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?

OP, the problem is that if you accept this rent increase, you have both broken your contract. There's nothing to stop him increasing the rent again in October, and again when your contract ends. I wouldn't want to take this risk. Your LL is showing that he's not trustworthy.

I understand why people are saying to absorb the increase for the sake of an easy life. But I think it's too much of a risk to take. I think it's better to politely decline.

Why don't you save the £40 each month and then when your contract is up in February, you'll have a little bit of a buffer for the rent increase that will come then - or to put towards a deposit if you decide to move out.

Thank you, Eeksteek. You have said what I wanted to say, but I was so mad at some of the remarks I let my temper get the better of me. I get so fed up of people assuming I’m rich and I’m not.

I have nothing helpful to add about whether he is, or isn’t allowed to do this, but if I could afford to pay it without missing out on meals etc, then I would try & pay it. He’s a good landlord in all other respects and the situation is absolutely dire for private tenants at the moment, even if they’re not in a vulnerable situation. You could probably decline, but what will you do at the end of your contract if he doesn’t want to renew it but just advertise for a new tenant at a higher rent? There are so few properties around at the moment (especially who are willing to accept tenants on benefits) that he’s not going to lose hundreds of pounds by having it left empty for any amount of time. Rentals are being snapped up quicker than they’re becoming available.

If it does mean that you’d be missing out on meals etc then I’d be honest with him, tell him it’s the difference between eating and not eating, and ask him whether there is any wiggle room for a smaller increase.

All those saying £40 isn't a lot.
£840 is though, isn't it? Which is what it's going up to.
£40 might not seem like a lot but put it into perspective. We have a person on benefits expected to pay £840 a month in rent. How is she supposed to heat this property? Feed herself? That's extortionate rent, unless it's a fucking palace.
£40 is half my weekly food bill for a family of 4.

@Eeksteek

Another one with no business sense. Do you have any contingency cash for repairs?

How are you preparing for the end of section 21? What's your plan if the tenant stops paying rent? Do you know how long it takes and how expensive it is to legally evict?

Are you ready for the changes to EPCs?

This has to be a pisstake? You think that you are treated as a cash cow as a landlord? Hilarious. 🤣

I think more tenants should be grateful someone has a home for you to rent

Fucking hell, I don't think I've ever heard anything so smug and self entitled.

It's a business transaction. Tenant pays landlord for use of property. Is that hard to grasp?

And they will say ‘put the rent up, you lousy business-person!’

So what’s it to be? I’m a poor businessperson or a bastard landlord. You can’t have it both ways!

And landlords are wondering why they are so widely disliked.

@originstory have you applied for the extra funds (might be automatically applied) to go towards extra bills, it’s around a thousand pounds I believe?

Grateful? People should be grateful that greedy people are profiting from them needing a home? Surely someone else having us on!

Totally depends on your contract. The company I work for is raising rent (rent does include all utilities though) and we have to give 30 days notice and the option for tenants to decline increase and break their contract with us with no penalty.

I’ve not heard of this? I will have a Google, thank you

@Eeksteek @Longleggedgiraffe

Please tell us you have planned for the end of section 21 and EPC changes. You aren't planning on doing anything illegal are you? Remember, ignorance is no defence

I expect they will tell you to sell at least one of your properties, since you are apparently living on thin air. You do sound like a terrible businesswoman. It's not for everyone - maybe you'd do better with a proper job.

My mortgage is more expensive and landlords are getting hammered across the board. I'll have no choice but to raise the rent for my tenants next year.

Op, you said you receive the full housing allowance within your UC, but are you aware the housing element was increased in April ? Worth checking with them.

If you think its hard to find another rental right now just wait until Section 21 gets canned. Expectations are that up to 50% of landlords will say fuck this and sell up.

Your landlord sounds like a decent human being, despite what the anti landlord for no reason other than they hate people working hard and owning property crew would have you believe. I'd negotiate with him at £20, and see where you get.

It works both ways, both good landlords and good tenants are hard to find. If you're happy, with everything else then just talk to him and see how he responds.

I'll have no choice but to raise the rent for my tenants next year.

Presumably you won't try to do it illegally mid contract though? Nobody is saying landlords should never raise the rent, just that they should stick to the amount in the contract that both parties have signed.

People have a very low value of 'decent' when it comes to landlords it seems. In what other sphere would trying to do something illegal be thought of as decent?

I’ve messaged him asking for clarity regarding the fact that I have a contract until February. Will see what he says and go from there I suppose

With regards to being given a section 21, it sounds like he wouldn’t be able to kick you out before the end of your contract anyway.

Did he give you a guide to renting? The gov website says the following for England:

“When you cannot use a Section 21 notice in England
You cannot use a Section 21 notice if any of the following apply:

it’s less than 4 months since the tenancy started, or the fixed term has not ended, unless there’s a clause in the contract which allows you to do this
the property is categorised as a house in multiple occupation (HMO) and does not have a HMO licence from the council
the tenancy started after April 2007 and you have not put the tenants’ deposit in a deposit protection scheme
the tenancy started after October 2015 and you have not used form 6a or a letter with all the same information on it
the council has served an improvement notice on the property in the last 6 months
the council has served a notice in the last 6 months that says it will do emergency works on the property
you have not repaid any unlawful fees or deposits that you charged the tenant - read the guidance for landlords on the Tenant Fees Act 2019
You also cannot use a Section 21 notice if you have not given the tenants copies of:

the property’s Energy Performance Certificate
the government’s ‘How to rent’ guide
a current gas safety certificate for the property, if gas is installed
You must have given your tenants the gas safety certificate and the ‘How to rent’ guide before they moved in.

You must have given your tenants a copy of the property’s Energy Performance Certificate before they rented the property.”

your contract MUST have about rent review clauses in it.

what does it say?

you’re in a fixed term contract right now yes?

No. You’re right. He cant

plus they can’t do non fault eviction. BUT all he has to say is that he’s selling the house…..

This is so baffling.

The OP isn't upset because her rent is going up at the end of the year, she's upset because the landlord has broken the contract to raise rent in the middle of the year.

That's like your fixed-term mortgage saying, oops, planned wrong, we're actually raising your mortgage payments by 1% even though you're supposed to be on a fixed term. If you don't like it, too bad, we could always evict you and get in someone with a higher income. I doubt you'd like that.

She isn't treating her landlord as a cash cow, she's treating him as a man who signed a contract and is now trying to amend it midstream.

As for @Eeksteek's business sense, I'd say that if you're living below minimum wage with three properties, you either need to get a job or to sell off one of the properties to supplement your income. The former would mean that you would have to work; the latter would mean that you'd lose capital, so a sacrifice but a reasonable one. You can't keep living on below minimum wage because you're worried that a future landlord will be shitty to your current tenants.

And @Longleggedgiraffe, no one is accusing landlords of being rich malcontents. But they should be held to their contracts. And it's beyond awful that the current dire housing situation means that the OP will probably have to cough up an extra £40/month because she knows that if she refuses to go along with him breaking the contract, he can turf her out next February. Don't tell me landlords are the ones without the power...