1. What is the RPI Rent Calculator?

The Retail Price Index (RPI) Rent Calculator determines the new rent amount after applying an RPI-based increase to the current rent. This is commonly used in UK commercial leases where rent reviews are tied to inflation.

2. How Does the Calculator Work?

The calculator uses the RPI rent formula:

Where:

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

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

3. Importance of RPI Rent Calculations

Details: RPI-based rent increases help landlords maintain the real value of rental income against inflation, while providing tenants with predictable, inflation-linked increases.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: How often are RPI rent increases applied?
A: Typically every 1-5 years, as specified in the lease agreement.

Q3: Is RPI still used for rent reviews?
A: While CPIH is now the UK's preferred inflation measure, many existing leases still use RPI.

Q4: Can RPI increases be capped?
A: Yes, some leases include caps (maximum increases) or collars (minimum increases) on RPI adjustments.

Q5: What's the difference between RPI and CPI?
A: RPI includes housing costs and uses a different calculation method, generally resulting in higher inflation figures than CPI.