Unable to pay rent increase

[GoAgainstNicki]

I wonder if anyone is able to give some advice on what the next steps will be?

I had an email from the estate agents a couple of weeks ago to say that the Landlord is requesting a rent increase from 1180 to 1500 a month. He wanted this done effective immediately but as my tenancy doesn’t say anything about allowing rent increases, he’ll have to wait until my tenancy is finished this summer.

If I’m unable to pay the rent increase which I totally can’t, what happens next? I already bid for council properties and I know the council won’t help me at all unless I’ve been served with a section 21 notice. Do I just ask the Landlord to start the eviction process and still pay 1180 every month?

The Landlord isn’t open to negotiation at all which is quite silly because it’s probably not worth going to court over just to get an eviction notice but hey, ho! Thanks for any advice given:)

You can’t have rent control without mortgage control.

Surely any right minded person would be in favour of rent control. But no system can effectively force a landlord to control rents when he has no control over his mortgage payments. His only ‘control’ then would be to sell the property, with many more facing eviction.

In much the same way, everything has a value. If the market value of your rental property rises, you’re lucky if the landlord decides to ‘play nice’ and keep your rent down. If I had a rental property used as somebody’s home, that’s what I’d do where possible.

But realistically, people can ‘sell’ their service or asset for whatever it’s worth. You wouldn’t ask somebody selling a car to sell it for much less than it was worth because you want to buy it but you can’t afford it. And you wouldn’t sit in the car refusing to move because it’s out of your price range.

Ultimately, when rents are out of control, either the tax payer has to foot the bill via a raise in the cap on housing allowance, or people have to buy what they can afford.

With people’s homes on the line, as a taxpayer I’d support plugging the gap rather than the upheaval caused to families, however the taxpayer cannot be expected to pay when landlords see this as an easy way to bleed the public purse.

The answer is secure tenancies on local authority housing, however it’s far more convenient to blame and shame landlords, and this being the case, we can expect an increase in the number of landlords quitting, and this a decrease in the availability of rental accommodation.

It’s a timebomb of epic proportions.

As much as I don't agree with upping rent over 10% a year, I'd not run at a loss either. So rent control wouldn't work in the current climate with private rentals unless they was for new btl or mortgage free landlords. My rental is over 15 years old so my buffer is much bigger on going near running at loss. However I wouldn't run it as a loss. I have a mortgage on in and anything that risky would be insane. Who would choose a CCJ? Not every landlord owns. I do feel very uneasy that things always seem to be headed to private landlords houses seen as state assets. It's not possible. The bank owns my house. That's alway forefront of my mind. Much like a Tennant, if I couldn't make the mortgage rise its no brained game over. A short term hit of a few years maybe but who knows?

I work in a local authority and we are using private landlords more and more for social housing. If LL were to start pulling out because they can’t afford their mortgages we will be in trouble.

ultimately Private LL are businesses. No different to Next who have just increased all of their prices by 8%. Why should private LL make a loss - they are not a charity.

Another failing in this country is the lack of social housing and investment. I’m starting to wonder what the U.K. does have going for it now.

@Jabiru @IneedanewTV in the nicest way possible, what are you talking about?

Where have I said that I expect the LL to take a loss and where did I suggest that he’s running a charity?

I’ve asked if anyone knows what happens next and I’ve also asked for peoples experiences. Why don’t you both start your own thread if you’re not actually here to respond to anything I’ve said?

Same here!
Why people are advising her to avoid paying until get evicted which can take a year!

What about landlord? Not everyone is as bad as media projects them. May be his/her mortgage gone up and to remortgage he will need certain rent otherwise he will lose his property repossessed.

As a landlord

-My mortgage doubled.
-Rental house has high maintenance due to laziness or tenants have thinking of "Its not mine to clean or do small maintenance "
-EPC work requires about 20/25k for updates including new boiler, windows, roof/loft insulation and outside wall insulation.

Keep in mind that whatever you pay will not go to landlord's pocket, it will have mortgage, insurance, agents fees, maintenance, income tax.

Rent increases in the UK are meant to be fair and reasonable - there is a small amount of protection for tenants. I think fair and reasonable is usually seen as about RPI + 10%. I think this would come out as a new rent of 1427.

Would that be affordable for you? If so, perhaps you could offer that as a compromise.

There is also a possibility to take a landlord to a tribunal over rent increases and they would decide if it was fair. Citizen's advice have some useful information on this.

However, obviously if you are able to refuse the rent increase, the landlord will probably evict you as soon as possible via section 21.

But there is some legal provision to prevent really extreme rent increases.

What sort of advice are you looking for? Many posters have told you the facts but you just don't like them. Whilst we appreciate its difficult having a child with medical needs, but that is irrelevant to your rent increase. Landlord has increased rent, which he is entitled to do. You now can't afford it. So you will have to move. Presumably you are looking at other places already? What other way of looking at it is there?

There's no LHA rate for £1346 for a one bedroomed flat?

