Help! last minute scary rent increase!

[Whirliwig72]

We are tenants under an assured short-term tenancy that we renew yearly in October. There is an annual tie-in of 6 months Oct - March where we cannot give notice without incurring a hefty penalty. After that we can give 4 weeks notice to leave.

Anyway, our plan for this autumn was to rent for a further 6 months then leave when the fixed term expires in the spring. However when our landlady popped our contract round today to renew (with a little less than a months notice to go) we noticed a huge rent hike of 5% equating to £110 more a month. Last year's was on £60. There has been no previous discussion of a rent increase this year and there is nothing detailing one in our contract.

We would really struggle to find this extra a month - the rent is eye watering as it is - and i'm wondering if we even have the option of not renewing now since we cannot now give a full month's notice before the next contract starts?

What scares me most is we've got to know our land-lady fairly well over the last three years (we always accommodate her regular short notice visits and have even done stuff socially with her) but the fact she has proposed this hike very last minute when we have very little time to make a rational decision seems rather underhand to me. If these are here true colours I'm dreading moving now as I bet she'll make trying to get our deposit back a nightmare!

[Whirliwig72]

only £60 I mean!

[LolaCrayola]

This happened to us and we refused to sign. The tenancy was then on a month to month basis (rolling contract?) at the original rent. We then gave notice to leave, but I guess if you don't give notice they will give you notice but that will give you an extra two months? This did happen a few years ago so my knowledge is not up to date, may be someone else will come along who knows more. But my advice is to refuse to sign a new contract at the increased rent and see what happens next, she may decide that good tenants are better than an extra hundred quid.

[Whirliwig72]

Thank you Lola that's really useful and hopeful!

[LadyMercy]

Hi Whirli. As i understand it, on the expirey of the fixed term a statutory periodic tenancy arises automatically. This is a rolling tenancy agreement with the same terms as the fixed term. It runs month to month.

In order to terminate this tenancy, you would probably have to give one months notice. The landlord would have to service a section 21 notice on you in order to start the process of making you leave, giving a minimum of 2 months notice.

I agree with Lola. Don't sign it right now if you are not happy. Think about speaking with your landlady.

Incidentally, did you pay a deposit for the property? Do you know whether it is protected in a scheme?

[expatinscotland]

Don't sign it! What a cow to do this.

[QuintessentialOldDear]

check your contract, could be that rent increases must stay in line with inflation, which currently is 2.9%.

Read here for information about how to legally increase rent, seems she needs to have issued you a section 13 notice six months prior to rent increase: rent increase

[specialsubject]

don't sign and do follow the advice here. Also find out where your deposit is, it MUST be protected and if it isn't you need to take action.