1. What is RPI Rent Increase?

The RPI (Retail Price Index) rent increase is a common method used in the UK to adjust rental prices based on inflation. Many commercial and some residential leases include RPI-linked rent review clauses.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( RPI \) — Retail Price Index percentage (inflation rate)
• \( Current\ Rent \) — The current monthly rental amount in GBP

Explanation: The RPI percentage is divided by 100 to convert it to a decimal, then multiplied by the current rent to determine the increase amount.

3. Importance of Rent Increase Calculation

Details: Understanding potential rent increases helps both landlords and tenants plan their finances. For landlords, it ensures rental income keeps pace with inflation. For tenants, it helps budget for future housing costs.

4. Using the Calculator

Tips: Enter the current RPI percentage (available from the UK Office for National Statistics) and your current monthly rent. The calculator will show both the increase amount and the new total rent.

5. Frequently Asked Questions (FAQ)

Q1: How often is RPI rent increase applied?
A: Typically annually, but this depends on the terms of your lease agreement.

Q2: Is there a cap on RPI rent increases?
A: Some leases include caps (e.g., 5% maximum increase regardless of RPI). Check your specific lease terms.

Q3: What's the difference between RPI and CPI?
A: RPI includes housing costs while CPI (Consumer Price Index) doesn't. RPI is typically higher than CPI.

Q4: Can landlords use RPI for all UK rentals?
A: For residential tenancies, most increases are governed by different rules. RPI is more common in commercial leases.

Q5: Where can I find current RPI values?
A: The UK Office for National Statistics publishes monthly RPI figures on their website.