Rent Increase Formula:
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The Consumer Price Index (CPI) rent increase is a method used in the UK to adjust rental prices in line with inflation. It's commonly used for social housing and some private rentals following government guidelines.
The calculator uses the standard CPI rent increase formula:
Where:
Explanation: The calculation shows how much your rent will increase based on the current inflation rate.
Details: The UK government recommends using CPI as a fair method for rent increases, particularly for social housing. The most recent CPI figure (usually from the Office for National Statistics) should be used.
Tips: Enter the current CPI percentage (without % sign) and your current monthly rent. The calculator will show both the increase amount and your new monthly rent.
Q1: How often can rent be increased using CPI?
A: Typically once per year, but check your tenancy agreement for specific terms.
Q2: Which CPI measure should I use?
A: The UK government typically uses the CPI including owner occupiers' housing costs (CPIH).
Q3: Are there caps on rent increases?
A: For social housing, increases are usually capped. Private rentals may have different rules - check your contract.
Q4: When is the CPI figure updated?
A: The Office for National Statistics publishes new CPI figures monthly.
Q5: Can landlords use a different calculation?
A: Yes, private landlords may use different methods if specified in the tenancy agreement.