1. What is RPI Rent Review?

The RPI (Retail Price Index) Rent Review is a method for adjusting rental prices based on inflation. It's commonly used in commercial leases to ensure rents keep pace with economic changes.

2. How Does the Calculator Work?

The calculator uses the RPI Rent Review formula:

Where:

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

Explanation: The calculation determines how much a rent should increase based on the inflation rate measured by RPI.

3. Importance of RPI Rent Adjustment

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

4. Using the Calculator

Tips: Enter the current RPI percentage (without % sign) and the current monthly rent amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between RPI and CPI?
A: RPI (Retail Price Index) and CPI (Consumer Price Index) are both measures of inflation, but RPI typically includes housing costs and tends to be higher than CPI.

Q2: How often are RPI rent reviews typically conducted?
A: Most commercial leases specify RPI reviews annually, though some may be every 3 or 5 years.

Q3: Can RPI increases be capped?
A: Yes, many leases include caps (and sometimes floors) on RPI increases to protect both landlords and tenants.

Q4: Is RPI still commonly used in leases?
A: While still used, many newer leases are moving to CPI as it's generally lower and considered more accurate by economists.

Q5: Where can I find current RPI values?
A: Official RPI figures are published monthly by national statistical offices (e.g., ONS in the UK).