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.

I see this is annoying OP but I'm struggling to understand why you would put yourself through the significant stress and expense of an eviction process for the sake a few months paying one hundred pounds more?
In the general moving costs this is a drop in the bucket and surely not worth the headspace you are giving it.

Do you need to sign up for another 12 months? You will be liable for all rent up to Dec no?

I would agree the extra £100 but ask for a 6 month contract.

Agree about not wanting the stress. Will likely just have to suck it up.

FWIW I think that's the best idea, because the financial liability for rent arrears doesn't necessarily end with being evicted if the landlord asks for a money judgement.
https://www.citizensadvice.org.uk/debt-and-money/rent-arrears/you-are-taken-to-court-for-rent-arrears/#h-money-judgements

I agree £600 isn't worth the fight. But do not sign a 12 month contract. That would be insane in your situation

AFAIK, an AST agreement has to be for at least 6 months, but there is the option of having a break clause for either party.

The other option is a periodic tenancy which simply runs on from the existing one, with or without a rent increase. I think this requires 1 month notice from the tenant but 2 months from the landlord.

Make sure you put a 6 month break clause in OP, because otherwise you would be liable for the 're let' costs and also the rent if it remains unlet- and on an overpriced property that could be for quite a while- we've been there!!

Are these within walking distance of yours? Because otherwise it’s irrelevant.

You cannot challenge increase. They’ve notified you of it. Your options are not to move out or pay it. That’s the rent you pay though as soon as it goes to rolling not your current rate.

Yes it’s completely legal. You either need to give your notice or accept your rent is going up.

Derailing a bit, but our local council is bringing in a ruling from April 2025 that anyone with a second home has to pay double council tax on that property.

This will probably lead to some landlords selling up, especially those who are only in it to make a bit of extra money on an investment, which will no doubt make the rental market even smaller with less choice and higher prices for renters 🤷🏻‍♀️.

Whilst I think Shelter are trying to be helpful to renters, they are volunteers and their word stands for naff all.

We had our last landlord, after 7 years, demand to change our rent by £400 a month over night. We were good tenants, no issues, never late with rent. Our rent started out at £1100, went up after 4 years to £1135, then the year after stayed at that. The year before, year 6, he put it up to £1160.

So to be told he wanted to go from that to £1560 with no warning was a shock. It wasn't in line with rents in our area and our home was small and, to be frank, he did nothing to it except the gas safety check. There was only smoke alarms because we put them up ourselves, and we found out after we moved out he was breaking the law by not having an annual electrical safety check either.

We asked him to reconsider based on him having spent nothing on maintenance and us being good tenants. He declined and said basically pay up or eff off.

We spoke to shelter who were very much on the we have rights, he can't do that, no justification.

Turned out he could, he would and when we argued more, he served us notice to quit. He also told the council we declined to pay a rent increase. Council agreed it was reasonable after the duration of our tenancy. So we are now classed as making ourselves homeless.

We moved into a home above where we got a job, which has now ended, and left us high and dry. We are screwed. Council still doesn't want to know.

We are now desperately trying to find another live in job or alternative accomodation. I wish we had of just ignored bloody Shelter and found the money somehow.

@AnneValentine I read it as a section 21 which is why I asked! But no, it's a section 13

a section 13 is a notice of rent increase. You can challenge it but realistically you’re unlikely to be successful. The properties you’ve shared are not like for like. A terrace property suggests quite a different area from detached property open space.

The reality is your rent is almost certainly going to go up and you have the choice to pay or leave. And even if you don’t leave and they service notice the rent increase will apply.

Yes a terraced area is very different - much cheaper, cramped and no outdoor space!!
I spoke to a neighbour today, in the end of terrace property (same as ours but end). He pays £950 a month...
We should never have agreed to this in the first place but we had exchanged and were desperate. At least we know it's not for much longer.
Thanks for your advice

The rent increase is not excessive so your tribunal would fail.
the original rent may have been excessive but you agreed it and so you won’t win.

don’t take the risk of fucking up your credit history right as you’re about to move/mortgage

No I wouldn't do anything that would mess anything up! We managed to buy our new house in cash.
Sadly we can't move until GCSEs are over, and then we are off 😀

The original rent is beyond excessive, but we had no choice as we had exchanged

I really feel for you, but your landlord probably has a mortgage (which has rocketed) and s/he is likely being clobbered by George Osborne’s tenant tax which s/he has to pass on to you. (S24)

The increase in your rent and the tax on your landlord’s (fake) profit will help those that cannot pay rent, to be housed. So it is not all bad.

Don't sign another contract, let the rolling contract take effect naturally. You don't have to sign a new one and they can't force you.

It does mean they could give you 2 months notice but they can't force you out until they go through court etc...and that would take more than 4 months anyway so you're safe.

As for the rent increase, sadly your mistake was to agree to it in the first place. If it was the only one available, then it's a matter of supply and demand. You accepted it after all and didn't heed to. He is an opportunist, but nothing says he can't be. You'll have to accept the increase or challenge which probably end up more in court fees than the extra £600 anyway.

Has the rent increase been sent as an official section 13?
You can go to a rent tribunal to decide if the increase is unfair and not comparable to the local market area rates.
You must continue paying the Current rent if £1500. The tag agent will then state you are in arrears.
Only a tenant or court can end a tenancy agreement. IF You do not sign or pay tge increase the contract will continue as rolling periodic (monthly) whilst the agent/ landlord issue a section 21 eviction notice.
This is 2 months, then they apply for court proceedings, most courts still have a delay in hearing cases.
They cannot issue a s8 until you are 2+ montgs in arrears.
The only caveat is they can recover court costs from the deposit. This is usually a few hundred £s

All fixed term ASTs become periodic ASTs when the term ends if no new fixed term is agreed, under law.

S13 rent increases and the ability to challenge under s14 only apply where there is no contractual rent increase clause so there's no guarantee if the landlord serves a s13 compliant rent increase notice that the tribunal will agree it has jurisdiction to hear it anyway. But trubunals are cheap and you could represent yourself.

You could say to the landlord we cannot afford the increase so unless we can agree £X, we will serve our own NTQ (notice to quit) and looking at the market you'll never get what you're asking - and see what happens. A threat to serve an NTQ isnt the same as serving one!

But he has you over a barrel.

You'd be crazy to not agree and refuse to pay the increase as it could impact your credit rating and your mortgage if he acted quickly before you moved (he could make a money claim against you leading to a CCj!).

To be honest, its probably cheaper to stick all your stuff in storage and rent a holiday caravan or cottage for the few months in between. Why such a delay to move?