Rent increase by £300!!! What do I do? Is this normal? Please help!!!!

[Lele101]

Just got a text from landlord

“mortgage gone up and I’m paying 300 more for service charges and insurance to the council I have no choice but to raise rent by 300”

we live in ilford, Barkingside. It’s a 2 bedroom flat. Currently paying 1400, now he wants 1700.

last increase was 16 months ago. (From 1225 to 1400)

im shocked. Is this normal?? Please advice. I don’t know what to do.

Also, if you're on Facebook, look for tenancy matters uk. They're very helpful on there. Don't bother with citizens advice, they're very good with some things but not, gener, with housing law.

Rent increase should have been on a specific form but can't remember which one.

Edit: I haven't read the whole thread sorry

The answer to this query is simple....what is the current market rate for similar properties to yours currently being rented out for?...this will set the amount your landlord can reasonably raise your rent too, it is also the figure that the rent tribunal service will consider if you choose to go down that road. If your landlord is trying to charge you more than this they won't be able to, if not then they will...

The current high increases in rent are result in the continual tightening of the screws on landlords by sussessive governments in terms of higher taxes and removal of offsetting business costs and more importantly the failure of government to build the required amount of affordable housing for the ever increasing population.
The number of landlords still offering properties to rent is currently decreasing significantly as they sell up and invest their monies in other assets which are easier and less hassle.

These are just the hard cold facts, probably not popular but they are true!

I think you've captured it. The problem with the rental sector is that the unprecedented low interest rates over such a long period until recently has filled the sector with landlords leveraging debt as a means to build equity rather than owning it in the first place. For the last 20 years, I've described myself as an 'unprofessional landlord'. I've should have been calling myself a 'traditional landlord', one who just owns the properties and can take the long view. My longest tenancy is 17 years and she is still there. They move in and stay.

@SharpOpalNewt It could be that their BTL mortgage has been on a fixed rate and now it's not. If landlord has a mortgage on the house they live in, it's likely the mortgage has gone up for that too. It could be the LL has no leeway.

@ConstanceM Yes, I have friends who are paying an additional £600 per month on their residential mortgage, it’s crippling them. It’s definitely not just BTL mortgages.

1700 is the market rate for a 2-bed in Barkingside.

@soupyspoon Well said.

@InDogweRust It sounds as if @m00rfarm’s tenants would be in dire straits if farm sells the property, because they’re paying well below market rent and they won’t be able to find that elsewhere.

I know someone in a similar situation, they’ll have to move in with one of their adult children if their current landlord ever sells.

Why would they do that?

A lot of misinformation here unfortunately, and irrelevant arguing.

The only thing that matters is the market rent in the area for a similar property. If yours is still within that, then the landlord can increase to this amount. You have the option to either pay the increase, or move elsewhere (and have to find another property at market rate).

You can ask the landlord if they would negotiate, but they may say no, and prefer to rent to someone else at market rent.

@PontiacFirebird. Good points. Though not everything can be planned for. Removing interest costs from tax could not have been foreseen. Some LLs may be accidental, in that they had to move for work and were hoping to go back, they may have retired since first buying the house and therefore on less income each month so have to increase rents accordingly. Some LLs may feel responsible to their tenants and be reluctant to sell up because it is removing even more rentals from the rental market. I'm sure there are many situations but I think that your point about LLs who are not businesses, no longer being able to claim interest against tax was a poor decision. It has had dire consequences for renters including increased rents and fewer rental properties available as LLs sell up. I cannot see that it has freed any properties up for first time buyers as was argued at the time. It was simply about getting people to pay more tax.

@MrsPeregrine. Water is an essential for life but you don't see the water companies deciding that it's immoral to make profit and pay huge bonuses to CEOs and shareholders. Why is it just LLs who are vilified in this way?

Have you checked that your DH is getting every benefit he is entitled to. Also see if anyone can help you complete the PIP form.

@madamweb. Do you honestly think that businesses such as supermarkets, garages, builders and others do not put up their charges when their overheads increase? Should everyone be a charity? It's not real life.

Seems to be confusion between’rent’ under Rental Act and service charge an amount in addition to Ground Rent set out in a 125 year residents lease purchased for a premium protected by Landlord & tenant act and Commonhold & Leasehold reform act. 2002.

SC can only be disposed of for maintenance of the property or house and protected in a s 42 trust/client account against FH or man Co creditors.

SC cannot be used to pay down freeholder’s (the landlord ‘s )mortgage and other debts

Don't reply until you get expert advice, from someone who considers your tenancy agreement, your personal circumstances and your history with the landlord. If you agree you can't get out of it.

Rents have gone up enormously but local knowledge would be needed for a view on the fairness of that demand.

Good luck.

These do not compare to a home and being ethical is not being a charity.

Our mortgage went up £550 a month not long ago. We are skint 😏

Difficult to say one way or another.

You could find out what landlord expenses are. The Band on your flat will give you an idea of what council tax is for your flat. You can also find out what energy suppliers charge for a year's service for boiler/electricity/plumbing. You can also work out what white goods cost in your area and if they need maintaining and repairing. You can also look at similar rents.

If you search homes for sale or rent and there is one for sale similar to yours, the listing on the estate agent will usually tell you what you can expect to pay if you were buying similar and what the mortgage would be. It will give an idea of value and the difference between the mortgage and your rent which will include all the taxes, maintenance charges, hire of white goods and cost of the common areas and grounds which make up your rent.

I'd love to say it is outrageous just refuse to pay it, but I live in East London (Stratford) and I have heard of several people who have experienced similar increases, even with council property.
The average rent for 2 bedrooms in East London is around £2,000-2,200 currently-so it looks as though they are looking to bring it line with current pricing.

We were renting in SW London until a year ago. Fixed rate 2 year contract - we always paid on time, created no issues and were very good tenants. LL owned 18 properties and lived overseas. Never fixed anything (flat roof leaking badly, dishwasher never fixed). At the end of the contract we were advised that the rent was going up £900 p/m “to cover the mortgage increase”. There wasn’t a mortgage on it of course. LL just decided to try and get more rent which I suppose is his prerogative. Horrible to be on the receiving end of though. Couldn’t pay it so we’re issued a section 21 eviction notice. I’m not sure if you can dispute an increase in rent after a year if the landlord feels he can get more rent from someone else?

Same here and I am😓 also a "single pringle".

OP with your update given that your household appears to be one pensioner, one person expecting to be living on benefits and one PT cleaner near pension age, do you have to stay in such an expensive and in demand area?
Might be less stressful and long term more secure to move to a cheaper area.
How do you pay now? Income topped up with benefits?

So if the price of baked beans went through the roof, do you think supermarkets would take the hit, or would the price increase get passed onto customers???

So many people on here are pretending they don’t understand basic economics

People saying LL's shouldn't rent at a loss, well they're not as house prices are increasing so they may not cover mortgage payments but they have a house to sell at the end of the day which the tenants don't. I've rented for ten years and dread the day my LL puts the rent up by a huge amount, we are quite a bit under market rate and they would have every right to match what's out there. Thankfully they know we are good tenants and have never missed a payment but I do stay awake at night with the uncertainty of it all.