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Question

Changing the Rent (England) | During the Tenancy (England) | England

Giving 3 months’ notice that a 1 year AST will not be renewed on existing terms, and that new terms will not include all energy and water bills

3 May 2022 | 1 comment

I issued a 1 year AST on Sep. 1st last year to 2 named tenants in a flat-share. They are independent and do not know each other.. It expires on Aug. 31st.  It stipulates that the rent will not be increased during the fixed term of 1 year.  The AST includes council tax, BT internet and telephone rental, TV license, water and elec. and gas.  I had no idea that the utility bills would rise dramatically.  Will I be correct to inform them  months before expiry, that I will not be renewing the contract, but that I can issue a new AST on new terms?  The terms I am proposing are that the rent will remain the same, but that I will only pay the first £10 each month of water, gas and electricity, instead of all of it.  I  would then need to email them copies of the bills when they come in.  If they accept these new terms, will it be legal ?

Answer

1 Comment

  1. guildy

    That sounds very complicated, and the £10 is so negligible we don’t see it being worth it in our view.

    The other problem is it may result in arguments because one will say they are always out and that the other uses more gas and electricity than them.

    We would try to agree on a rent increase to start after the fixed term and ensure it’s sufficient to cover the much higher costs. If you can’t reach an agreement, you can give notice and re-let the property at the higher rent.

    Alternatively, once the agreements go periodic, you can serve a section 13 notice which says the rent “shall” increase to whatever it says in the notice.

    Please see here for all options on increasing the rent.

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