View Full Version : Annual Rent Increase in Tenancy Agreement - Current Thinking?

12-12-2011, 13:43 PM
I'm currently re-letting a property at the same rent it has been let at for the past three years.

The various websites suggest that advertised rents in the area have increased by just under 5% in the past year, although the agent suggests this particular property won't warrant the increase.

That aside, I know that it became popular for AST agreements to include a clause linking an annual rent increase to the Retail Price Index or similar. Are these clauses still popular?

Agent's opinion aside, costs of maintenance and so on increase in line with inflation and this would be a useful hedge.

What are other landlords doing at the moment?

12-12-2011, 13:50 PM
I review the rents "as and when".

I personally do not think a blanket set amount linked to "x,y and z"is a good idea, as they rarely bare any resemblance to anything to do with that particular property.

12-12-2011, 13:54 PM
What are other landlords doing at the moment?I don't believe in 'automatic' RPI clauses; I review my rents annually and make a decision on whether to adjust them or not based on local market conditions and how much I value the current tenant; ie if I have a good tenant that I want to keep, then I'm likely to minimise any increases to keep them sweet. Conversely if the property is being readvertised, that's the time I'm most likely to readjust things.

12-12-2011, 16:09 PM
There is no need for such a term, section 13 of the 1988 Act allows you to review the rent annually and that may take into account a number of factors.

13-12-2011, 02:53 AM
Thanks for the opinions.

Snorkerz - I appreciate that such a clause isn't required.