Challenging rent increase - way above market value already

[Nowanextraone]

Hi all, I am really hoping someone can help. We have rented a small, 3 bedroom mid-terraced property for the last year in the East of England for £1500 a month 🤯 We sold our house as we are relocating this year and wanted the money free to buy. The landlord/estate agent knew our plans. As we had exchanged, it was the only property in the area, and they wouldn't budge on the £1500 pcm so we had no choice but to take it. However, over the last year we have seen multiple houses come up for rent in the area at £1500, but 4 bed detached houses with big gardens, a garage etc.

Our tenancy agreement ends in Feb and we had an email saying they want to offer us another assured 12 months, but with a rental increase to £1600. This would take our small mid terraced property £250 a month more than a 4 bedroom detached bungalow 2 roads down which is up for £1350pcm.

I contacted the estate agent and said that as per our contract, due to our moving plans this summer (we have already bought a house) that we would like to be on a rolling contract, but we do not agree to the rent increase. I attached multiple houses in the area to show how inflated the rent for our house is.

The estate agent replied and said
"!As per the signed tenancy agreement, clause 10.2, the rent can be reviewed in line with the market and RPI. I have copied the clause below for reference.

10.2 Rent review
10.2.1 It is agreed that the rent as defined in this Agreement will be reviewed on the anniversary of this Tenancy and upon each subsequent anniversary in line with the change in the Retail Prices Index (RPI) for the previous 12 months and the rent varied accordingly either by way of an upward or downward adjustment.'.

However, I have provided evidence of the ridiculous price we already pay, so surely market value should come into play here.
I looked on Shelter to see how we can challenge this by going to tribunal, which we will, but I am just wondering if it means that they can try to evict us now? We only need the house until July. Our daughter is doing her GCSEs. We were offered another 12 months assured tenancy, so surely any judge would see that to kick us out in spite for disagreeing with above rental value would be unfair?

We haven't rented since we were in our 20s, so this is all a bit of an eye opener for us.

Please advise.

It's awful, but if that's what they are offering it at for rent then your options are pay up and stay, keep paying the current amount and go through legal measures probably leading to them kicking you out or move to one of the cheaper rentals. They aren't going to change their mind because of your view of market value.

Would they be able to kick us out between the end of Feb and July though?
I feel so miserable. We can ill afford more rent

They have to take action to end the agreement. This would be via the section 21 process. This would give you notice of 2 months. After that if you didn’t move out they would be able to start proceedings to evict you. Which could be done in weeks or months.

Your appeal will deal with the rent increase. Which is what about 8%. I’d say above RPI which has fallen to 5% but was upwards of 10% over the past year. I’m not sure you can appeal the agreed rent. And market value is usually what someone agreed to pay.

Can you delay the issuing of a section 21 by a few months through negotiations on the increase. If you can get to April without the notice then id say you have a clear run to July before being evicted.

Your landlord is going to spend way more than 600 (6 months rent increase) to evict you. But he has no guarantees you will vacate in July.

Thanks for this.
Yes I know I can't appeal our current rent as as agreed to that, but it is the increase that is the issue. Our house is a TINY mid terrace house, a quick rightmove search shows how we were paying too much.

If they did go to court to evict us, would a judge kick out a family who is moving in July (definitely as we already own a new house but the other end of the country)

You don't say where in the East of England. Cambridge and surrounding area is horrendously expensive. No better in Harlow and Stortford.

One guide to market rents is the amount allowed for benefit claimants under Local Housing Allowance. These have been held down since the pandemic but in 2024/5 they will be revalorised to the 30th centile of market rates in their respective areas. In other words they represent the bottom third of market rents.

Indicative 3 bed figures for Stortford, Cambridge etc are in the £1100-£1250 ball park.

Doesn't take much for a nice place in a nice part of the district to be £1600 plus.

https://www.gov.uk/government/statistics/local-housing-allowance-indicative-rates-for-2024-to-2025/indicative-local-housing-allowance-rates-for-2024-to-2025

If you have a realistic chance of a 4 bed for less then call their bluff (if they are bluffing) then go for it. Just re-letting with a month or two void will cost them a lot more than meeting you half way - for example.

This is the LHA for our area..Also attached are properties for less than ours that are literally 4X the size
A quick rightmove search shows what is available. Ours is a tiny mid terrace.

If other housing is bigger better and cheaper they only reason they must be doing this is because they know you will want to stay put. If they put that out on the market who is going move In when other houses are bigger and cheaper in your road? Could call their bluff and say unless they can agree to stay the same you will move at end of tenancy.

That is what I would do.

That.

