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?

Raising your rent in the middle of the contract is morally wrong in my opinion, regardless of whether your contract allows it or not. Then again, most landlords have no morals so I guess we should not be surprised. You say he is a good landlord otherwise, but is that 'good' or is it 'good in comparison to your average landlord' I wonder? Surely a properly 'good' landlord wouldn't do something like this?

That said, he would appear to have you over a bit of a barrel so I guess you have to weigh everything up, shit as that undoubtedly is.

I personally believe that no-one should own more than one house and that rental properties should be provided and maintained by local authorities and councils. This would return so much housing stock to the market that the demand for rentals would be very low anyway as all of those people who currently rent only because they cannot afford to buy (because of properties being hoovered up by the already property-owning class) would now have the potential to own instead.

Never going to happen of course because the country is run by the property-owning classes for the benefit of the property-owning classes and they have also successfully brainwashed everyone else into thinking that public sector = bad and more public sector provided services = socialism = super bad.

Unfortunately any kind of tax like that would be extremely unpopular with the foreign investors that London is flooded with for example so I don’t think any government will be pissing them off any time soon.

and rent caps will not be a thing whilst most of the government actually have by to let portfolios, most of them voted against rented property is being fit for human habitation I seem remember, across parties, so let’s not dive too deeply into the world of fantasy.

Can people take their grievances about landlords and other goady comments off the OPs thread and start their own thread if they're really that riled. The OP is worried about this affecting the roof over their head, can't you stfu about your petty resentment and focus on their problem only. It's their thread.

as far as letting it stand empty - great - if you own the house outright, do what you like with it. Your capital gains play is based on financial engineering though, thanks to easy money. Good luck with that it a tightening credit environment.

An sadly (tiny violin sadly) for other landlords though, many have bought with debt. Thus, they can't afford to not achieve some kind of monthly yield. But with the cost of living going up and up .... There's going to be limited to what people can pay. And not paying rent is an easier choice than not buying food, frankly. It can take a long time to evict.

😂 sorry for the juxtaposition!

I'm a landlord and some of the replies here are hilarious.

Fixed rate mortgages are a thing! If you, as a landlord, took a gamble to get a cheaper variable rate then you should suck it up or sell up. We all knew that super low base rates couldn't continue forever.

We are all facing increased living costs. I in no way expect my tenant to cover my living costs. Granted the cost of repairs (parts and labour) are rising but how often do things need fixing? I don't think the increase we are seeing in rents are at all justified.

Both myself and DH work full time, we are accidental landlords who had to move for work and wanted to keep our home. I spend on average about 15 minutes a week dealing with our rental. It isn't a full time job. And yes I make over £9.50 (or whatever min wage is!) a month.

Yes OP, that's what I'd have done in the first instance as well- just politely message him given you say you generally find him fair and a good landlord and point out I was in a contract until a set date, so would like some clarity and go from there. He may well acquiesce when this is pointed out and instigate the rise from the end of the current contract.

As long as it is phrased politely I can't see that it's that likely to cause a falling out to the degree he will start eviction processes. Not everything has to be a fight or a broader argument about the morality of being a landlord (no i'm not one and won't ever be in the position to be one). Just work out what's right for you here and open a dialogue to resolve it as best you can and know your rights should it happen to be the case you need them.

Is the cost of moving affordable for you and is there property availability at a price that matches what you currently pay? Will the prices be the same in a few months time should you move then? The moral high ground is all well and good but not if it ultimately leaves you house hunting with a deadline and spending more on a property. In the real world that wont stop him getting another tenant or stop landlords from existing, and won't necessarily leave you better off. It isn't fair but that doesn't stop it being true.

I personally believe that no-one should own more than one house and that rental properties should be provided and maintained by local authorities and councils. This would return so much housing stock to the market that the demand for rentals would be very low anyway as all of those people who currently rent only because they cannot afford to buy (because of properties being hoovered up by the already property-owning class) would now have the potential to own instead

you do realise the reason we have so little housing stock in council hands is because of right to buy, where properties were hoovered up at cut prices by those lucky enough to be council tenants?

that’s what has driven the private rental market up. Not the “already property owning class”. If the right to buy scheme didn’t exist we’d still have exactly what you describe.

Well not really because along with the abolishment of the section 21 they’re planning to digitalise the whole process which will mean the computer will just say yes or no to the section 8 which a lot more black and white, that along side private Bailiff‘s should accelerate the position quite considerably.

even with the Covid back log, evictions were taking place within six months, if they haven’t paid rent the CCJ that would accompany the eviction is then going to make it impossible for them to rent from an extremely limited pool apparently private rentals. Not gonna help with that position if they’re trying to purchase a house either is it? I fear you have not thought this one through @SwanBuster

Isn't it awful though that everyone is saying, yes help him break the law because he's 'nice'and you may not get such a 'nice' landlord/property again.
What have we come to?

@Eeksteek I genuinely felt sorry for you when you posted your situation on another thread . The thing is though I'm struggling to feel quite so sorry when you have inherited 3 houses. -
just sell one when a tenancy is due for renewal. If you feel guilty , offer your tenants a nice financial sweetener to make it easy for them to move- it really is quite ridiculous that you say you are struggling on £15,000 a year (I'm presuming this is your rent money and you don't have a job) and I'm presuming the houses are mortgage free ? I may be wrong. In which case your rents must be pretty low. Seriously , you need to get a grip, get cash in the bank, you can't heat and eat yet own 3 houses! That's madness and I mean this kindly. I would at least sell 1, maybe 2.

