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?

@originstory I may be going a bit against the grain here but is there something you may negotiate in exchange for this rent increase? If I’m reading correctly you are 1/2 way through a fixed 12 month agreement.

On the whole 5% isn’t a terrible increase. If you don’t have to agree to it now contractually, it may be worth the discussion to get him to acknowledge that fact, but you’d be willing to discuss new terms. So maybe a 3% increase and a 6 month extension or lock into that rent for a new period of time or some other concession.. allowing pets, parking, something else that’s relevant.

There was a lot of availability and good housing stock in the 70s due to council houses. If there are fewer landlords because of section 21, then house prices will drop and more people will be able to buy houses rather than renting.

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

It's a thread about a landlord potentially breaking a contract, so it's hardly left field!

To try to get back on track a little, we're not accidental landlords, we bought properties, improved on them and rented them, most aren't mortgaged. We could sell, but they are people's homes. If those people ever wanted to buy the property, it would most likely be fine with us.
However, our rents are fair, we could easily charge a lot more but don't, and we would listen if a tenant had issues paying. We specifically mentioned this during lockdown in case any tenants were furloughed, and would have given a short payment holiday without the need to pay back if they were in a desperate situation. The point I'm trying to make is even people who don't rely on the income and are landlords through choice aren't automatically horrible, unfeeling people. Maybe this landlord will be the same as us and reconsider the increase - I think the best course of action is to talk to him. Maybe it will be resolved, maybe he will be adamant the rent is going up - in which case it'd be good to speak to Citizens Advice, I think.

What happens to those homes that are 'no longer going to be rental properties'?

Do they vanish?

No. I’m pointing out he is a real person, and may not have a choice. I wouldn’t (and haven’t. But look at my standard of living. Would you blame me if I did?)

Would you prefer your landlord sold your house, and the next landlord increased it? Or evicted you first and then sold your house? Or that your house was repossessed, which are his likely other options. Should landlords overcharge in the first place, so they can have large cash reserves to cover unforeseen changes? They are my options, and I hate all of them.

I don’t think there is a good solution. I loathe renting now, because of how revered landlords are (strangely, no one who actually knows me thinks I’m any of these awful things!) and I’m glad I’m getting out of it. I’ve never loved it (I was on board with the first one, but not after), and always planned to sell as my child got older. They always tell you not to make any big decisions after a bereavement, but I wish I’d just sold up. I wanted to pass at least some of my husbands legacy to his child.

@Loics you sound lovely people. We rent nice houses , keep them pristine and have had a total mix of landlords- from really lovely people who were abroad to a total very rich posh arsehole who let himself into our house with no notice because I was4 days late paying. (A payday mix up ) -

It’s only £40 so I would just pay it.

Hardly the same situation!

because of how revered landlords are

are they?

If you are on a fixed-rate mortgage for a year, of course, you should refuse to pay any proposed increase.

It really makes me laugh when posters start shouting how things are 'illegal'.

If you're in England, for a fixed-term tenancy your landlord can only increase the rent if you agree.
The only thing 'fixed' about your tenancy agreement is the minimum term (12 months) everything is open for discussion and its not illegal to start a discussion
If you do not agree, the rent can only be increased when the fixed term ends which he'll probably do or he'll ask you to leave and increase it for the next tenant who comes along.

It's unfortunate that by not agreeing to the increase you are putting yourself at risk of being serviced notice.

I would personally speak to the Landlord and explain how you can't afford the increase as you too are being stretched by the cost of living. If you feel he's disgruntled and you want to stay then offer a smaller increase and take it from there.
Landlords do know the value of a good tenant (sensible ones do anyway).

Good luck OP

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

operating illegally seems to be ignored by those on mn, LTB though is used if a man leaves the lav seat up

@MochaHoldTheMilkAndCoffee It is illegal to force a rent increase in a fixed tenancy. You can ask if someone will pay more, but no one who is not being coerced is going to agree to that.