You might end up having to move anyway. If he’s not willing to negotiate, it may be because the mortgage has increased he needs the extra rent to cover it. Either way, I’d start weighing up your options because he evicts you or sells the house. Will the council help if he puts the flat on the market?

Have you researched local housing associations? In my experience, people in situations like yourself who very clearly need to be housed appropriately have much more luck with housing associations rather than the council. Several clients of mine have been housed via HA, and relatively quickly.

No one’s advised me to stop paying rent. I’ll carry on paying 1180 as I’ll have a rolling contract so my rent technically stays the same.

Maybe you haven’t read the full thread or don’t know how the council operate, but the council will not help anyone unless they’ve been served with a section 21 notice. If I go to the council (which I already have done) to say that I can’t afford the rent increase, they literally tell you to stay there until you get evicted. Otherwise you’ve made yourself voluntarily homeless and the council won’t help you.

I’m on UC, have no money for a deposit and many, MANY landlords will not accept someone on UC. What exactly do you want me to do?

Erm, no. Just because the Landlord has increased the rent amount, if you know your rights (which you clearly don’t), you don’t have to just up and leave when you literally can’t afford too.

As I and a few other posters have said, most landlords will not accept someone on UC. Do you know how hard it is to find somewhere that will accept UC? I was placed here via the council when I was homeless. The council will only help once you’ve been served with a section 21 notice otherwise you’ve made yourself internationally homeless.

I’m not going to make myself and two children homeless just because Oblomov23 has told me that I have to move. Thank God for Shelter and Citizens Advice because people like you really don’t know what you’re talking about!

I have a two bedroom entitlement

Nope. The landlord themselves can contact the council to say they want the property back and the tenant needs to leave. They can say that they’re selling the property. They can say all these things.

The council will not help you UNLESS you’ve been served with a section 21 notice. That’s it

Yep I’ve contacted most HA’s but they no longer have external registers. All available properties are shown on the council’s housing register. So the only way to get a HA will be by bidding each week, which I already do

It’s not the landlord’s right to have all of their mortgage covered or associated costs - they’ll own a property and get tax breaks. This is why fair rents are needed and social housing - the situation is impossible for the low paid, unemployed and for all families - especially single parents.
The lucky ones who bought years ago or inherit can live off the backs of the poor and the state (all of us) subsidises the landlords as much as it does those on benefits.

I’m more than happy to negotiate but he isn’t

Unfortunately, its his property. He doesnt have to negotiate anything. If he can get 1500 a month from someone else, why shouldnt he?

In your situation I would go to your local housing team, with the rent increase proposal letter and discuss options with them. If they placed you in this private rental initially they have some duty to support you now, I believe. This may be to improve your bidding band or discretionary top up on the rental figure. Explore options with them first.

£1500 is still quite cheap for a 2-bed flat in inner London!

£1600-£1750 is typical for somewhere quite grotty in my borough which is Lewisham.

That £1346 Local Housing Allowance was set three years ago back in March 2020 and rents have risen a lot since then.

In fact there aren’t even any 2-bed flats for as cheap as £1500 in the whole borough of
Lewisham.

Not sure which borough you are in, but the relevance is that the landlord will be able to
show that the proposed rent increase is fair and reasonable.

Thank you very much for most comments!

To reiterate one last time, I was placed here via the council as I was homeless for a year. The council paid the deposit and help me set up my UC as I was on maternity leave at the time.

As the council have previously housed me, it’s quite clear from my situation that I’m not able to afford a deposit. I’m also not able to afford a rent amount higher than whatever the LHA for that property. I’ll say this one more time for the people in the back I’m on UC. Yes I work part time but my rent is paid by UC. Many, many landlords do not accept UC for various different reasons.

So the people telling me to ‘just move’ clearly don’t understand the situation that I’m in. I’ve spoken with Shelter and they’ve advised me to see if the council can help any further with the proposed rent increase. If they can’t, then carry on paying 1180 whilst getting the landlord to start the eviction process. This is the only way the council will help with housing me once again.

I’ll not make myself voluntarily homeless just because a few people on MN are telling me too. I’ll do what’s best for my family in this situation. That’ll be the last comment from me.

I rent a one bedroom flat. I have a LHA of a two bedroom flat because there’s myself and two kids. £1500 for a one bedroom flat is not the norm here

The thing is, Keeble, it may not be ‘the landlords right’ to have his expenses covered.

But he owns the property and that’s the bottom line. He can do whatever the hell he likes, including not renting to people on UC.

And FWIW I think the situation is unbelievably shit for the OP and for all the other families in this position. However I also think there’s a theme of ‘he won’t negotiate’ and ‘I don’t have to just up and leave.’

Whilst both statements are arguably true, I think that the obvious point is that, ultimately, the OP unfortunately has no real choice, no expectation that she can bargain the landlord down on price or stay in a property that she cannot afford.

It would be in everyone’s best interests if the council agreed discretionary payments to plug the gap between current and proposed rent (and I’d be interested to know whether they agree) however I can also see that this sets a precedent to plug every gap that is presented to them, of which there may be a great many, and which may be unaffordable for tax payers.

This thread sums up why so many landlords are getting out.