the tenancy and a rise in his general cost of living. You shouldn't be expected to subsidise the latter, just like I would only ask my boss for a raise on the strength of my work, rather than due to a decline in my personal circs.
Good luck OP.

I really, really dislike these chancers but I guess they are providing a service and there have been a few threads recently where people have just been finding it hard to find anywhere to rent as a lot of landlords are selling up, so I think bearing that in mind I would just pay for the sake of the security. The whole housing situation in this country is crazy.

Hahahah @Longleggedgiraffe feel zero sympathy for you

you can afford more than one house - if you can’t afford the second house anymore you sell it.

property is an investment and it can go up and down and it’s a risk

you can’t expect to always make a profit Unfortunately

sell up if you can no longer afford it

I don't think it was you OP, but people failing to see how landlords have rising costs and demonising them for increasing rent costs.
We won't be increasing rent on any of our properties as rising costs aren't really affecting us, but many landlords have one property to eventually make some money for retirement, some have inherited a property and are trying to supplement income... They will be paying more for their fuel, energy, food, etc. too. Mortgages will be more expensive when fixed terms run out, I think it's reasonable to expect a fair rent but not reasonable to expect rent to stay the same for a long time when everything else is going up.

Aren't section 21s going? Not sure when but the law is changing to prevent revenge evictions.

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-1

No, you don't have to agree but given your circumstances, in your shoes, I would likely negotiate or agree.

I wouldn't make waves just yet. I know that section 21 is soon to be abolished but hasn't happened yet. Also may be worth contacting Acorn for advice.

To those saying he should restart the clock on the contract if OP does pay the new rent - he clearly doesn't respect the existing contract, so why would he respect the new one and not interrupt the new 1yr term?
Don't get me wrong, it's a good suggestion, but only if he behaves ethically.

Legally he can't raise it- the reality is given the current situation it might be simpler to just to pay up sadly - if you don't- he can't boot you out- but he may be less likely to renew

@Longleggedgiraffe Do you handle the let yourself or through an agency? I'll admit DP deals with ours mostly so I'm not 100% sure how it all works, but landlord insurance is a must if you don't already have it. The agency is also great in that the tenants will contact them if there are any issues, and they will either ask you to okay it or go ahead and fix it. E.g. If a pipe bursts at 3am they'll call the agency emergency line and they'll send an emergency plumber out, or if they want to lay a new carpet/have a non-urgent issue you'll be contacted and they'll pass on whether it's okay to do or not (or you could choose to do a repair yourself to avoid paying a contractor).
There are the agency fees to consider, but overall makes it a lot easier and (I think) more cost-effective than having to do it all yourself.

I'd refuse to pay the extra now. You agreed 12 months at £x not £x + £40 after 5 months.

They could be trying it on, who's to say when you get to 12 months the LL doesn't put the rent up by another 5% or more?

I'm not in your shoes and you do have my complete sympathy, the LL has put you in a really difficult position and they know it.

You should sell up. You clearly don't have a head for business.

Are you prepared for the end of no fault evictions? How are you preparing for the changes to EPCs?

It sounds like you don't have any contingency cash - not good business sense at all.

YANBU. He can't increase it until Feb 23. Have a look at the Shelter website.

The problem is that landlords have tenants over a barrel still and, with your low income and UC you will find it hard to find somewhere else. It's a very difficult situation to be in.

I'm afraid @Longleggedgiraffe, not many people are going to have a lot of sympathy with landlords who haven't managed their businesses well treating tenants like cash cows under circumstances where it is illegal to do so.

It really doesn't matter if it is legal - it's not. But presumably you can't get a better deal or you would have chosen it. So you pay up or find yourself evicted as soon as legal. Or like most landlords right now, he sells up. Will you be able to afford to buy it? No you won't so better keep your landlord on side. The demonising of private landlords has resulted in there being very few left.

But a 12 month tenancy agreement is more akin to a fixed rate mortgage. My fixed rate mortgage has not gone up and I'd be pretty pissed off if the bank decided to increase my payments by 40 quid a month anyway because of the cost of living.

Personally I would accept this increase. It could easily cause you far more issues long term not paying it.

If it's so hard and do you feel you are being treated as a “cash cow”, why don't you sell your properties? No one's forcing you to be a landlord.

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.

@originstory try not to think ahead to what you think he might think.

If necessary, head that concern off by clearly stating in your correspondence that you always prioritise your rent and will not become unreliable. You're acting responsibly by highlighting to him as your landlord that the unforeseen increase of £40 isn't something you've been able to budget for when it was your expectation that the monthly rent you are being charged was set for the duration of the 1 year contract. You want to meet him half-way and would propose that £20 would be sustainable for you at this time.

if he's a reasonable person he will take the £20 and see you as someone who is reliable, cooperative and communicative. What you wouldn't want to do is flat refuse to engage, or show you're not willing to acknowledge the cost of living increase.

A compromise solution is good for both parties and just as you value him as a good landlord, he is equally lucky to have a thoughtful person like you as his tenant.

You have a contract. He can't raise it for a year. He needs to suck it up unless it says that within the first year he can raise the rent. I doubt you would have signed that though.

Absolutely what i was thinking

Except it’s highly likely that her rent cover beyond his mortgage so your point is ridiculous

Your LL CANNOT increased your rent during a fixed term unless you agree.

I would certainly not agree and remind him the cost of living increase affects his tenants as well. What an ignorant, self absorbed idiot. He’s also not a ‘good’ landlord for doing repairs, he has a legal obligation to do so!

You need that £40 more than him!

Do not be held to ransom by the threat of a Section 21 at the end of your current term. Section 21s may be abolished by then and even if you were served one, you don’t have to leave unless there is a court order for possession which could take months. Also don’t allow viewing if LL wants to get you out. The void period will probably be more than the rent increase so would be a stupid thing to do. Even if LL wants to sell which will also take months from you leaving.

As for the PP whining about repairs taking a whole months rent, by doing them you are maintaining your asset, keeping its value and carrying out your legal obligations which you agreed to when you chose to rent out your property. You’re not picking up anything for the tenant. What a disgusting attitude.

i was a bit hesitant to post here for fear of people being arsey about me being on benefits but haven’t found that to be the case at all, so thank you for that!

So agree.

woe is me for having assets that cost to maintain, Jesus. Imagine never knowing when you could get kicked out and become homeless through no fault of your own