1. What is RPI-Based Rent Increase?

RPI (Retail Price Index) based rent increases tie annual rent adjustments to inflation rates. This method provides a transparent, market-linked approach to rent adjustments that reflects economic conditions.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• RPI — Retail Price Index (inflation rate percentage)

Explanation: The rent increase percentage equals the current RPI rate. Some leases may use RPI+X% formulas, but this calculator shows the base RPI calculation.

3. Importance of RPI Rent Increases

Details: RPI-based increases provide predictable, inflation-linked adjustments that maintain the real value of rental income while being fair to tenants. They're commonly used in commercial leases and some residential agreements.

4. Using the Calculator

Tips: Enter the current RPI percentage rate. The calculator will show the corresponding rent increase percentage. Check your lease terms as some may cap the maximum increase.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between RPI and CPI?
A: RPI (Retail Price Index) and CPI (Consumer Price Index) are different inflation measures. RPI typically runs about 1% higher than CPI and includes housing costs.

Q2: Can landlords use RPI+X% formulas?
A: Yes, some leases specify RPI plus an additional percentage (e.g., RPI+2%). This calculator shows just the RPI component.

Q3: Are there caps on RPI increases?
A: Some leases include caps (e.g., "RPI but no more than 5%"). Always check your specific lease terms.

Q4: How often is RPI updated?
A: RPI is published monthly by the Office for National Statistics, with annual figures typically used for rent reviews.

Q5: Is RPI still used since CPIH was introduced?
A: While CPIH is now the preferred measure, many existing leases still reference RPI for rent increases.