Page 5 | Rent increase by £300!!! What do I do? Is this normal? Please help!!!!

Lele101 · 2025-01-31T00:47:36+00:00

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.

EasternStandard · 31/01/2025 10:02

Huckyfell · 31/01/2025 07:08

That is one massive increase, we are paying £1k per month on a mortgage on a £800k house that will soon be ours. Seriously start looking at options of maybe buying.
There will be an awful lot of knock on increases this year as labour costs rise with minimum wage and increased NI for employers, it will hit every single sector and increase landlords overheads when it comes to maintenance. A 20+ % increase sounds high to me.

Of course a mortgage can be lower but it's not hard to see how difficult it is for renters to get a deposit when their rents are so high

Or have the affordability for an £800k house, which if you are nearly at the end of paying off you bought a while ago

LBFseBrom · 31/01/2025 10:05

I looked on Rightmove and you are fortunate to have been renting so cheaply! That of course does not help you if you can't afford it but rents for a two bed flat are generally much more.

Have a look around elsewhere and see what you can get that is cheaper. As kong as the area is pleasant and you can get to work without too much hassle you should be OK.

Renting is like that, you're young, you pick up your stuff and move on.

femfemlicious · 31/01/2025 10:17

Oppenovverandout · 31/01/2025 01:39

You have to agree to it, Write back and tell the landlord that you can’t afford to pay that amount. You will probably have to pay some sort of increase but legally you are permitted to negotiate.

You don't have to agree to it if it isn't during a fixed tenancy period.

Jabbabong · 31/01/2025 10:17

It's shit but it does look like you were getting a very good price. If the landlord will not negotiate can you move to a cheaper area?

Yummy98 · 31/01/2025 10:17

ReadingSoManyThreads · 31/01/2025 03:33

Hi @Lele101 what a shocking late night text to be receiving from your Landlord, that's so unprofessional! I'm a LL myself, and that increase is shocking and astronomical. The saying is "little and often", when it comes to LL's discussing rent increases, so say up by £50/mth every 12mths for example. I'm one of the few who rarely increases rents for existing tenants.

I've just taken a look on rightmove, and it depends on the condition of your flat, but the lowest on there is on at £1500, most around the £1600 - £1800 mark, the brand new ones are on for stupid money £2K+. Whilst the LL can raise it by whatever they like (within keeping of any specific rent increase terms in the AST), you can absolutely refuse or negotiate, or take it Tribunal.

So, now, you should reply to your LL and tell them that you cannot afford that increase and either leave it at that or offer a counter increase say to £1500. If you do not accept the increase, then your LL will likely send you a Section 13 notice of rent increase, giving at least one full month's notice. Once you receive that, you have a small amount of time to take it to Tribunal. At Tribunal, they will look at market rents, and decide if the increase is reasonable or not. They will decide if the proposed increase is reasonable and stays, which then you must pay, or if it's too high (looking at current market rents), then they will set a lower rent for you to pay instead. There is the risk that the Tribunal deems that the increase is too low and may then set an even higher rent for you to pay.

So those are your options.

In my personal opinion, as a LL, I'm rather appalled at LL's who just decide to pass on their huge mortgage increase straight onto their tenants. Being a landlord is running a business, providing a service. It's a risky business when we have BTL mortgages and do not own the properties outright. It's a risk we choose to take, and I don't think it's fair that some LL's refuse to absorb any of these huge interest rate hikes themselves. Without wanting to give you my life story, my first rental was my own home, due to having to relocate, the house was in negative equity at the time due to buying in a peak and then experiencing a decline, so had no choice but to let it out. My mortgage was significantly higher than the market rent, then I had maintenance/repairs and insurance to pay on top. So for the first 3 years of being a LL, I was making a loss, but you know what, that's the property game, that was my problem, it wasn't my tenant's fault that I bought in a peak and had high mortgage repayments! I've since gone on to buy BTL's and have long-term tenants in all of them and don't give hideous rent increases like what you've had, because, I always think to myself, if I got a text like you've just had, and suddenly had to find another £300/MONTH, I'd probably have a heart attack. There's NO WAY I would put that on someone. Your LL needs to learn that they will make less money when the interest rates are higher, and shame on them for just passing the full increase onto you.

Sorry for the huge comment, I just get so irked when LL's do these massive rent increases, it's so awful.

You are a good person. Thank you for sharing this. My hope is you are a born again Christian and God will reward you for your deeds.

femfemlicious · 31/01/2025 10:18

LBFseBrom · 31/01/2025 10:05

I looked on Rightmove and you are fortunate to have been renting so cheaply! That of course does not help you if you can't afford it but rents for a two bed flat are generally much more.

