Rent increased twice in 7 months
Discussion
A young lady I know rents a room in an HMO and is upset to be hit with a rent increase demand only seven months after the last one.
She says she moved there in July 2022. In February 2023 she was asked to sign a new tenancy agreement with a higher rent. Yesterday, the agent phoned her up and said they again want her to sign a fresh contract with higher rent, adding that if she refuses, she will be given notice to leave.
Now, https://www.gov.uk/private-renting/rent-increases says:
"For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement.
"For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree. If you do not agree, the rent can only be increased when the fixed term ends."
The agreement she has is for a fixed term of six months from February 2023, then changed to a periodic/rolling one-month basis from August 2023, so I'm not sure how those two rules apply. She's in the periodic phase now, and the landlord is imposing a second rent rise in less than a year. On the other hand, the page says the landlord can increase the rent when the fixed term ends.
Does the "without your agreement" part carry any weight anyway? If your contract says the landlord can give you notice to quit whenever they like, surely it becomes a "take it or leave it" situation, as the agent said to my friend?
Any thoughts on whether all this is legal/illegal/underhand/perfectly fair? She says she may ask the CAB about it.
Also she's shown me part of her tenancy agreement, which states clearly that her rent can only go up once a year, by the CPI rate. Is it permissible to promise this in the agreement, but then override that seven months later by replacing that contract with a new one? Or maybe that's standard practice?
She says she moved there in July 2022. In February 2023 she was asked to sign a new tenancy agreement with a higher rent. Yesterday, the agent phoned her up and said they again want her to sign a fresh contract with higher rent, adding that if she refuses, she will be given notice to leave.
Now, https://www.gov.uk/private-renting/rent-increases says:
"For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement.
"For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree. If you do not agree, the rent can only be increased when the fixed term ends."
The agreement she has is for a fixed term of six months from February 2023, then changed to a periodic/rolling one-month basis from August 2023, so I'm not sure how those two rules apply. She's in the periodic phase now, and the landlord is imposing a second rent rise in less than a year. On the other hand, the page says the landlord can increase the rent when the fixed term ends.
Does the "without your agreement" part carry any weight anyway? If your contract says the landlord can give you notice to quit whenever they like, surely it becomes a "take it or leave it" situation, as the agent said to my friend?
Any thoughts on whether all this is legal/illegal/underhand/perfectly fair? She says she may ask the CAB about it.
Also she's shown me part of her tenancy agreement, which states clearly that her rent can only go up once a year, by the CPI rate. Is it permissible to promise this in the agreement, but then override that seven months later by replacing that contract with a new one? Or maybe that's standard practice?
Edited by Granadier on Thursday 21st September 11:47
I’m pretty sure the agency can’t issue any eviction notices now without going through a s
t load of hassle as the laws on tenancy changed a couple of months ago, which is probably why they are asking her to sign a new contract and slipping in a rent increase at the same time.
That might not be strictly correct though!
t load of hassle as the laws on tenancy changed a couple of months ago, which is probably why they are asking her to sign a new contract and slipping in a rent increase at the same time.That might not be strictly correct though!
The fact that she is being asked to sign a new tenancy agreement indicates that the agents are trying it on.
She has a contract that states only yearly increases.
Issue is that she is on a rolling tenancy and so the agency / landlord can issue notice on their side for her to leave, So its a sticky wicket for her.
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
She has a contract that states only yearly increases.
Issue is that she is on a rolling tenancy and so the agency / landlord can issue notice on their side for her to leave, So its a sticky wicket for her.
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
Burrow01 said:
The fact that she is being asked to sign a new tenancy agreement indicates that the agents are trying it on.
She has a contract that states only yearly increases.
Issue is that she is on a rolling tenancy and so the agency / landlord can issue notice on their side for her to leave, So its a sticky wicket for her.
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
Looks like the template tenancy agreement on the.gov website. I use it for my tenants. As you point out in theory the contract states the rent can increase only once a year but her AST is only 6 months. The landlord is entirely within his rights to give 4 weeks notice if she refuses to accept a new AST with a higher rent.She has a contract that states only yearly increases.
Issue is that she is on a rolling tenancy and so the agency / landlord can issue notice on their side for her to leave, So its a sticky wicket for her.