And for the record I am very much against accidental landlords and those who have properties that they can’t afford to maintain renting them out for no other reason than there’s far easier ways to make money.

It’s not unreasonable to break the contract- it’s against the law. If the contract isn’t clear around this matter then you need to start a negotiating in writing with a clear, concise and respectful tone, don’t be casual about it.

If your landlord is breaking the contract, I wouldn’t pay the extra but I would inform him in writing first so he knows what his happening.

Call landlords all you like, I’m not offended. There are some terrible ones, the state of some properties are disgusting.

Then, some tennants are rubbish too. 🤷‍♀️

I don't think you have either.

If people en-masse can't/won't pay landlords increased rents, the leveraged ones are fucked once interest rates rise. The house don't disappear - but the prices will fall to a value reflective of credit conditions, and other either owner occupiers or landlords/corps will step in and pay/receive what the market can actually bear

Are you in a flat paying your own rates, water and energy bills, not I gather in a shared house? So did you get a rebate of £150 on rates, are you not entitled to £650 extra for poorer households, you will get £66.37 for 6 months if you have to pay energy direct to the supplier

I'd see if you can negotiate a longer lease if your homes reasonable and I wish you luck as renting is dire here in Cornwall. People being made homeless as housing is sold off are moved out of county.

I think you’re over estimating the amount of leveraged landlords although I did see something the other day on Facebook or tiktok where they were recommending leaving just 10 grand equity in a house and I did cringe. Most have at least 25% equity as is the requirement for by to let mortgages.

if people don’t pay their rent they will get CCJS it’s that simple and then they’ll be out the market for two years minimum so your resistance to the machine will be futile sadly.

And of course sorry to keep going on @SwanBuster but currently the local authority if you’re in rent arrears will pay those arrears off to keep people in their properties because that’s the path of least resistance and that does not matter why they’ve acquired the arrears, they just get paid.

Because next year I will still have a business, and I thought we could weather the storm. I did not forsee the cost of living crisis. Last autumn, we were doing just fine. Selling and living off capital isn’t sustainable, and is bad option. Of course I can get a job instead, but my husband obviously can’t, because he’s dead. So I’ll always have to live on one income. It’s a race to the bottom. And plenty of businesses have bad years. I’m not sure I can justify inflicting another one on my child, though. So selling may be the least worst option and another family will be homeless. I had actually planned to retrain this year anyway, but long covid and menopause and my child’s sleep issues mean that it’s a challenge to find my glasses, let alone learn a new skill!

I have had a property for 22 years. My husband had several, and I have always had one, which I bought with the death in service benefits when my sister died in a car accident at 21. (People didn’t hate landlords back then). He did not ‘believe’ in pensions and he also cancelled his life insurance two years before he died and didn’t tell me, so yes, the properties are mortgaged. We ran the properties together. He died in 2017, and my child is 12. I’d just about got me feet under me and settled in a new area when covid hit, and I just about got that balanced and the cost of living thing went boom. In 22 years letting I have never known years like it. 2008 was easier, and that was only one tough year. There are also problems with the mortgages and other issues, none of which have anything to do with me.

My point is that most landlords ARE ACTUAL PEOPLE of course they can’t just absorb the cost of living crisis indefinitely. We’re not all fat cats living on piles of cash, and we still have to put the rent up.

Woop woop, its the sound of the thread police.

So the landlord trying to raise the rent by £40 justifies 8 pages of outrage, and you think I can sell, just like that?!

It’s someone’s home.

When you consider that the landlord is trusting to look after an asset of theirs often worth hundreds of thousands of pounds I think more tenants should be grateful someone has a home for you to rent.

😆😆

Isn't it awful that a thread asking advice can't help but turn into a landlord kicking thread?

OP, no your landlord is not in the right, and I think you're going about things the right way- it's fairly likely he's just mass mailed everyone or thought he would take a chance. So a 'was that meant for me?' message would be my first move too. That doesnt mean he will evict you. Most good landlords would only do it when necessary, and the void period/ cleaning/ advertising/ maintenances costs of a change of tenant is something to avoid where possible.

Whilst legally it isn’t in the contract that he can raise the rent and would be quite within your rights to not pay it. However I think whilst there is the threat of Section 21 being abolished there are going to be a huge number of rental properties that are going to stop being rental properties and I don’t think anyone who is renting is going to be safe in the knowledge that their landlord isn’t going to want them out of the property at anytime in the near future.
This will just drive up rents for those properties on the market.

You could pay the extra money and still find yourself homeless next February. Taking away Section 21 and you are back to the 70s in terms of availability and quality of housing stock to rent.

I'm a reluctant landlord (couldn't sell flat- had to move) and wouldn't dream of doing this to my tenants, even though my costs have gone up, unless it was explicitly allowed in the contract. And even then it would be a bit of negotiation with the tenants.

@Eeksteek you haven’t answered my question of whether you think it’s reasonable for my landlord to raise the rent in the middle of a year long contract?