Or their client is a grasping b'stard.

I would try to negotiate for a lower increase because I think you'd struggle to find another rental for 5 months only (March to July). And because 5 months is considered a short term rental you may find that the asking rent will be higher anyway.

If you know for certain the date you want to move, your best bet is to negotiate a move out date with your current landlord. Finding a short-term rental is stressful and expensive. Going to court will be extremely stressful and put an eviction on your record should you ever need to rent again. Your landlord will want to avoid the expense and hassle of evicting you.

you may not make much progress on the rent increase. They can always argue that your unit has features another lacks. What you really need is a contract that is less than 12 months.

Hi, yes, they know we won't be planning to move as we relocate so soon.

I don't want us to be evicted. Surely no court would evict a family with 3 children when they are moving in July anyway? And surely it would take a long time for the eviction to happen anyway?

I cannot see that a rent tribunal would go in their favour as it is clearly very overpriced.

OP, unless the law has changed, after your initial lease you go on to a rolling lease. No more paperwork needs to be done and you can end the lease after one month notice. You LL has to give you 2 months notice. I'm not sure about the increase in rental part of the situation.

Agencies obviously don't want you to know about this. https://england.shelter.org.uk/housing_advice/private_renting/assured_shorthold_tenancies_with_private_landlords

Provided the Landlord doesn't mess up with paperwork there's no defence to a Section 21 notice; the Judge would have no option but to grant an order.

The government had committed to end these so called 'no fault' evictions but have resiled from doing so.

I suspect that, in practice, bearing in mind the S21 has to give two months notice and that you'll then wait for (a) a court date and (b) an Bailiff's appointment for eviction you'd have enough time to move to your new place before being on the streets.

If you've a strong nerve that course, or the threat you'd sit tight until the Bailiff was at the door, might be enough to keep you there anyway.

Shelter, see the link re S21, are always a good source of advice for housing matters.

EDIT: I don't think Rent Tribunals are a 'thing' in current shorthold lets.

Thank you. Realistically can they evict us between end of Feb and July? Even if they give us notice, can we ignore it?
That's my concern. We would continue paying the current rent and challenge the rent increase.

Arghh I feel so sorry for people stuck renting. This has really opened my eyes

Thanks. Surely a court would consider that we are moving in July anyway so would make them wait until then?

Just had this email from the estate agent

'If you are set on wanting a periodic tenancy, it would be a rent increase to £1600 pcm served with a section 13 notice.'

Is that even legal?? Our contract said we can have a rolling contract when the fixed term ends

I agree with @Bromptotoo :

Provided the Landlord doesn't mess up with paperwork there's no defence to a Section 21 notice; the Judge would have no option but to grant an order

Your personal circumstances do not affect this.

We are in an identical situation with waiting to buy again OP only other rental properties around here are more expensive than ours (and scarce) so the increase is bitter but justified. We're just keeping our heads down until we can move.

While this isn't legal advice, I'd advise you to consider what the extra £500-ish between now and July in increased rent is worth vs a quiet life and potentially having to pay that money to the landlord via small claims court later down the line (plus costs) and getting a CCJ as well.

@Nowanextraone I don't think the court has much latitude. The whole point of S21 was to address criticism in old Landlord and Tenant stuff that it was far too difficult for a Landlord to recover against a wilful and determined tenant.

However, I'm not sure they could actually get their ducks lined up fast enough for you to be evicted by July.

Realistically is you paying an additional £600 worth all the stress to you when you know your daughter has exams.

Also if you were to leave at the end of the tenancy and move elsewhere short term the costs of removal would be more than the £600. (ie additional 6 month's rent).

Do you also want to be liable for all the court fees and costs of them having to issue eviction proceedings which will be your liability should you fail to leave when the s21 notice expires.

So really it is where do you want to spend the extra money that causes the least amount of stress?

600 on rent
More than 600 on removal costs if leaving to rent elsewhere.
Staying put and paying rent and court fees and costs whilst worrying about daughter doing exams and potentially not being able to find a short term rental due to bad reference from current landlord due to eviction.

Our contract said we can have a rolling contract when the fixed term ends

Can you quote the actual clause - I'm wondering whether you may have misunderstood.

They could however issue proceedings with the immediate effect that OP becomes liable for costs.

If you do want to go down the legal route OP apparently there's a process to challenge it. This article is written geared towards landlords and has some info about 2/3 of the way down if you can get over the wording ("Your pathway to higher rental income and legal compliance." 🤢)
https://blog.openrent.co.uk/how-to-increase-the-rent-by-serving-a-section-13-notice/#rent-increase-section-13