Have a look around elsewhere and see what you can get that is cheaper. As kong as the area is pleasant and you can get to work without too much hassle you should be OK.

Renting is like that, you're young, you pick up your stuff and move on.

Yes 1,400 is extremely cheap for a 2 bed in London. 1,700 is cheap also

madamweb · 31/01/2025 10:21

ReadingSoManyThreads · 31/01/2025 03:33

Hi @Lele101 what a shocking late night text to be receiving from your Landlord, that's so unprofessional! I'm a LL myself, and that increase is shocking and astronomical. The saying is "little and often", when it comes to LL's discussing rent increases, so say up by £50/mth every 12mths for example. I'm one of the few who rarely increases rents for existing tenants.

I've just taken a look on rightmove, and it depends on the condition of your flat, but the lowest on there is on at £1500, most around the £1600 - £1800 mark, the brand new ones are on for stupid money £2K+. Whilst the LL can raise it by whatever they like (within keeping of any specific rent increase terms in the AST), you can absolutely refuse or negotiate, or take it Tribunal.

So, now, you should reply to your LL and tell them that you cannot afford that increase and either leave it at that or offer a counter increase say to £1500. If you do not accept the increase, then your LL will likely send you a Section 13 notice of rent increase, giving at least one full month's notice. Once you receive that, you have a small amount of time to take it to Tribunal. At Tribunal, they will look at market rents, and decide if the increase is reasonable or not. They will decide if the proposed increase is reasonable and stays, which then you must pay, or if it's too high (looking at current market rents), then they will set a lower rent for you to pay instead. There is the risk that the Tribunal deems that the increase is too low and may then set an even higher rent for you to pay.

So those are your options.

In my personal opinion, as a LL, I'm rather appalled at LL's who just decide to pass on their huge mortgage increase straight onto their tenants. Being a landlord is running a business, providing a service. It's a risky business when we have BTL mortgages and do not own the properties outright. It's a risk we choose to take, and I don't think it's fair that some LL's refuse to absorb any of these huge interest rate hikes themselves. Without wanting to give you my life story, my first rental was my own home, due to having to relocate, the house was in negative equity at the time due to buying in a peak and then experiencing a decline, so had no choice but to let it out. My mortgage was significantly higher than the market rent, then I had maintenance/repairs and insurance to pay on top. So for the first 3 years of being a LL, I was making a loss, but you know what, that's the property game, that was my problem, it wasn't my tenant's fault that I bought in a peak and had high mortgage repayments! I've since gone on to buy BTL's and have long-term tenants in all of them and don't give hideous rent increases like what you've had, because, I always think to myself, if I got a text like you've just had, and suddenly had to find another £300/MONTH, I'd probably have a heart attack. There's NO WAY I would put that on someone. Your LL needs to learn that they will make less money when the interest rates are higher, and shame on them for just passing the full increase onto you.

Sorry for the huge comment, I just get so irked when LL's do these massive rent increases, it's so awful.

Totally agree. The landlords mortgage isn't and shouldn't be the tenants problem

I am so sorry op,.so many landlords are just grim

Waitingforthecold · 31/01/2025 10:26

I have no advice, but this is beyond infuriating. Is he, an owner of multiple properties, expecting you to feeling sorry for him that his costs have risen?! It’s not your responsibility to pay his mortgage. I’d tell him to get a real fucking job 🙄 renters really need more rights than this, I hope you get it sorted, how awful for you x

Kitchensinktoday · 31/01/2025 10:27

The landlords mortgage isn't and shouldn't be the tenants problem

Whilst I agree in theory, in reality the rent often pays the mortgage. So if one goes up, so does the other. Not a pleasant situation admittedly, but not uncommon

Thegoatliesdownonbroadway · 31/01/2025 10:41

A million immigrants per year just exacerbates the situation.

Princessfluffy · 31/01/2025 10:41

It sucks OP.
Private rentals are a nightmare.

I think it's best to compare your flat to others available locally to get the measure of what the market rent is for similar properties. This will inform what you decide to do next.

DalzielOrNoDalzielAndDontPascoe · 31/01/2025 10:42

I can't stand greedy landlords who think that their tenants should pay every single penny in their goal to end up with a fully paid-for valuable asset in 25 or 30 years.

So what if you have to pay a small proportion towards the monthly mortgage payments yourself? Don't you understand that it's a long-term investment that you have to be patient to reap the massive benefits from, whilst your tenants (who usually have little alternative if they need a home) are already paying the bulk of it for you?

