Terms & Conditions

[krissyf]

Can anyone clarify under Sch 2 para 2 (3) (c) what exactly is meant by ”a rent increase under the term of the tenancy”.

We have always only referred for a rent increase within 52 weeks of the last referral if it states specifically in the tenancy that the rent will increase on a specific date, or in 1 year/6 months eg.

However we now have a case where the claimant has the standard paragraph in their tenancy agreement, along the lines of rent is ”subject to any increase in rent to which the landlord may hereafter be entitled pursuant to Section 6 and/or Section 13 of the Housing Act 1988”, and they have been told by our local Rent Service that they would accept the referral.

When we spoke to our local rent service they said that if there is any reference at all to a ‘rent increase’ in the tenancy agreement then we should refer it (as long as the last determination was not made under para 1(2), 2(2) or 3(3) of Sch 1 to The Rent Officers Order).

I’d be interested to hear what other councils do, or any advice.

[Anonymous]

I’ve never come across one myself, but I understand it to mean that the tenancy itself defines a rent increase within the term. For example, “this tenancy is for 12 months, the first 6 at £100 per week, rising to £110 per week there after.”

If it doesn’t say “the rent will increase to £x, on such-and-such a date” then it’s not a term of the tenancy.

But as I say, I’ve never seen one so I’m willing to be shot down on this.

Darren

[markp]

I think Darren is right in his analysis in that the tenancy agreement should state that the increase is from a specific date.

However, also willing to be shot down in flames!……..

Do I know what I'm doing? The jury's out on that........................

[Anonymous]

Our policy is as described in the two posts above: the tenancy has to specify the date and amount of the increase for it to be counted as a term of the tenancy.

[Anonymous]

I think s13 of the Housing Act 1988 places an implied term in all Assured Tenancies that rent may be increased upon service of a notice not more than once a year. But I don’t think this applies to Assured Shorthold tenancies, where the rent has to be specified in advance for the whole term.

So if you have an open-ended Assured Tenancy with nothin specified in the written agreement about rent increases, s13 in effect acts as an unwritten term providing for annual rent increases. I think that’s how it works and I can see why the Rent Officer would encourage you to send those for a new valuation

[Author]

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