Rent Act (Regulated) tenancy; Rent Officer rent increase

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    Rent Act (Regulated) tenancy; Rent Officer rent increase

    Hello,
    My Parents were finally established as *Regulated tenants* [ Rent Act Tenants] earlier this yr.
    We found out from records that the last *Registered Rent* made at our property was made some 30 yrs previously. Since that last registration we have been the only tenents to move and stay in that property.
    As you can imagine that registered rent figure is very low by todays standards.
    Now that we are finally accepted as being rent act tenents, the LL has asked the rent officer to come around and set a fair rent for our home.
    My question is:
    Does the rent officer have to bear in mind this last registered amount rent when setting the new fair rent? What l mean is, we are hoping he will be constrained to not being able to set a new rent much higher than the last previously set fair rent. or desnt it work that way?

    Regards

    Montana

    #2
    The rent officer will use a formula to work out what the rent should be.

    It will be based on the average price for similar lettings in your area and will take into account the condition of the property, there are various other factors which will also affect the amount.

    Once registered the rent will be fixed for a minimum of two years before the landlord can apply for another increase.
    I offer no guarantee that anything I say is correct. wysiwyg

    Comment


      #3
      Thanks JTA,

      but.... will the rent be set as of todays fair rent settings or will the Rent Officer have to take into account the amount at which the last registered fair rent was set some 30 yrs previously?
      Please correct me if l'm wrong but isnt the rent only able to be raised higher by a certain percentage of the last registered rent ???

      Comment


        #4
        I had to do this same thing when I bought a property with a regulated tenant in 15 years ago, the rent just about doubled at that time. It's not that much more now, it does only go up in dribs and drabs.

        Be fair to your landlord, it's his investment and you have had a good run for the little money that has been paid, let the guy at least make enough out of it so that when you need maintenance he can afford to do it.
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


          #5
          l just found this info on the net:

          http://www.landlordlaw.co.uk/content/FeatureJun2003.pdf

          *Rent Acts [maximum fair rent] order 1999* which limited the increases that could be made to fair rents.
          l'd be grateful if anyone could let us know if this might apply to us in our circumstances seeing as there hasnt been a new registered rent set at our home for approx 30 yrs now.

          JTA, l thought only *limited increases* could be made to a rent act tenants rent amounts whenever a new fair rent assessment was carried out by a Rent Officer.

          Comment


            #6
            I can only relate my own experience, and I only have one regulated tenancy. I would think the rent officer would set a fair rent in line with today's market.

            I have to say that I get the impression that the current rent being paid for this property is less than £20pw. that hardly seems at all 'fair' to the landlord.
            I offer no guarantee that anything I say is correct. wysiwyg

            Comment


              #7
              I expect that the "knee jerk" reaction of Mr. Harold Wilson's government to the unpleasant activities of Peter Rachmann will ensure that any "fair rent" increase that will now be agreed by the rent officer will only be "fair" in the eyes of the tenant - untill his landlord refuses to carry out any but the most basic repairs due to lack of funds.

              P.P.
              Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

              Comment


                #8
                The phrase 'fair' rent uses that word in a technical (non-literal) sense not necessarily what one would consider 'fair' in common parlance.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  thanks guyz,

                  but... does anyone know whether or not there are restrictions on how much a new fair rent can go up compared with the last fair rent certificate on that property?
                  will todays fair rent be applied irrespective of the amount set on the last fair rent? or will the rent officer have to take the last fair rent certificate amount into account when setting the new fair rent today ?

                  Comment


                    #10
                    Look! It is going to be a fair rent in today's market. The rent officer will look at the files and he will explain to you how it's worked out.

                    Why do you not just call the rent office and ask the question of them?
                    I offer no guarantee that anything I say is correct. wysiwyg

                    Comment


                      #11
                      l did and he couldnt give me any answers, apart from saying: " l'm really not sure about this one"
                      We are keeping our fingers crossed that the new fair registered rent can only be increased by a set percentage of the previous fair rent certificate.
                      am l totally wrong in thinking [hoping] this is the way it works ?

                      Comment


                        #12
                        Originally posted by montana View Post
                        We are keeping our fingers crossed that the new fair registered rent can only be increased by a set percentage of the previous fair rent certificate.
                        am l totally wrong in thinking [hoping] this is the way it works ?
                        Yes I think you are.

                        A body called the Rent Assessment Service which is also a Government appointed service can also be involved in deciding appeals against Rent Officer decisions. The Rent Act 1977 provide the rules for setting Fair Rents and the Rent Acts (Maximum Fair Rent) Order 1999 limits the amount of rent that can be charged by linking increases to the Retail Prices Index.
                        So it will be set according to the RPi as it is today.
                        I offer no guarantee that anything I say is correct. wysiwyg

                        Comment


                          #13
                          Thanks JTA,

                          So our registered rent at the moment might go up 100's of percent when this officer sets our new fair rent in the following weeks ???
                          l thought the previous last registered fair rent cert prevented the ongoing next fair rent cert of being able to be increased so considerably.

                          Comment


                            #14
                            Originally posted by montana View Post
                            Thanks JTA,

                            So our registered rent at the moment might go up 100's of percent when this officer sets our new fair rent in the following weeks ???
                            l thought the previous last registered fair rent cert prevented the ongoing next fair rent cert of being able to be increased so considerably.
                            The explanation given above, of linking the rent to the RPi, would cause an increase whose order of magnitude will be linked to the change in the RPi since the date of the last registered rent.

                            You could estimate this likely change by looking at the time series of the RPi.

                            Find (a) the value of the RPi for the date when the rent was last registered, and (b) the value of the RPi for August 2010. Divide (b) by (a), subtract 1, and multiply the result by 100. This indicates the percentage increase. If that's the only thing the Rent Officer takes into account, then there's your answer.

                            Comment


                              #15
                              To find figures for RPI (or CPI), use the website of the Office for National Statistics: http://www.statistics.gov.uk/cci/nugget.asp?id=21
                              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                              4. *- Contact info: click on my name (blue-highlight link).

                              Comment

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