This is so unreasonable of your landlord and I'm shocked at the people advising you to accept the raise or meet him halfway. You signed a contract and he needs to honour that - the fact he's a landlord that carries out repairs etc shouldn't be an exception, it should be the rule!

And those saying that you should sympathize with him to help cover rises to cost of living - who's going to help OP cover her additional costs of living, especially when she's paying out additional rent outside of what she's contracted to pay. If the OP approached the landlord and asked for a £40 monthly decrease to her rent based on increasing bills you can sure as hell bet the LL would come back with a big fat no.

@Eeksteek

My Dad died when I was 7. My mother didn't feel the need to prevent others from buying their own homes by buying up properties to rent out.

No. I’m pointing out he is a real person, and may not have a choice. I wouldn’t (and haven’t. But look at my standard of living. Would you blame me if I did?)

But you do have choices and yes I would blame you. You are profiting from others needing a place to live. You can get a job! You are almost certainly asset rich, cash poor. No one should feel sorry for you.

As I have stated up the thread I am also a landlord. I am under no illusions, I am not doing my tenant a favour. They are paying my mortgage and since buying the house it has almost doubled in value. Yes they have a nice place to live but I'm sure they would rather pay the same mortgage as I do and have the security that comes with owning a property.

@Eeksteek

When you say that if you sell you'll make another family homeless, do you mean that you think when you sell a property it vanishes into thin air?

As I have stated up the thread I am also a landlord. I am under no illusions, I am not doing my tenant a favour. They are paying my mortgage and since buying the house it has almost doubled in value. Yes they have a nice place to live but I'm sure they would rather pay the same mortgage as I do and have the security that comes with owning a property.

Finally a landlord who doesn't consider it to be charity to rent out a property.

Don’t worry, I’m completely used to everyone hating landlords. Oddly, no one who actually knows me thinks I’m a cow, though. Funny that.

No, they aren’t mortgage free. My husband did not believe in pensions. He invested in property. If I got his pension, and I was struggling to live on that, would you care where it was invested? If it was invested in energy companies, say? (Presumably most of them are)

As for ‘just sell one when the tenancy is due’ that’s exactly what I’m holding out for (although I’m still being advised not to) It’s not exactly a fast process, selling houses. I’ve been strongly advised to keep them by every professional I’ve spoken to, at every stage. I wanted to sell the lot and am bitterly regretting taking the advice of absolutely everyone who said I shouldn’t, and I could ‘just’ remortgage. I’ve been trying to do exactly that for five years!

Unfortunately any kind of tax like that would be extremely unpopular with the foreign investors that London is flooded with

Do you mean the non doms who aren't liable for tax here? They won't care.

and I could ‘just’ remortgage. I’ve been trying to do exactly that for five years!

Why can't you remortgage?

I'm a landlord and this is something I absolutely would not do. Not least because if you have a fixed term the rent cannot be raised during the fixed term without your consent and it's very naughty to try to do this.

However, it is very difficult to find rental properties at the moment, and rents are increasing rapidly in the south east and probably other areas. In your position I would have a pragmatic discussion with the landlord along the lines of I am very happy with the property, I don't want to move, you shouldn't really be attempting to raise the rent during the fixed term, but I want to stay. Would you accept a £20 raise and then to reassess the rent at the end of the fixed term? See what he says. If he says no, then you can either say no, and maybe expect a s21 at the end of the year effective from the end of the fixed term, or say ok, I'll pay the increase.

Communication is key. But I will say I wish landlords wouldn't try this sort of thing, it's very poor and it pisses other landlords off as well as the tenant.

so let’s not dive too deeply into the world of fantasy.

The Tory government have penalised landlords more than any other government in recent history.

@Eeksteek I do understand your reasoning but I honestly think you can make your life far more comfortable by keeping one house for a legacy , I'm pretty sure your H wouldn't have wanted you to struggle like this and nor would your child if they knew the full extent . You have to put yourself first - so long as you are fair with tenants and I say that as a tenant .