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
I've only ever increased the rent to a current tenant once before; generally if i have a good tenant I'll leave the rent fixed (last one was 5 years) but if faced by a cost increase outside my control then I would have to pass it on. I'm likely to be faced with that situation next year with a tenant and a fixed rate BTL mortgage deal that will need renewing. I reckon the monthly increase in rent will be about 20% on the current interest rates. So not sure that you can say the agent is trying it on in the current financial situation where leveraged landlords are seeing large interest hikes as old fixed rate deals end.
caiss4 said:
Looks like the template tenancy agreement on the.gov website. I use it for my tenants. As you point out in theory the contract states the rent can increase only once a year but her AST is only 6 months. The landlord is entirely within his rights to give 4 weeks notice if she refuses to accept a new AST with a higher rent.
I've only ever increased the rent to a current tenant once before; generally if i have a good tenant I'll leave the rent fixed (last one was 5 years) but if faced by a cost increase outside my control then I would have to pass it on. I'm likely to be faced with that situation next year with a tenant and a fixed rate BTL mortgage deal that will need renewing. I reckon the monthly increase in rent will be about 20% on the current interest rates. So not sure that you can say the agent is trying it on in the current financial situation where leveraged landlords are seeing large interest hikes as old fixed rate deals end.
I thought it was 8 weeks notice?I've only ever increased the rent to a current tenant once before; generally if i have a good tenant I'll leave the rent fixed (last one was 5 years) but if faced by a cost increase outside my control then I would have to pass it on. I'm likely to be faced with that situation next year with a tenant and a fixed rate BTL mortgage deal that will need renewing. I reckon the monthly increase in rent will be about 20% on the current interest rates. So not sure that you can say the agent is trying it on in the current financial situation where leveraged landlords are seeing large interest hikes as old fixed rate deals end.
ETA just realised she rents a room in an HMO so maybe you are correct.
Edited by LimmerickLad on Thursday 21st September 14:03
Welcome. said:
I’m pretty sure the agency can’t issue any eviction notices now without going through a st load of hassle as the laws on tenancy changed a couple of months ago, which is probably why they are asking her to sign a new contract and slipping in a rent increase at the same time.
That might not be strictly correct though!
The abolition of Section 21 (no fault eviction) notices is only a proposal as part of the Renter's Reform Bill which has not passed in to law yet.t load of hassle as the laws on tenancy changed a couple of months ago, which is probably why they are asking her to sign a new contract and slipping in a rent increase at the same time.That might not be strictly correct though!
caiss4 said:
LimmerickLad said:
I thought it was 8 weeks notice?
It is whatever the payment period is. So if the tenant pays monthly then it's 4 weeks; weekly then 1 week or quarterly then 3 months.LimmerickLad said:
Assume that's specific to renting a room in an HMO as I thought it was 2 months s21 noticefor an AST?
As I recall once a fixed term AST reverts to a periodic tenancy both parties can give notice equal to the payment period so in this case 1 month notice to the tenant. If the tenant does not comply with the notice then the landlord would have to issue a Section 21 notice which as you state is two months. If I thought a tenant would be unlikely to oblige to my request under the terms of the tenancy agreement I'd probably issue a Section 21 notice straight away. Fortunately I've never been faced with this situation and hope I never do.Burrow01 said:
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
I understand the proposed increase is about 15%, and the new contract would be for another 6 months, then reverting to periodic.Thanks for the comments everyone, all useful to know.
caiss4 said:
LimmerickLad said:
Assume that's specific to renting a room in an HMO as I thought it was 2 months s21 noticefor an AST?
As I recall once a fixed term AST reverts to a periodic tenancy both parties can give notice equal to the payment period so in this case 1 month notice to the tenant. If the tenant does not comply with the notice then the landlord would have to issue a Section 21 notice which as you state is two months. If I thought a tenant would be unlikely to oblige to my request under the terms of the tenancy agreement I'd probably issue a Section 21 notice straight away. Fortunately I've never been faced with this situation and hope I never do.LimmerickLad said:
Makes sense but in the current climate I'm not sure how easy it would be for any tenant to find suitable alternatives with just 1 months notice.
You're probably right. I've just had a change of tenant in one property. The previous tenant gave 1 months' notice as per the periodic tenancy. I waited a couple of weeks, advertised the place and within 24 hours had 26 enquiries and 6 serious interested parties. Took down the ad and did viewings over a couple of days. The first question was 'Our we the first to see the property?' The first couple to view said they wanted it; I said I wanted all 6 to view before deciding. At least one subsequent viewer offered to pay more to secure it (I declined btw). Ended up with a 4 day void (had to do some redecorating) and the first couple moved in. In 10 years I've never known anything like it.
