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?

Absolutely!

we’re already losing tons of properties because of the price rises with houses. I’ve got one poor family who have lost their house 3 times in 13 months.

Boo hoo, poor little landlords paying their mortgages with someone else’s earnings might decide its not a viable business anymore. Tiny violin plays in background

Meanwhile, the half decent people renting the odd room/house to supplement their pension will continue as they were, without the scaremongering.

If you want to agree to it @originstory then I would use it as an opportunity to vary the term too - so for example add on 6 months at the new rate so you know you'll have a bit more security. If you are varying the lease anyway it makes sense, and make sure the LL pays any costs of the variation (eg agents)

I'm a reluctant LL and I believe rents should be fixed within contract. We haven't put up ours in 3 years we only increase when the tenant moves out. We want tenants to stay and see the property as their home. Mortgage rates are rising but LL should be preparing for that. I think it's unjust to raise rent mid contract.

Has to be the funniest comment ever on here !

I don't think you can increase the rent during the period of a contract. Also. any landlord values good tenants and the landlord also incurs costs when tenants change. In the first instance I would talk to him and say that you are struggling with the increased costs of living and had budgeted on what you thought was an agreed rent in the contract.
Keep it friendly and hope he just agrees not to change your rent. If he insists, you might have to rethink. Please come back and tell us how you got on.

@Nanananananana99 that's too simplistic a view. It's a transaction- the landlord provides a resource and the tenant buys it. Not everyone is in a position to buy so a rental market is a necessity. When the rental stock is low the rental prices rocket.

Do you think the banks will suddenly be kind to all the people who don't have the opportunity to buy at the moment and offer them 100% mortgages during an economic crisis? Or do you think it's more likely that the gap between rent and mortgage repayments will widen further?

My business sense is just fine, thanks. I’ve been renting for 20 years.

Yes, I know what a pita it is to evict. I’ve only had to do it once, thankfully. Again, Landlords are all bastards, but it takes six months and courts costs to evict someone who isn’t paying. Either we hold contingency and charge to maintain it (bastard landlord, sitting on piles of cash) or we evict at the drop of a hat (bastard landlord etc etc) or we have no business sense and deserve to be poor. Or we sell up when the market’s hot and renters complain there’s no properties and they’re had over a barrel when we put the rent up to cover unforeseen cost of living increases!

I have contingency cash for repairs. It’s not infinite. And we have had some awful years (remember them? They happened to landlords too, you know!) And if I spend it on increased costs, as I am doing, what then? Inflation affects us too.

I’ve already increased EPCs. I work with all my tenants and put a lot of effort into making sure I provide the nicest and safest home I can, far above what I legally must. I didn’t increase rent last summer, because those tenants paid on time and stuck with me during covid, and we were doing alright then. But my costs have increased massively, like nothing ever before, since Christmas.

I am doing all I can to prepare for section 21 changes. Legislation changes, it’s the way of the world. I’m pleased to see things are improved for renters, but renters need to see that it comes with a cost. Which will be passed on if landlords are not to go bankrupt. It has to be, or we are accused of having poor business sense (only we mustn’t put the rent up. That would be outrageous!)

And as for the ‘get a job’ argument. Unless you use an agency or employee staff, then it IS a job. All those things I mentioned don’t just happen while I get my nails done! It’s not always full time, but I’m a lone parent bringing up a bereaved child. I’m already stretched pretty damn thin!

Those of you saying don’t pay, what do you want landlords to actually do here? Genuine question! I don’t want to be a bastard, but I’d like to stay solvent, if that’s alright?

Those of you saying don’t pay, what do you want landlords to actually do here?
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Do you think it’s reasonable for a landlord to up the rent in the middle of the lease, therefore breaking the contract we both signed @Eeksteek?

That's a lot different imo.

Mortgage is going towards equity in your property that you can (potentially) use in the future.

Rent (especially for a landlord with multiple properties) is going into someone else's pocket and doesn't count towards any equity that the rent payer can use.

How about just not buying up multiple properties in the first place ?? It's landlords like you that have contributed to pushing house prices out of reach of the average person. . You talk about " all my tenants", how many o you bloody have? People like you make me sick.

@Gossipxox discretionary housing payment will not be given if the landlord is illegally raising the rent. The council will just say the landlord can not charge the extra.

@Eeksteek

On what planet does living on less than the minimum wage constitute good business sense? From what you've described you are living below the poverty line.

If you inherited the properties from your late husband then presumably they have no mortgage on them?

You then say you've been a landlord for 20 years. So your late husband died 20 years ago? But then you say you are caring for a bereaved child. It doesn't add up tbh. If your late husband died 20 years ago then your child must be at least 20?

Oh, you have a choice. Sell the house and stop using debt to fund your asset purchases.

I am amazed at those arguing it is okay to break the law because of rising cost of living.

I have reduced all my rents by 20% for one year and also do 11 month rent with December free. I am able to do this and won't want to exploit people who care for my property

Maybe get a job then. Sorry but that’s the reality of life

I’d speak to shelter about this. We signed a year long tenancy and our landlord tried to up our rent by £100 (over 10%) half way through. We spoke to shelter and showed them our tenancy agreement and they said we didn’t have to agree if we didn’t want to. So we didn’t. Our tenancy is ending soon though and they said if we want to renew for another 12 months then rent will be £100 more, which they are legally allowed to do. We are looking for somewhere else.

To all mortgaged landlords. If you can't pay your mortgage by charging a rental cost the market will bear - that's your fucking issue.

If you all stopped inflating the money supply by taking on debt, this country wouldn't be in the mess it is when it comes to housing. To be frank - the same applies to owner occupiers who are paying these ridiculous prices.

Just fucking refuse. Let's see what happens to the housing market if every first time buyer strikes, and everyone refuses to pay more than 30% of their income in rent.

You sound like an awesome landlord. Well done.

@Eeksteek if you're that skint then the obvious answer is that you sell one of the properties... that way you'd have money in the bank. If you need more then get a job...

To be fair, I don't have any mortgage and am just trying to get a pension. But it's their home and would never make them feel otherwise. I also welcome pets and DSS. Why wouldn't you? During furrow, one guy was struggling so did rent free for 2 months as 7 years at 750 a month should do that

What typically happens when people refuse to pay their rent is they get kicked out of their house. Is that news to you ?
I own a property that frankly if anyone started that shit with me I would just leave to stand empty and get the long-term capital gains rather than rent it to somebody, not really the result you’re after is it ?

You aren't losing £300 by renting out your property if it's providing you with an income though are you?! You are making money rather than loosing money.

I would just leave to stand empty and get the long-term capital gains rather than rent it to somebody, not really the result you’re after is it ?

Landlords are widely disliked and the government knows they can / have to change how they are treated. You know a not inconsiderable empty home tax is on the cards don't you?

The Tories need to capture the under 40s vote and it looks like they are planning to do that by making things tougher for landlords.