1. What is CPI Rent Increase?

The CPI (Consumer Price Index) rent increase is a method used in the UK to adjust rental prices based on inflation. Landlords often use the CPI percentage published by the UK government to calculate allowable rent increases.

2. How Does the Calculator Work?

The calculator uses the standard CPI rent increase formula:

Where:

• Old Rent — Current rental amount in GBP
• CPI — Consumer Price Index percentage

Explanation: The formula applies the CPI percentage increase to the existing rent amount to calculate the new adjusted rent.

3. Importance of CPI Rent Calculations

Details: CPI-based rent increases help maintain the real value of rental income for landlords while providing a fair, inflation-linked adjustment for tenants. In the UK, many commercial leases and some residential agreements use CPI for annual rent reviews.

4. Using the Calculator

Tips: Enter the current rent amount in GBP and the CPI percentage (typically the latest published figure from the UK Office for National Statistics). The calculator will show the new rent amount after the CPI adjustment.

5. Frequently Asked Questions (FAQ)

Q1: Which CPI index should I use for UK rent increases?
A: Most contracts specify either CPI or CPIH (CPI including housing costs). Check your lease agreement for the exact index to use.

Q2: How often are CPI rent increases applied?
A: Typically annually, but this depends on the terms of the lease agreement.

Q3: Is there a cap on CPI rent increases?
A: Some contracts include caps (e.g., 5% maximum increase regardless of CPI). Always check your specific lease terms.

Q4: Where can I find the current UK CPI rate?
A: The UK Office for National Statistics publishes monthly CPI figures on their official website.

Q5: Does this calculator work for commercial and residential rents?
A: Yes, the calculation method is the same, but always verify which index your specific contract requires.