I bet most of these kinds of landlords aren't clamouring to reduce the rent every time the mortgage rate or other costs go down.

Whatwouldyoudonext333 · 31/01/2025 10:44

Huckyfell · 31/01/2025 07:08

That is one massive increase, we are paying £1k per month on a mortgage on a £800k house that will soon be ours. Seriously start looking at options of maybe buying.
There will be an awful lot of knock on increases this year as labour costs rise with minimum wage and increased NI for employers, it will hit every single sector and increase landlords overheads when it comes to maintenance. A 20+ % increase sounds high to me.

Well, I think this post wins the Marie Antoinette ‘Let them eat cake’ award.

Can you see how this is exactly the problem? Are you honestly saying that if you weren’t on the housing ladder right now, you’d be able to walk into a building society, put down a 10% deposit (max) and get a mortgage for 720k? As a pp noted, you’d need to be earning 200k a year.

your mortgage repayments would be more than 4K a month.

Ceecee2422 · 31/01/2025 10:45

Jesus Christ! You could get a 5 bed house where I live for that 😱

Miley1967 · 31/01/2025 10:49

DalzielOrNoDalzielAndDontPascoe · 31/01/2025 10:42

I can't stand greedy landlords who think that their tenants should pay every single penny in their goal to end up with a fully paid-for valuable asset in 25 or 30 years.

So what if you have to pay a small proportion towards the monthly mortgage payments yourself? Don't you understand that it's a long-term investment that you have to be patient to reap the massive benefits from, whilst your tenants (who usually have little alternative if they need a home) are already paying the bulk of it for you?

I bet most of these kinds of landlords aren't clamouring to reduce the rent every time the mortgage rate or other costs go down.

They are just oblivious to the damage that BTL has caused to this country. Those in power that have let this happen and the greedy landlords who jumped on the bandwagon are all to blame. No one gives a toss about anything except themselves these days. I know there have always been landlords but the extent of what this has become is horrifying along with the lack of social housing and right to buy. Families constantly having to move, no security, rents spiralling way above local housing allowance rates. It's not good for society. People need affordable rents and stability.

taxguru · 31/01/2025 10:53

SinkToTheBottomWithYou · 31/01/2025 06:58

All businesses raise their prices when their own costs do increase, supermarkets for ex. Why would LL do differently?

Because the year by year "profit" on the difference between rental income and expenses isn't their only "profit".

They're also likely to make a capital gain between the purchase and sale prices.

They're also likely to be reducing their mortgage by capital repayments.

So when it comes time to sell, they'll not only make a gain due to rising house prices, their mortgage will be a lot smaller than when they first took it out.

Just because their "yearly cashflow" might be tight, or even a loss, doesn't mean they're not still accruing huge future gains.

taxguru · 31/01/2025 10:55

DalzielOrNoDalzielAndDontPascoe · 31/01/2025 10:42

I can't stand greedy landlords who think that their tenants should pay every single penny in their goal to end up with a fully paid-for valuable asset in 25 or 30 years.

So what if you have to pay a small proportion towards the monthly mortgage payments yourself? Don't you understand that it's a long-term investment that you have to be patient to reap the massive benefits from, whilst your tenants (who usually have little alternative if they need a home) are already paying the bulk of it for you?

I bet most of these kinds of landlords aren't clamouring to reduce the rent every time the mortgage rate or other costs go down.

I agree. BTL landlords have screwed housing for "ordinary" people and are contributing to homelessness and people getting into huge debt just for somewhere to rent, and all to feather their own nests. It's criminal that successive governments have not only allowed it to happen but encouraged it.

Queenofthejabs · 31/01/2025 10:55

DalzielOrNoDalzielAndDontPascoe · 31/01/2025 10:42

I can't stand greedy landlords who think that their tenants should pay every single penny in their goal to end up with a fully paid-for valuable asset in 25 or 30 years.

So what if you have to pay a small proportion towards the monthly mortgage payments yourself? Don't you understand that it's a long-term investment that you have to be patient to reap the massive benefits from, whilst your tenants (who usually have little alternative if they need a home) are already paying the bulk of it for you?

I bet most of these kinds of landlords aren't clamouring to reduce the rent every time the mortgage rate or other costs go down.

I guess you can apply that argument to any business, why cover their costs, as they will end up with a valuable business, maybe even bricks and mortar at the end of it. Take supermarkets, maybe they should sell to us all food below cost, cheaply, as those stores are worth a small fortune.

it’s not how business works though, and we do need to recognise private landlords are not providing a charitable service. The only landlords people should feel entitled to low cost rent from is social housing.

