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Question Title: Rent increases
| Question: 399 |
| We have tenants in a property where their fixed term ends in November and they have advised us that they wish to renew for a further period. In their original agreement there is a clause that states that the rent will increase after a year in line with the Retail Price Index (RPI) up to a maximum of 5%. We have suggested to the landlord that the rent rise by £25 per month but he wants an increase of double this amount. Can he do this?
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| Answer: |
| Rent increases in assured shorthold tenancies can be achieved in a number of ways. Firstly by agreement between the parties and secondly by the use of s13 Housing Act 1988. This latter procedure would require the landlord to give notice of the new rent he wants to charge on the prescribed statutory form, (currently available on the Letting Centre's website at www.letlink.co.uk). The tenant could either agree and accept the rent increase or reject it and refer the matter to a rent assessment committee, who would then determine the appropriate level of rent. However this route is not available to this landlord as the tenancy agreement has express provisions for rent increases. The landlord cannot therefore increase the rent by more than RPI which currently stands at 2.8%.
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References:
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Pages:
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Hyperlinks:
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Letting Handbook |
Chapter 10 |
letting-handbook-and-factsheets.html
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Letting Factsheet No 13 |
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factsheet-13
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For more information, discuss on the Forum
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