I am renting a (London) flat with an Assured Shorthold Tenancy Agreement which has a duration of 12 months. Since this tenancy started at a time when property prices were temporarily low (during one of the coronavirus lockdowns), I requested an extra term in the contract to ensure the price would not go up too much at the point of renewal. The lettings agent added this term, which I agreed to:
After the first 12 months of the tenancy the landlord has the right to increase the rent of the property to up to 3% at the rate of RPI.
Now that the 12 months of the contract are ending and the agent wants to renew, they're looking to increase the rent substantially (by nearly 30%). Had I been aware that they would do this, I would not have taken the flat in the first place (hence me requesting the assertion in the contract).
I'm aware that my easiest recourse is to simply let this tenancy end without renewing and move elsewhere (with the relatively lower costs which that entails), but this made me wonder about the enforceability of terms like this in a tenancy contract: the intent of the term is clear and unambiguous, but does it actually hold any legal sway?