Landlord putting up rent by 25%

[Tenancystress]

I’m in a flat spin. We have rented a place for the standard rate for the area less than a year ago and the landlord has now said they want to make a 25% increase in rent due to rising costs. No date attached so I assume they mean that they will want me to start paying it by the end of this month. We’ll have to be paying it out of savings. I’m unable to work due to ill health.
I know that we will need to move out and find another cheaper place as the solution but it’s really not easy to do and we’ve only just moved. I don’t know how moving will affect school and the kids. We have been good tenants.
Is it really possible that anyone’s mortgage could have gone up by 25%? And is there any standard notice period for bringing in rent rises that I can ask for? Can I negotiate and offer to pay the exact difference of their mortgage rising? Citizens’ advice bureau? They’re not professional landlord just a single place they rent out so they may not know the rules. Please be gentle I am in a total panic.

I'm guessing you're in England so I'm not sure of the laws but here in Scotland there is a cap of 3% on rent increases due to col. You must also give 3 months notice of a rent increase. There must be similar laws in England. Shelter website is very informative.

What does your tenancy agreement state regarding notice for rent increases and levels of increase. That would be your starting point.

I think it depends on the figures involved. If your rent is £400 and going up to £500 then £100 more a month is not unreasonable in the current climate. If you’re paying £1000 and it’s gone up to £1250 then this could easily reflect a change in mortgage rate. Mortgages have not gone up by 25% but a 4% increase on a mortgage of £250,000 for example will be a significant increase to monthly payment. You need to talk to your landlord to get an understanding of why the rent needs to increase. If it is simply because they want to make more money with no mortgage increase this seems pretty poor form but if they have had a mortgage hike then they may need to cover their costs.

They have to give you a months notice of a rental increase. I had this last year. They can't just demand you immediately pay it half way through the rental month.

As @Lightshows says - quite possible their repayment has gone up enough that a 25% increase on rent is necessary to cover it. My repayment has doubled. So even a 25% increase on my tenants rent wouldn’t cover it.i don’t feel comfortable increasing rent by more than about £50’a year though so will be doing that.

worth explaining you won’t be able to pay this long term and will have to move, see if there is any negotiation? They will lose a chunk having it empty to find another tenant.

Thanks everyone I appreciate this so much, will try to find the agreement. it’s 2K going up to 2.5K. Sorry to be so panicked I am just absolutely horrified at having to move again.

It has to be official not just a "btw rents going up by 25%" so it has to be from x date rent will be y amount

Are you eligible for benefits? If your on a low income you might be eligible for DHP

Also have you tried negotiating with them? They might find it cheaper to keep you than be empty and find someone less reliable

What does your contract say? When I was renting, the initial year was always a fixed price per month and then either go on to rolling month where things could change, or fix for another year.

Do speak to them and try negotiating. Be aware that as soon as you pay the new rent you are deemed to have agreed to it, so don't pay the increase until you have agreed it with the landlord.

£2k? Are you in London. As others have said the contract should state when they can ask for a raise but that does seem steep

I have 3 questions @Tenancystress

Rent has gone up from £2,000 to £2500 a month

£2,000 to £2,500??? Where do you live ?

I’m unable to work due to ill health.

How are you managing £2,000 a month now if you are not working?

I know that we will need to move out and find another cheaper place as the solution but it’s really not easy to do and we’ve only just moved

How can the landlord put the rent up if you have 'only just moved?'

Up by £500 that's steep.

I would contact them and ask when do they plan to increase it from which date, and then try and negotiate. They are well within their rights to say no to negotiating but at least you'd of tried.
Don't forget to ask for it within writing. Text or phone call doesn't count.

Yes ,we’re in London. Need to be here for family support and help. I just checked the tenancy agreement and it doesn’t mention anything about rent rises at all. It does say they can give notice to us at two months notice. They aren’t doing that but I am frightened that they may do if I quibble.
Not in receipt of benefits because DP is in work.

Remember if they have a BTL mortgage they most likely have to retain a ratio of interest payable to rent received. The reality what is the market rate locally. We have a BTL property and hadn't increased rent in 3 years to be nice! However I gave 4 months notice of a 5% increase (£50) which still leaves the rent under market rate purely because there may at some stage be a cap on increases brought in.

I have had some of my BTL mortgages go up over 100% in the last year so a big increase is possible. Insurance has increased a lot too. In my case I subsidise all the properties as I can’t justify increasing rents that much and it isn’t fair to the tenants.

They do have to give a minimum of one months notice for a rent increase (in writing) and don’t think it can be done more than once a year.

that is a very steep rise though!

What a scumbag. Make sure you take advice from Shelter before contacting your landlord.
It’s an absolute disgrace what landlords are allowed to get away with in England. As PP has said there’s a 3% cap on rent increases in Scotland and tenants can’t be evicted just at the drop of a hat.
People need to start voting differently - the Tories don’t give a fuck about tenants (or anything except their rich pals) despite their role in worsening the housing crisis. This makes me so mad.
Sorry for the rant which is not helpful but do contact Shelter for advice on what’s possible.

When did you move in OP? And what was your contract for? E.g. are you in a fixed 12 month contract or are you rolling month to month?

Thank you and yes I agree about protections for tenants. I’ve been a landlord in the past myself and would not dream of doing something like this. I’ve also always donated to Shelter. I really hope they can advise.

Is your deposit protected?
Go to CAB and go thru your contract
Make sure everything is by the book

One year contract from the start date which was in June

I would join the Tennants UKs Facebook page as it doesn't sound like your LL is following legal process.
If they are not then regardless of their costs they can not just I crease your rent.

How long is your contract? We had yearly contracts in our rental place and the rent was fixed for a year. If you’ve been there less than a year they may not be allowed to put it up yet - depending on contract etc.

Id reply back and say that it is unaffordable and get clarification of when they expect it to increase.

Also I’d ring charities for advice like Shelter as that is a very big increase.

Thank you will look that up.

That's steep. There really should be something in the contract about notice periods for rent increases. Definitely worth contacting CAB or Shelter. As an aside, everyone is focused on the mortgage costs. There's also building insurance, landlord insurance, fund pot for repairs etc assuming they're a decent landlord. (I'm not a landlord btw)
I really hope you get sorted. It must be a very anxious time for you. Best of luck.

Cross posts - I think they can’t increase it until June at the earliest given this. At least that is how it worked when i rented somewhere.