Landlord wants to increase rent by 20%

[wilderthan]

I moved into a flat about 8 months ago.
I have a one year contract.
I've always paid rent on time.
My landlord has just informed me that he'll like to increase the rent by approximately 20%.
I definitely can't afford it. The new rent will be about 80% of my salary. I'm literally living from pay check to pay check at the moment with my rent taking most of my income

I'm not a regular poster, so not sure this is the right AIBU kind of post.
Please I need advice. What are my rights and how should I respond to them?
I've had a nervous breakdown since the landlord told me this.

Most people can’t afford to live alone in London. If your health needs are so extreme you are eligible for extra benefits, if not, you’ll need to suck it up and houseshare or move out of London, like millions of others so.

With no rent control in my town (England) 300 families bid on ONE council house.

Lets see how many LLs reduce rents when mortgage costs fall shall we?

Bottom line is there is only one solution for the housing crisis and thats council housing, secure tenancies, cheaper rents, so more money in local communities, less poverty.

Ok. So all the landlords decide the interest rates are too high and they no longer want to do it so sell their properties. Then what happens? Those who can’t buy have even less choice about where they live and what they pay!

But that's a council house lots of people bid on not a private rental.

The LL needs the rent to pay the interest on the mortgage not repayment. Very few btl properties are repayment mortgages most are interest only so no the tenant is not paying the LL mortgage, that is a myth.

www.gov.uk/private-renting/rent-increases

Hopefully there's some useful advice here but I'd also recommend speaking to Shelter for some practical advice.

So a "business" model that relies on the LL having to sell the asset to pay off the debt.

Seems wise... not!

Encouraged by greed & Govts that have failed to invest in council housing.

For some landlords you absolutely have to sell the asset to pay off the debt, the idea being that you make a profit on the increase in house prices over the period of time you own it.

Yeah fantastic for the tenant isn't it?

It is awful but it may not be pure greed. Most of us with mortgages are looking at huge increases too.

Sadly a house for life is the luxury of social housing tenants usually, and there should be more of those around yes!

I'm a letting agent as well as a landlord (boo hiss!). Part of my job is negotiating tenancy renewals and rent increases and it's an absolute nightmare at the moment, I feel so sorry for both parties. Rents have gone through the roof round here, partly due to lack of supply but mainly due to the cost of living increases, not least landlord's mortgages. Many of our landlords have seen ludicrous increases to their mortgages that they could never have budgeted for so are being forced to either raise their tenants rent or sell. Most are decent people who absolutely do not want to be doing this to their tenants but have no choice. In most cases we work hard to arrive at a compromise that both parties are comfortable with. I do warn landlords that most tenants will struggle to find alternative affordable accommodation in the current climate so may not move out (because they can't) resulting in a lengthy court battle, so compromise is the best solution for all concerned if at all possible. Of course there are a few greedy landlords who don't have mortgages but still want top market rate and don't care that they will be pricing a good tenant out of their home. Thankfully these types are in the minority. I will soon be remortgaging my rental property and am absolutely dreading it. The sad thing is that many tenants feel forced to accept increases they can't afford and will be getting themselves into debt just to keep a roof over their heads. Not looking forward to the fallout of that 😔

OP, stand your ground and try to come to a compromise, good luck x

As I said, more social housing needs to be built.

The rights and wrongs for the tenant is another discussion. I’m pointing out that it is actually a valid business model to make a profit on the increase in house prices (or not)

I made £20,000 in 17 years, bought at peak prices, sold in a slump. Tenant was a lovely older guy who found a similar property 5 mins away and we had a great relationship. I gave dd £15000 towards her own savings so she is now on the ladder. Don’t regret a thing sorry.

The state of this👆

Even if social housing was increased, it wouldn’t be for the benefit of single people who have no children and work full-time, who want to live alone in one of the most expensive cities in the world. People have to cut their coat according to their cloth.

But it’s not being built. And won’t be built anytime soon. The interest rates are soaring now and landlords need to pay their mortgages too. So unless the government can build loads of social housing in the next few months for the private renters it’s not going to work.

m I think a lot of landlords are going to be selling up in the near future and there will then be less choice for those who need it.

I think we would all look after our children before anyone else to be honest. No chance of my dd getting social housing so I did what I could as most would.

They're not legally permitted to increase it by more than 10%

I m not expecting you or anyone else to regret a thing, sorry.

20k over 17 years thats a crap return, esp considering the risks, stress and the work involved in being a LL, for most.

the rights of the tenant is a valid discussion on this thread, far more so than you getting your DD on the housing ladder tbh.

Yes, and if he hasn't protected the deposit, any S21 eviction notice won't be valid. The courts will throw it out. And there will be other penalties:

https://england.shelter.org.uk/housing_advice/tenancy_deposits/what_to_do_about_an_unprotected_tenancy_deposit

You’ve not thought this through at all. Rental prices are driven by supply and demand (across the economy) not by what an individual landlord has to pay to the bank. Do you think people with no mortgage let their houses out for free? No, they rent it at the highest price they can (typically snd within reason).

Not ‘allowing’ someone to rent out a mortgaged property would decrease the supply of rental properties and push the prices up. The reason prices are high now is because lots of landlords have sold up.

I do agree with you and I would never advise anyone to try buy to let unless they’ve the cash outright, I can’t tell you how relieved I was to get out of it.

I agree the situation is dire for some tenants in private rentals.

Absolutely. I would do the same!