Granadier said:
Burrow01 said:
How much is the increase, and would it be a contract for a year, or another rolling tenancy - i.e is it worth fixing the rent for a full year, or would she be liable to the same blackmail increase in 6 months time?
I understand the proposed increase is about 15%, and the new contract would be for another 6 months, then reverting to periodic.Thanks for the comments everyone, all useful to know.
I have every sympathy for her.
And also for the landlord IF, like me, he has a mortgage to pay on the property.
Not everyone has a fixed rate - mine on my own home is a base rate linked variable rate mortgage and the rate has increased 15 times in the last two years, from under £600 a month to over £1500 a month.
We are all being screwed over by Putin, and the effect his war has had on food and fuel prices, which in turn has pushed up inflation and made the Bank of England step in and make efforts to control inflation. In a couple of years time we may thank them for this, but right now it hurts.
FWIW it is quite possible that they have now done enough and mortgage rates may plateau for the next 12 months and trhen fall. But that won't help with the chronic shortage of housng stock, and houses to rent particularly
And also for the landlord IF, like me, he has a mortgage to pay on the property.
Not everyone has a fixed rate - mine on my own home is a base rate linked variable rate mortgage and the rate has increased 15 times in the last two years, from under £600 a month to over £1500 a month.
We are all being screwed over by Putin, and the effect his war has had on food and fuel prices, which in turn has pushed up inflation and made the Bank of England step in and make efforts to control inflation. In a couple of years time we may thank them for this, but right now it hurts.
FWIW it is quite possible that they have now done enough and mortgage rates may plateau for the next 12 months and trhen fall. But that won't help with the chronic shortage of housng stock, and houses to rent particularly
If the rent is paid calendar monthly, then the landlord/agent has to give the tenant two (2) calendar months Notice.
There are two (2) types of Periodic Tenancy Agreements, the first and most common is the Statutory Periodic Tenancy (hereafter SPT) , where the original Assured Shorthold Tenancy Agreement (hereafter AST) simply rolls over into a SPT. The other type of Periodic Tenancy is a Contractual Periodic Tenancy (hereafter CPT), this is where the landlord & tenant have previously agreed in the terms of the original AST, that at the end of the fixed period of the AST, the tenancy will become a CPT.
Under a Statutory Periodic Tenancy the tenant still retains the legal rights and terms of the original AST, the rights to two (2) months Notice from the landlord/agent, with the landlord having to enforce any term in the AST covering rental increase, from the OP's posting that term is one rental increase per twelve calendar months. Any rental increase should be via a Section 13 Notice, and will have to include one calendar month Notice before the increase can take effect.
If the tenant deems the rent increase too high and/or objects to the rental increase under the term of the original AST, then the tenant has a right of appeal to the First Tribunal, or being a HMO to the local council's private housing officer.
My advice to the OP's friend is to seek alternative accommodation, and not to communicate with the agent, leaving it for the agent to carry out their threat of serving the tenant with Notice.
There are two (2) types of Periodic Tenancy Agreements, the first and most common is the Statutory Periodic Tenancy (hereafter SPT) , where the original Assured Shorthold Tenancy Agreement (hereafter AST) simply rolls over into a SPT. The other type of Periodic Tenancy is a Contractual Periodic Tenancy (hereafter CPT), this is where the landlord & tenant have previously agreed in the terms of the original AST, that at the end of the fixed period of the AST, the tenancy will become a CPT.
Under a Statutory Periodic Tenancy the tenant still retains the legal rights and terms of the original AST, the rights to two (2) months Notice from the landlord/agent, with the landlord having to enforce any term in the AST covering rental increase, from the OP's posting that term is one rental increase per twelve calendar months. Any rental increase should be via a Section 13 Notice, and will have to include one calendar month Notice before the increase can take effect.
If the tenant deems the rent increase too high and/or objects to the rental increase under the term of the original AST, then the tenant has a right of appeal to the First Tribunal, or being a HMO to the local council's private housing officer.
My advice to the OP's friend is to seek alternative accommodation, and not to communicate with the agent, leaving it for the agent to carry out their threat of serving the tenant with Notice.
Wings said:
If the rent is paid calendar monthly, then the landlord/agent has to give the tenant two (2) calendar months Notice.
There are two (2) types of Periodic Tenancy Agreements, the first and most common is the Statutory Periodic Tenancy (hereafter SPT) , where the original Assured Shorthold Tenancy Agreement (hereafter AST) simply rolls over into a SPT. The other type of Periodic Tenancy is a Contractual Periodic Tenancy (hereafter CPT), this is where the landlord & tenant have previously agreed in the terms of the original AST, that at the end of the fixed period of the AST, the tenancy will become a CPT.
