1. What is the RPI Rent Increase Calculator?

The RPI (Retail Price Index) Rent Increase Calculator helps landlords and tenants determine the new rent amount when applying an RPI-based increase to the current rent. This is commonly used in UK commercial leases.

2. How Does the Calculator Work?

The calculator uses the RPI rent increase formula:

Where:

• Current Rent — The existing rental amount in GBP
• RPI Rate — The percentage increase based on Retail Price Index

Explanation: The formula applies the RPI percentage increase to the current rent to calculate the new rental amount.

3. Importance of RPI Rent Calculations

Details: RPI-based rent reviews provide a transparent, index-linked method for adjusting rents that reflects inflation and maintains the real value of rental income over time.

4. Using the Calculator

Tips: Enter the current rent in GBP and the RPI rate as a percentage. The calculator will show the new rent amount after applying the increase.

5. Frequently Asked Questions (FAQ)

Q1: What is RPI?
A: The Retail Price Index (RPI) is a measure of inflation in the UK that tracks changes in the cost of a fixed basket of goods and services.

Q2: How often are RPI rent increases applied?
A: Typically annually, but this depends on the lease terms. Some leases specify RPI increases every 3 or 5 years.

Q3: Is RPI the same as CPI?
A: No, RPI (Retail Price Index) and CPI (Consumer Price Index) are different measures of inflation. RPI generally produces higher figures than CPI.

Q4: Are there caps on RPI rent increases?
A: Some leases include caps (maximum percentage increase) or collars (minimum percentage increase) on RPI-based rent adjustments.

Q5: Can RPI decreases reduce rent?
A: Unless specified in the lease, most RPI clauses are upward-only, meaning rent won't decrease even if RPI is negative.