1. What is RPI Index Rent Increase?

The Retail Price Index (RPI) is a measure of inflation that tracks changes in the cost of a fixed basket of retail goods and services. Many rental agreements include RPI-linked rent increase clauses that allow landlords to increase rent in line with inflation.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Rent — Current rental amount before increase
• RPI — Retail Price Index percentage increase

Explanation: The formula calculates the new rent by applying the percentage increase (RPI) to the original rent amount.

3. Importance of Rent Increase Calculation

Details: Understanding rent increases helps both landlords and tenants plan finances, budget for housing costs, and ensure rent adjustments comply with lease agreements.

4. Using the Calculator

Tips: Enter the current rent amount and the RPI percentage increase. 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) includes housing costs like mortgage interest payments, while CPI (Consumer Price Index) does not. RPI typically gives a higher inflation rate.

Q2: How often can rent be increased using RPI?
A: This depends on the lease agreement terms, but typically rent increases are annual and tied to the RPI from a specific month.

Q3: Are there limits to RPI-based rent increases?
A: Some jurisdictions may cap rent increases regardless of RPI. Always check local rental laws and lease terms.

Q4: Where can I find current RPI values?
A: RPI is published monthly by national statistical offices (e.g., ONS in the UK, BLS in the US).

Q5: Can RPI decreases reduce my rent?
A: Most rent review clauses only allow increases, not decreases, even if RPI goes negative.