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happy | Can anyone help me with a question about renting a property? |
I have lived in my flat since Aug 2006 and have paid the same rent since then. I just received a letter from my landlord to say they are putting my rent up to be more in line with the current prices in the market. They need me to sign a letter. Can they actually do this? |
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Wendy H
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Some private tenants live in their homes for years without the rent being increased. However your rent can be increased at any time if you agree to it. Even if you don't agree to it, most tenants will find it difficult to argue against rent increases. Some tenants, such as those with regulated (protected) and assured tenancies, will have more rights, however.
If you don't agree to a rent increase, your landlord may only be able to increase the rent at certain times. There may be a limit on how often your landlord can increase the rent. Your landlord may also have to follow a specific procedure for the increase to be legal. The rules depend on the type of tenancy you have.
If your tenancy is for a fixed period of time (known as 'fixed term'), such as six months or a year, your landlord cannot increase the rent until the fixed term ends. The only exceptions to this are if you agree to the increase (using a special form if you are a regulated tenant) or there is a clause in your agreement saying that the rent will be increased.
How much can it be increased by?
There is a limit to the amount that some rents can be increased by. This depends on the type of tenancy you have. Most private tenants have assured shorthold tenancies, but check here if you are unsure. Sometimes tenancy agreements contain information about rent increases, itemising when the rent will be increased and by how much.
Assured shorthold tenants
If you are an assured shorthold tenant your landlord will be charging you a 'market rent'. Market rents are affected by the availability and cost of other similar accommodation in the area, but, in reality, if your landlord wants to increase your rent, you don't have very much power to stop them.
If you think your rent increase is too high, as an assured shorthold tenant you have the right to apply to the Rent Assessment Committee (RAC) during the fixed term of your tenancy. However, since assured shorthold tenants don't have very strong rights, your landlord may prefer to evict you rather than reduce the amount of rent they want to charge.
It may be worth negotiating with your landlord to try to agree a lower rent increase in return for not having to re-let the property. Alternatively, your landlord may agree to increase the rent in stages over a period of time.
If the rent increase is too high and you cannot get your landlord to agree to a cheaper rent, you may have to look for alternative accommodation.
Assured tenants
Assured tenants pay 'market rents'. Market rents are affected by the availability and cost of other similar accommodation in the area. Assured tenancies provide a high level of security and your landlord has to follow certain procedures for increasing your rent (see the next section).
Regulated (or protected) tenants
If your tenancy started before 15 January 1989 you may have a 'regulated' or 'protected' tenancy. Regulated or protected tenants have a high level of security and are entitled to 'fair rents'. A fair rent is an amount of rent that a rent officer or Rent Assessment Committee sets as the maximum that your landlord can charge.
Fair rents can normally be increased once every two years. They can usually only be increased by a certain amount that is calculated using a formula. If your landlord has made substantial improvements to your home, the rent increase may be higher.
Other tenants or licensees
In most cases, if you are a tenant living with your landlord, or a licensee, your landlord can charge you any rent they want and you have no right to challenge this nor any subsequent rent increases, unless you are able to negotiate with your landlord.
If you have a written agreement outlining how the rent can be increased, and your landlord tries to increase your rent without following the procedure in this agreement, they may be in breach of contract. However, licensees and tenants with a resident landlord have very limited rights and can be evicted easily. It is important that you consider the situation very carefully before taking any action and, if you are in this position, consult an adviser, using our advice services directory to find one in your area.
A small number of tenants of resident landlords, who moved in before 15 January 1989, may have a 'restricted contract' tenancy. If you have such a contract, you may have the right to a reasonable rent being set by the Rent Assessment Committee. Again, speak to an adviser if you think you may be in this situation.
What does the landlord have to do?
The procedure that your landlord has to follow in order to increase your rent depends on what sort of tenancy agreement you have.
Assured shorthold tenants
If you have an assured shorthold tenancy, many landlords will increase the rent when they renew your tenancy agreement. It can be difficult to challenge the increase - your landlord can evict you quite easily if you don't agree to pay it.
Assured tenants
Your rent cannot be increased during the fixed term of your tenancy unless you agree to it or your tenancy agreement says it will be increased. After any fixed term expires, your rent can be increased if:
your tenancy agreement contains a procedure for rent increases (this is unusual) that your landlord follows
your landlord gives you written notice of the proposed increase
your landlord gives you written notice of making a change to the terms of your tenancy.
The amount of notice your landlord gives you before the rent increase takes effect must be at least one rental period (usually one month). Notice of changing any other terms of your tenancy must give you at least three months' warning.
When the landlord tries to increase the rent, you have the right to apply to a Rent Assessment Committee to set a market rent in some circumstances.
Regulated tenants
The rent paid by regulated tenants can only be increased by following the specific procedure for registering a fair rent. The procedure is that a landlord or tenant can apply to have a fair rent registered by the rent officer. They can only be re-registered every two years. There is a limit to the size of the increase each time. If you disagree with the fair rent that has been registered you can appeal to a Rent Assessment Committee.
Other types of tenants
Landlords of all other types of tenants do not have to follow specific procedures to increase the rent. In most cases, the rent can be increased at any time after the fixed term of the tenancy has ended.
Will my Housing Benefit be affected?
Yes. If you are claiming Housing Benefit (HB) and your rent is increased, you should inform the council's Housing Benefit department straightaway. You will need to provide evidence of the rent increase. This could be in the form of a letter from your landlord or a written decision from the RAC.
The council will reassess your HB claim and inform you of your new entitlement. If your new entitlement does not cover the whole of your rent, get advice. |
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lisa_b
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if you have no contract then yes they can.
otherwise they cant put your rent up in the middle of a contract
if you are going to have to agree to the rent rise, then make sure you have another fixed term contract so they cant put it up again in 6 months time |
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honey
 |
You been paying the same amount for 2 years,so it sounds reasonable there may be a rent increase.
The landlord has expenses ,ie insurances,letting agents and most likely a mortgage on the property.
Check your contract.
A good tenant is worth their weight in gold !....so if you've paid the rent on time,looked after the place etc.It would be in the landlords interest to keep you,rather than risk a bad tenant for the sake of a couple of quid !.......So you may be able to call his bluff and tell him you can't afford to pay much more and may have to find somewhere else......and you need longer to think about it......Its possible hes just hopeing you will just agree to the increase. IYSWIM |
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Kitten
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yes, they are entitiled to put the rent up once a year. they have to give you written notice.
you rent wont be the same for the next ten years, due to inflation etc. think about it, £10 does not have the same value today as it did 5 years ago.
its unfortunate, but its legal. |
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goz1111
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if you are on a month to month rental agreement, then the landlord with a month notice can raise the rent, you may want to look around for other rentals |
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alta
 |
Yes they can. If you have a contract that you signed at the commencement of the let, it should say in there, the time between rent increases, once the first 6mths are over he can raise the rent, then it is usually annually, and only by inflation. That does not stop him raising it to what he wants.
He does need to put it in writing, and if you agree to the rise then sign it, if you don't then refuse. The landlord will then more than likely serve you with a notice to quit. He then can rent it out at a higher rental.
But this all depends on your landlord/agent and the relationship between you.. Have a look around your area a similar sized properties and there rent, you may find that the amount he wants to raise it to may still be under the rate around you. |
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karla o
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i should think you need to sign a contract.
Landlords are after profit so i expect they are allowed to do this but after speaking to estate agents. |
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