Rent Increase with a Rent Review Clause of RPI
A landlord wants to increase the rent on a four-bedroom property from £775 to £900. £900 is still very low for similar properties in the area.
However, the AST has this clause:
It is agreed that the rent as defined in this agreement will be reviewed in an upwards-only fashion on the anniversary of this tenant and upon each subsequent anniversary in line with the (RPI). Increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%.
Can you confirm if only 7.5% of the rent can be increased? We didn’t raise this on the last anniversary (June).
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