Legal limits for rent rise?

Legal limits for rent rise?

0:01 AM, 19th June 2023, About A year ago 18

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Hi all,

I’m renting a one-bedroom flat in London for £1000 a month. The tenant has been there for seven years, and I have not raised the rent in that time. I am advised the current market value for the rent is around £1450 per month. Next summer, the mortgage will increase by up to £800 per month, and in order to break even I will need to put the rent up. I would like to put the rent up this year by a smaller amount.

However, I am aware there are probably legal limits for an annual rent rise, and the tenant will want to stay in the flat and do everything in his power to keep the rent as low as is legally possible. However, the current tenant is single and unlikely to be able to afford the market-value rent alone.

I would really appreciate some advice from Property118 readers. First on the legal annual limit for a rent rise (it is a rolling tenancy); Secondly any other ideas – possibly, sadly, in terms of getting the tenant to leave so as to rent the flat for the market value and break even when the mortgage interest rate increases next year.

Many thanks,

Rebecca


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aga smart

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19:55 PM, 19th June 2023, About A year ago

Reply to the comment left by Rajeev Kanwar at 19/06/2023 - 18:55
HMRC could check, but they won't find anything that benefits me indeed. So, the tenants are paying the rent to legal owners only. They also pay their tax and fill their own self assessment form every year

GLee

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21:31 PM, 19th June 2023, About A year ago

I hope Shelter are reading this. Many landlords are honest, hardworking people who strive to provide a good service to the community, often at their own expense.

RoseD

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22:19 PM, 19th June 2023, About A year ago

Reply to the comment left by GLee at 19/06/2023 - 21:31
Hmm....then we'd be running a charity so let's be real, we all looking to make a profit but that doesn't make us bad landlords.

Rex

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6:27 AM, 20th June 2023, About A year ago

Charging a correct rent for the area and dwelling. Keeping in line or just below market value makes financial sense. Anything less you asking for trouble. Renting property is like a business. If you want to make it work, you need to always look into the future too to plan ahead for worst case scenario's too.

Annabel Blake

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8:34 AM, 20th June 2023, About A year ago

Reply to the comment left by Rajeev Kanwar at 19/06/2023 - 18:55
We are 'professional landlords' with a limited company and a medium-sized portfolio, but we have not raised rents routinely every year as our mortgage costs have stayed extremely low for many years now - why would we have pushed rents up and added to the general image of greedy landlords getting every penny they can out of downtrodden tenants? I think the tone of your comment was unwarranted.

Dennis Forrest

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8:49 AM, 20th June 2023, About A year ago

Thinking outside the box. If anyone is selling up but still wants to invest in rented properties there are companies you can buy shares in like Unite Group, a FTSE 250 company, which currently yields 3.6% and dividends should increase over time. It specialises in student accommodation and partners with 60 UK universities.. If you can be relaxed that share prices can go up but also down this might be a lot less hassle than your own BTL. The way things are going it seems that companies like this will be encouraged by governments rather than supporting nasty, greedy private landlords.

Roy Jones

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21:00 PM, 25th June 2023, About A year ago

Only just joined this site
After 10 years of renting.
1 st tenant dealing drugs left property with all contents left for disposal due to money owed to drug gang.
2nd tenant left without reason left a tip again skip contents.
3rd had to evict as received asbo and non payment 4 months
Complete wrecked house all electrical sockets ripped out left crap furniture and bike shed full of wood and rubbish took a whole van paint on walls carpets ruined kitchen ripped out
Never will I ever be a landlord again. I know I’m not alone but heart breaking and so much hassle not worth it now selling up as house in need of complete refurb thnks to vandalism on a high level

Landlord Phil

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13:28 PM, 13th July 2023, About A year ago

Reply to the comment left by GLee at 19/06/2023 - 21:31
They probably are, but how often do they comment on landlords that try to do the right thing?

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