Ridiculous rent rise
Question
My landlord is also my ex. I've met someone else and really want them to move in so my ex is putting the rent up. Although I think this is reasonable in principle, the amount he's asking for is above market value. I've told him this and he refuses to offer an alternative. Can he do this? Do I have any rights?
Answer
Your rights will depend on what type of tenancy you have. If you rent privately and your landlord doesn't live with you, you're likely to have an assured shorthold tenancy. The following information is based on this assumption so if you aren't an assured shorthold tenant it's important you seek further advice from your local Citizens Advice Bureau (CAB) or Housing Aid Centre.
It's sometimes possible to get the rent of an assured shorthold tenancy reduced if it's excessive. However, this is rare and can only be done during the first six months of the tenancy. If you think your rent is very high in comparison with similar properties in your area, you should get further advice.
If your landlord wants to put the rent up, he has to follow a set procedure. If you have a fixed term tenancy the landlord can't increase the rent during the first fixed term. Fixed term tenancies are ones that are for a set length of time, usually for six or twelve months. Once the first fixed term ends, your landlord may grant you a new fixed term agreement and you and your landlord should agree the rent. If you don't make a new agreement but your landlord allows you to stay, you'll become a 'statutory periodic tenant'.
Periodic tenancies are tenancies that are not fixed term and usually run from month to month. Statutory periodic tenancies are tenancies that continue after a fixed term has ended. For these tenancies, the rent can only be increased in the following ways:
- If your tenancy has a rent review clause, then this must be used to increase the rent. If not, the rent can only be increased by you both agreeing to an increase or by giving you a formal 'notice of increase';
- The 'notice of increase' must be in a certain form, say how much the new rent is, and say when it comes into effect. If the landlord doesn't follow the correct procedure for the notice and you have not agreed to any increases, you are entitled to continue paying rent at your existing level. So it's important to get advice if you receive a notice;
- If you don't accept the proposed rent, then before the notice expires, you may be able to refer it to the Rent Assessment Committee (RAC), which will set the rent.
Think carefully before applying to the RAC as they can increase as well as decrease the rent. A local advice centre (such as your CAB or Housing Aid Centre) can help you compare rents in your area so that you can make you make a decision about whether you should go to an RAC. It's common for rent assessments to increase the rent. Once an RAC has set a rent, your landlord can't increase the rent for 12 months, unless you agree. In some circumstances, you can't refer your rent to the RAC and an adviser will tell you whether this applies to you.
If the rent is increased and you receive housing benefit, you should immediately inform the housing benefit department of the increase. They may not be able to meet the increase if the rent is too high. If this is the case, it might be helpful to seek further information and advice from your local CAB or Housing Aid Centre.
If you're an assured shorthold tenant and have a contract for six months or less, your landlord will be able to evict you quite easily after the first six months. You should therefore always get advice before deciding whether to challenge a rent increase. This is because, unfortunately, some landlords choose to evict tenants who won't agree to a rent increase.
Updated: 12/09/2008
Question answered by Shelter
