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.

Just because the LL is getting an additional £500 it's not £500 profit - they're paying 20/40% tax on that, so a £300pcm rise in their mortgage will very likely result in £500 extra cost to you. So yes, massive rise for OP isn't necessarily OTT if their fixed rate has ended.

Your contract sounds dodgy though - nothing about rent increase at all? Also as PP have said, the letter should clearly set out when the increase begins & give you at least 1mth notice.

I'm guessing this is an individual and not a managed let? I'm wondering if there's other information on your rights that you should have be given/procedures they've skipped. Definitely worth speaking to shelter for professional advice.

Sorry OP, it's a stressful start to the year.

Shelter says that the landlord cannot increase your rent during a fixed term unless you agree. So be clear you're not agreeing. That's if There isn't a clause in your contract. There is also something about a formal process to increase our of the fixed term but don't worry about they for now. They have a detailed website. I literally found this info by googling shelter rent increase and it explains the law quite clearly

If you have a 1 year fixed term AST, the landlord can’t increase the rent (unless you agree) until the end of the fixed term unless there is a rent review clause in the contract.

Do you have a break clause? Unless there is a break clause, the landlord can’t give you notice to leave and end the contract until the end of the 1 year fixed term either.

I think they may not be experienced landlords and may not know the rules. We haven’t seen a protected deposit notice. I have been wondering if this could be a sublet of a residential mortgage.
My worry is that even if they can’t legally ask for this increase in the first year, that if we say no; they will just serve us the minimum two months’ notice to leave, which is very little time to find an affordable place to live in this area. Having to move after such a short time is really expensive and stressful.
The area we are in works for schools and the family support that I need given my illness. DP can ask to up his hours at work to cover this but that is not guaranteed to be possible hence we would be paying out of savings.

Cannot increase rent in the initial term or year so any increase would be from month 13

Please check all contract and paperwork was issued correctly.
EPC / EICR/ Gas safe cert/ Right to Rent guide/ Deposit protection certificate and prescribed information as the minimum.
I also include comprehensive inventory with photographs.

OP, everything about this isn’t legal. Do not agree to pay. Do not worry about eviction because that’s a lengthy process too.

MSE forum for this is brilliant as lots of lawyers on there etc - please post there

There is WAY too much to unpick here @Tenancystress take all the documents you have and book a free session with citizens advice. Dont try and unpick this yourself because at the moment you only have half the story and not much legal knowledge yourself which is why you are so stressed. go and see experts who can do this for you and work out exactly what is happening. the owners mortgage has clearly gone up and they are trying to pass that cost onto you. dont do anything until you have proper face to face advice from someone who has the knowledge to do this and all of the facts in front of them.

Well surely your contract is for 12 months @£2000. That is what you both agreed to.

As you're in London you can contact this free legal advice service they offer a telephone pro bono service if you scroll down the home page a bit - probably quicker for you than using the housing form. Mary Ward Centre gets a lot of support from the big city firms so hopefully they will be able to speak to you and give you a clearer idea of where you stand.

https://www.marywardlegal.org.uk/

they cant increase in a fixed term nor can they evict you

get some advice but afaik you have until next june to fnd something else

Thank you so much everyone I appreciate it such a lot. This is just such a horrible shock. Thank you for the Mary Ward Centre details. I have been refreshing and refreshing on the Shelter website (calls are for emergencies) but the chat bot is busy. I’m really grateful for everyone’s suggestions.

Definitely get advice

dont panic! As PP has said you’re in your fixed term still. none of this sounds by the book which actually works in your favour.

A colleague’s LL tried to increase their rent by 50% (to well above market rate). LL served Section 21 but it was invalid (I think no gas certificate) so he waited until the end of the two months to tell him and LL had to serve again after getting the certificate. It all took 5months which gave him time to look for a new place but in the end the LL agreed to his lower amount anyway.

Of course you can negotiate. I would start with a letter telling them you can accept an increase in line with current CPI and not over. That's reasonable. It's not right you think about covering ALL the landlords mortgage interest. Don't be so soft.

Tell him you can't afford that level of increase and will be looking to move out asap. If you are a reliable tenant he might compromise on the rent rise. If he hasn't given you a start date he might be putting his toe in the water, seeing what your response was. People are sometimes reluctant to lose reliable tenants. Missed payments, damage to property, empty property while clearing up after poor tenants and finding new tenants can lose landlords a couple of months rent money plus cost of repairs. If you are a good tenant tell him you can't afford an increase and see what he says. You have nothing to loose.

It's nitnyour job to be their legal advisor. So don't give them a heads up.

Check all the registered Deposit protection schemes if yours isn't in there you're about to bank!

They can’t just increase the rent during a fixed term tenancy.

It’s all here.

https://england.shelter.org.uk/housing_advice/private_renting/rent_increases/fixed_term_tenancy

My mortgage on a BTL has gone up from £450 to.£1200 a month. That is interest only.

That’s not necessarily correct. If there’s a rent increase clause or a break clause it’s not just a case of you can’t do that. The timing suggests there is potentially a 6 month break clause.

Unless there is a break clause.

And how much profit were you making when the interest rates were low but rents high?

As others have said, if there is no provision in the tenancy agreement, then the landlord cannot increase the rent. As you point out though, if there is a break clause, they could invoke that clause. At very least you could probably negotiate a two month period until the rent increases.

More importantly, if you have not been made aware of the deposit scheme, your landlord is breaking the law. You could (and I am not necessarily advocating this) tell the landlord that you won't report him if your rent stays the same until the end of your tenancy agreement. Depends if you want to play hardball, which could backfire.

Unless your contract specifically has a break clause, they cannot increase the rent nor can they give you notice. You simply respond by reminding them you have a 12 month fixed term contract in which you agreed to pay £2000. You can also tell them you've sought advice (even if said advice is from their webpage) from Shelter and their advice is that the rent cannot be increased within a fixed term contract.

Also to add they need to send you a specific form to give you notice of the rent increasing (they can't just send a generic email) which details the rent increase and date - which must be at least one months notice. But again, they can't do this if it means the rent will increase during the fixed term.

I can't believe this is actually legal in England! Glad we have tenancy protection in Scotland as the above poster says.