Rent put up unexpectedly, but rent rise included in contract
Hello! A family friend has asked me for help working out what to do.
First time they are renting privately, in London, through an agent. Rent has gone up by £200 this month. There was no warning about this, although I have checked their rental contract and the last line includes a clause that states that their rent will be increased by a set percentage at the end of the first, second and third years.
Sadly, they have used a no deposit scheme (I wasn’t aware of this until just now). They are planning to leave as landlord has been pretty useless with upkeep of the boiler, and this has tipped them over the edge. They simply can’t afford the increase.
Strangely, their contract includes the use of a deposit (despite them using a no deposit scheme). Does this invalidate the contract? Or does the no deposit scheme just mean the landlord has received the deposit from elsewhere?
What are their options? My initial thought was to continue paying the previous amount and then deduct it from the deposit when they leave, but it doesn’t appear that is an option now.
Thanks