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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am currently leaving in a rent house for 5 years. Every year

Resolved Question:

I am currently leaving in a rent house for 5 years. Every year the contract is renewed with an increase of rent usually more than the contract allows. This year the current contract term is the 23rd of July and the landlord wants to increase the rent again more than the contract states. I want to stay in the flat but I don't agree that the rent should be increased more than the contract states. After mentioning that the landlord sent a letter mentioning the end of the tenancy on the 23rd of July.
The contract states "It is agreed that the rental as defined in clause 3 of this agreement will be reviewed in an upwards only fashion on its anniversary and any subsequent anniversary in line with the RPI (Retail Price Index) increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%"
As the RPI is 2.7% I believe the rent will be increased only by 3%.
Can the landlord terminate the contract?
Also, the contract states that "no less than two calendar months notice may be served by the landlord at any time to terminate the tenancy" and the landlord is giving less than that.
Submitted: 2 years ago.
Category: Property Law
Expert:  Ash replied 2 years ago.

Alex Watts :

Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.

Alex Watts :

What type of contract do you have please?

Customer:

Hi Alex,

Customer:

Thank you for your help.
I beleive the tenacy agreement is a shorthold tenancy, a year term contract that has been renewed every year for 5 years now.

Alex Watts :

Does it give an automatic right to renew please?

Customer:

No, it doesn't.

Alex Watts :

OK.

Alex Watts :

Its bad news then I am afraid.

Alex Watts :

If the contract does not give a right to renew and the contract is for a fixed period of 12 months, then the Landlord can give notice to end the tenancy

Alex Watts :

An AST does not have many rights

Alex Watts :

There is no right to renew

Alex Watts :

The Landlord can simply give notice to take the property back at the end of each 12 month period

Alex Watts :

Sadly there would be nothing the tenant could do to stop that

Alex Watts :

If the contract was for 5 years with an annual increase and that formula was not stuck to, the tenant could do something

Alex Watts :

But as this is an annual renewal the Landlord can really charge what he wants upon renwal

Alex Watts :

I am sorry if this is not the answer you are after and certainly not the one I want to give you, but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

I understand.
I am just a bit confused because then what is the use of that clause stating in what terms the rent can be increased upon the renew of the contract.

Alex Watts :

Yes it is strange, but you have no right to renew

Alex Watts :

Once the 12 months is up then sadly it can either be renwed or you are on a monthly rolling tenancy

Alex Watts :

It sounds like the Landlord just renews every year for a further 12 months

Alex Watts :

I am sorry its not better news

Customer:

And about the two months notice that is required to terminate the contract. Doesn't it apply to this case?

Alex Watts :

Yes it does from the Landlord

Alex Watts :

For you its 1 month or whatever is in the contract

Customer:

So, the landlord gave me the letter yesterday stating the tenancy will end on the 23rd of July, which is less than 2 months notice.

Customer:

Can I stay over the 23rd of July to make two months notice?

Alex Watts :

You need to make him give you 2 months notice BEFORE your billing period

Alex Watts :

If its after your normal billing period the 2 months starts from the NEXT month billing period

Alex Watts :

Does that clarify?

Customer:

Sorry, don't know I understood.
So, if i pay the rent on the 24th and the letter was given to me yesterday the 2 months count starts on the 24rd of June?

Alex Watts :

Yes, he needs to give you notice by 24th June and you have to be out by 24th August

Customer:

Ok. Thank you for your help.

Alex Watts :

Happy to help

Alex Watts :

If this answers your question please can I invite you to rate my answer

Alex Watts :

If the system wont allow you please do say

Alex Watts :

If you need more help please click reply

Customer:

Yes, of course.

Customer:

I think you've answer all my doubts.

Customer:

thank you!

Alex Watts :

Happy to hel[

Alex Watts :

* help *

Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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