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Jo W
Jo W, Solicitor
Category: Property Law
Satisfied Customers: 90
Experience:  Expert in property law including landlord and tenant
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What is the maximum a landlord can increase the yearly rent

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What is the maximum a landlord can increase the yearly rent by on a small monthly tenancy commercial unit. The proposed increase is 5% for those paying by direct debit or 10 % for other payments.
JA: Where is this? It matters because laws vary by location.
Customer: Sowerby bridge
JA: What steps have been taken so far?
Customer: We have just received written notice
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: The rent is increased every 2 years by the rate of inflation
Hello,

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Hello. My name is***** am a solicitor here to help you with your question. I will respond as soon as practicable which will be some time today.

Hi there.

There is not a set ceiling for how much rents can be increased, everything should depend on what is in the lease.

Does the lease have a rent review clause?  Is that the every 2 years' by inflation?  If so, then the rent increase should be calculated against inflation.  There are many lists of inflation rates available online.  For example:

U.K. Inflation Rate - Historical Data

YearInflation Rate (%)Annual Change

20191.74%-0.55%

20182.29%-0.27%

20172.56%1.55%

Otherwise, if the lease is silent on rent reviews, revaluation and negotiation in the open market is the most common method of recalculating a commercial rent at review date.  There is not a set amount or ceiling as to how much a rent can be increased unless it is set out in the lease.  It would be useful to find out similar rent prices for similar units nearby to get an idea of what is being charged.

If parties cannot agree a new rent, the rent review clause in the lease usually stipulates a procedure for a third party dispute resolution  - you will need to check the lease to see if there is one. If there's no rent rent, the lease might not say anything about dispute resolution.

If you can't come to agreement over a new rent, then RICS runs a Small Business Scheme for rent reviews, which may be worth looking at.

I trust that this has been of  help. Any queries, let me know.

Jo W, Solicitor
Category: Property Law
Satisfied Customers: 90
Experience: Expert in property law including landlord and tenant
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