SkylarkKitten · 31/01/2025 10:56

madamweb · 31/01/2025 10:21

Totally agree. The landlords mortgage isn't and shouldn't be the tenants problem

I am so sorry op,.so many landlords are just grim

Show quote history

On the flip side, a tenants affordability isn't a landlords problem, especially as the property already appears to be under MV for the area.

A LL - who may well be a pensioner trying to keep afloat - may not wish to fund a tenant who smokes, drinks and gambles.

Isn't that an awfully judgemental thing of me to say? Of course it is!! So why are people happy to think all LL live some exclusive lifestyle when most are just trying to set up a pension pot for themselves because the Gvmt fails us all.

Most landlords are not professional LL. Most have only one investment property. The Gvmt and Media keep that quiet because it's easier to turn tenants against landlords and vice versa. How better to control us than to turn us against each other.

The benefit of renting used to be freedom to move, not worry about repairs, not have huge buildings insurance, not having to decorate and just move when you weren't happy. No mortgage ties, just rent to your affordability. Move if the neighbourhood got bad without the stress of trying to sell.

Now it's a necessity under a struggling housing model. Not enough social stock. Too many nuclear families each needing housing rather than generational housing. Too many people. Huge taxes and ridiculous prices. It needs a huge reform but no one wants to take that risk

It's like the NHS; Broken, and we all suffer the consequences of endless bad decisions

SoapySponge · 31/01/2025 10:56

SharpOpalNewt · 31/01/2025 04:05

I would first see what the rent review clause in the tenancy agreement is first and make them take you to tribunal for the increase.

You are renting, not a bank for the Landlord's lifestyle/gambling/coke habit - who knows? Why would a mortgage go up twice in 16 months? Interest rates were cut twice in 2024.

A 40% increase in 16 months? FUCK OFF.

Edited

"You are renting, not a bank for the Landlord's lifestyle/gambling/coke habit ..."

Actually, that's exactly what you are if you rent.

Bromptotoo · 31/01/2025 10:58

Local Housing Allowance for 2 beds, ie the ceiling on what Universal Credit will pay, is around £1250.00

Huckyfell · 31/01/2025 10:59

EasternStandard · 31/01/2025 10:02

Of course a mortgage can be lower but it's not hard to see how difficult it is for renters to get a deposit when their rents are so high

Or have the affordability for an £800k house, which if you are nearly at the end of paying off you bought a while ago

Show quote history

Yes, on our 3rd mortgage in 30 years, paid 2 off. But I'm just not up to date in the rental side so shouldn't have contributed to this thread. It is big money

Queenofthejabs · 31/01/2025 11:02

madamweb · 31/01/2025 10:21

Totally agree. The landlords mortgage isn't and shouldn't be the tenants problem

I am so sorry op,.so many landlords are just grim

Show quote history

And the tenants affordability should not be the private landlords.

they can put it on the market, offer it up, decide their price, and it is up to the individual if they wish to rent. The landlord can increase the rent annually, if the tenant can no longer afford it, they give notice and leave. They are not entitled to live in a private individuals house for a price they decide they can afford.

I think some people confuse social housing with private landlords and want private landlords to provide the same altruistic service. In fact it feels many feel entitled to it.

it is simply unrealistic. We are no more entitled to that than we are going down Sainsbury’s and buying a loaf of bread for half price as that’s what we can afford.

EasternStandard · 31/01/2025 11:04

@Huckyfell I haven't rented since my mid 20s which was a while ago. I'm shocked by these prices too

But I can see how tough it must be to get ahead, with food, council tax, water bills going up, and rents likely to as well it must feel really hard

Btw I agree on your NI point

Rosiecidar · 31/01/2025 11:06

PontiacFirebird · 31/01/2025 09:37

Those talking about the increase in interest rates to 4.5….Historically 4-5% was the usual
interest rate I think? It was a blip, these ultra low interest rates. If landlording is a business and landlords didn’t factor in contingency for increases in interest rates, they can’t afford to be in business.
Essentially if you have a mortgage you couldn’t cover with your own funds you can’t afford to be a BTL landlord.
Secondly it would be helpful if the government would reverse some of the tax changes that were made to reduce landlord profit, since clearly all that has happened is more and more of them selling up, which has drastically reduced supply and of course increased demand/ price.
The fact that housing is so incredibly precarious in this country is a disgrace and a national emergency.

I agree. Mortgage rate changes are to an extent predictable. Basic accounting is being taxed on a profit by deducting expense from income as a normal business would be. However, it's the tax change to not allowing a mortgage interest payment to be treated as an expense which is the real issue.