Is rent linked to RPI?
RPI increases and ground rent clauses Such increases are particularly alarming for those homeowners who pay ground rent that is calculated linked to increases in RPI.
How are rent reviews calculated?
The lease provided that ‘the annual rent for a review period is to be determined at the relevant review date by multiplying the initial rent by the index for the month preceding the relevant review date and dividing the result by the base figure’.
What is a CPI rent review?
Essentially, this type of rent review helps prevent inflation decreasing the real value of the rental over time. A CPI rent review usually includes a set formula for calculating the rent so there is reduced likelihood of a dispute or large fluctuations in the rental figure.
What is the RPI for 2021?
Table
| Period | Value |
|---|---|
| 2018 | 3.2 |
| 2019 | 3.3 |
| 2020 | 2.1 |
| 2021 | 2.9 |
When can landlord review rent?
The review system was introduced after World War II (in a bid to counteract the impact of high inflation levels), and by the 1960s, was carried out by commercial property landlords every seven or 14 years. These days, rent reviews typically occur every three to five years, and are usually initiated by the landlord.
Can rent reviews be backdated?
The Landlord is able to carry out the rent review after the specified date should they wish and any rental increase can be backdated to the date on which the review should have taken place.
What is a rent review?
A rent review is a mechanism in your lease where you and the landlord agree or fix a new rent. Usually this is based on the current market rent.
How is CPI rent review calculated?
How to calculate a CPI rental increase
- Calculate the difference in CPI figures: for example, 202.1 – 192.9 = 9.2.
- Calculate the percentage: (9.2/192.9) X 100 = 4.76%
- Apply this figure to your current rent: (4.76/100) X $400 = $19.04.
- Add 20 per cent of the increase: $3.80.
- Add $19.04 + $3.80 = $22.84.
What is the RPI figure for September 2021?
4.9%
RPI inflation was 4.9% in September 2021 (Index: 308.6), up from 4.8% in the year to August 2021.