Under a Statutory Periodic Tenancy the tenant still retains the legal rights and terms of the original AST, the rights to two (2) months Notice from the landlord/agent, with the landlord having to enforce any term in the AST covering rental increase, from the OP's posting that term is one rental increase per twelve calendar months. Any rental increase should be via a Section 13 Notice, and will have to include one calendar month Notice before the increase can take effect.
If the tenant deems the rent increase too high and/or objects to the rental increase under the term of the original AST, then the tenant has a right of appeal to the First Tribunal, or being a HMO to the local council's private housing officer.
My advice to the OP's friend is to seek alternative accommodation, and not to communicate with the agent, leaving it for the agent to carry out their threat of serving the tenant with Notice.
Thanks for the detailed explanation...seems I was right then?There are two (2) types of Periodic Tenancy Agreements, the first and most common is the Statutory Periodic Tenancy (hereafter SPT) , where the original Assured Shorthold Tenancy Agreement (hereafter AST) simply rolls over into a SPT. The other type of Periodic Tenancy is a Contractual Periodic Tenancy (hereafter CPT), this is where the landlord & tenant have previously agreed in the terms of the original AST, that at the end of the fixed period of the AST, the tenancy will become a CPT.
Under a Statutory Periodic Tenancy the tenant still retains the legal rights and terms of the original AST, the rights to two (2) months Notice from the landlord/agent, with the landlord having to enforce any term in the AST covering rental increase, from the OP's posting that term is one rental increase per twelve calendar months. Any rental increase should be via a Section 13 Notice, and will have to include one calendar month Notice before the increase can take effect.
If the tenant deems the rent increase too high and/or objects to the rental increase under the term of the original AST, then the tenant has a right of appeal to the First Tribunal, or being a HMO to the local council's private housing officer.
My advice to the OP's friend is to seek alternative accommodation, and not to communicate with the agent, leaving it for the agent to carry out their threat of serving the tenant with Notice.
Sadly, serving a Section 21 notice (colloquially known as "no fault eviction") which gives the tenant two months notice to leave is the landlord's last resort if a tenant doesn't agree to a rent increase where agreeement is required by law.
In this case, as this is the first increase in the periodic tenancy, it is lawful. Renewing the tenancy allows for another increase in 6 months time. i would describe this as 'sharp practice' but it isn't unlawful. The landlord may be mortgaged to the hilt and have no choice or s/he may just be greedy.
It is wrong that tenant's have to live on renewed 6 month ASTs which offer no security, I think, but that's the nature of the market. I say this as a landlord of an HMO.
In this case, as this is the first increase in the periodic tenancy, it is lawful. Renewing the tenancy allows for another increase in 6 months time. i would describe this as 'sharp practice' but it isn't unlawful. The landlord may be mortgaged to the hilt and have no choice or s/he may just be greedy.
It is wrong that tenant's have to live on renewed 6 month ASTs which offer no security, I think, but that's the nature of the market. I say this as a landlord of an HMO.
Thanks for everyone's comments.
This situation has had an unexpected happy ending.
The tenant pleaded her case to the agent and also had a brief conversation with the landlady, who happened to visit the property a few days later. Shortly after that, the agent phoned back the tenant and very pleasantly told her that they had reconsidered, and that since the rent had gone up only six months earlier, they could offer a new contract with no price increase at present.
This situation has had an unexpected happy ending.
The tenant pleaded her case to the agent and also had a brief conversation with the landlady, who happened to visit the property a few days later. Shortly after that, the agent phoned back the tenant and very pleasantly told her that they had reconsidered, and that since the rent had gone up only six months earlier, they could offer a new contract with no price increase at present.
Granadier said:
Thanks for everyone's comments.
This situation has had an unexpected happy ending.
The tenant pleaded her case to the agent and also had a brief conversation with the landlady, who happened to visit the property a few days later. Shortly after that, the agent phoned back the tenant and very pleasantly told her that they had reconsidered, and that since the rent had gone up only six months earlier, they could offer a new contract with no price increase at present.
Common sense prevailed..agent being the provocateur?This situation has had an unexpected happy ending.
The tenant pleaded her case to the agent and also had a brief conversation with the landlady, who happened to visit the property a few days later. Shortly after that, the agent phoned back the tenant and very pleasantly told her that they had reconsidered, and that since the rent had gone up only six months earlier, they could offer a new contract with no price increase at present.
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