To be wary of what the letting agent is trying to bamboozle me with

[moomoo1967]

Sorry a little long, posting here for traffic as deadline is tomorrow.
I will try to be as succinct as possible. We moved I'm this house 26th August 2020
2 bed terrace on outskirts of town with garden
Assured Shorthold Tenancy
Rent 2020 £825
Rent 2021 £825
Rent 2022 £265
Rent 2023 £900
Just received new Rent proposal £75 per month increase, which is 8.3%.
Checked agreement dated 26th August 2020, under Rent increase it states the following:
[START]
The Landlord can increase the rent every twelve months on the anniversary of the date on which the Tenancy began("the rent in increase date"). The increase is to be calculated according to the rise in Retail Price Index from the start of the Tenancy or the anniversary date whichever is the later, subject to a minimum of 2% and a maximum increase of 5% . To avoid doubt, if the Landlord does not increase the rent in any year, this will not affect the Landlords rights to in increase the rent in subsequent years
[FINISH]
I emailed the letting agent back asking for clarification of why they were wanting to increase the rent by 8.3% when the maximum stated is 5%.
Each subsequent extension refers back to the original agreement dated 26th August 2020.
They replied with;
[START]
Thanks for your reply. The contract sets out the rent increase if no new fixed term can be agreed. This would result in the tenancy going onto a periodic basis where you can give 1 month’s notice and the landlord would need to give you 2 months' notice to vacate. If you wish to go to a periodic tenancy we will need to check that the landlord’s mortgage allows this type of tenancy.

The offer of a new fixed term is at this higher rental amount however it provides the security of tenure for you at a rental rate that is still below the market rent for this property.
[FINISH]

Can anyone help ? Are they trying to bamboozle me or are they correct?
And I appreciate rents are high but just don't want to be taken for a fool

I don’t understand. If the maximum is 5%, then the proposed 8.3% must be incorrect. Are they offering you a brand new tenancy agreement or just putting up the rent?

What was the original term of the lease?

beecucumber
I am just as confused each previous year has been a extension. This was the original email :
Further to discussions with your landlord we would be pleased to offer you the option of extending your tenancy which is due for renewal on the 25th August 2024. We are offering a further 12 month fixed term.

We are proposing that the rent payments increase by £75.00 to £975.00 pcm in line with the market and the clause in your tenancy agreement. All other terms of your tenancy will remain the same.
We require a fixed term tenancy to be in-place at all times and will need your decision by the 5th July 2024 please, so that we can prepare the relevant paperwork.
If for any reason, your circumstances prevent you from signing a new fixed term agreement, it is imperative that you contact me to discuss as soon as possible.
Please be aware that we will require a minimum of one month’s notice in writing before the monthly rent due date if you wish to terminate your tenancy at the end of the agreement

Curious George -which part ? it is about 20 pages long and is an Assured Shorthold Tenancy

Sorry one year from 26th August 2020 then each subsequent year has been an extension

May I suggest you contact Shelter or CAB to get professional advice. Good luck.

Thanks I can try but there is no way I'll get through before the end of tomorrow. Researching on Shelter currently

They’re saying that the cap on the rent increase only applies to a periodic tenancy.

It doesn’t say that. The rent increase clause doesn’t mention any type of tenancy at all.

Unless it’s in a section headed ‘Periodic Tenancy’ or something like that?

I'll check but I think the heading was "rent increase"

The specific clause is 6.1 in my OP, doesn't mention fixed term

So I would therefore ask them ‘Can you point me to the clause in the contract that states the rent increase provisions in clause 6.1 only apply to a periodic tenancy?’

Agent talking shit. You don’t have to agree to that percentage of increase. My tenancy says the renter has to agree. Go back with however much a 5% increase is and say this is the max you have to pay under the AST.

I can't see anything in tenancy saying renter must agree but am getting a lawyer colleague to look over it today, didn't realise he had lawyer training but not in the rental market

Are you on a periodic tenancy or entering in to a new AST for eg a year? If the former, the rent increase clause you cited applies. If the latter, they can charge whatever rent they want under the new AST. You however do not need to sign the new lease and be bound by that condition. If you do not wish to enter into the new AST then tell the agent and they can take the necessary steps to serve notice etc.