1. What is RPI Rent Review?

RPI (Retail Price Index) rent review is a method for adjusting rental prices based on inflation. It's commonly used in commercial leases to determine periodic rent increases tied to the RPI inflation measure.

2. How Does the Calculator Work?

The calculator uses the RPI rent review formula:

Where:

• \( Old \) — Current rent amount
• \( RPI \) — Retail Price Index percentage increase

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

3. Importance of RPI Rent Reviews

Details: RPI rent reviews help maintain the real value of rental income for landlords while providing tenants with predictable, inflation-linked rent increases. They are particularly common in UK commercial property leases.

4. Using the Calculator

Tips: Enter the current rent amount in pounds (£) and the RPI percentage increase. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between RPI and CPI?
A: RPI (Retail Price Index) and CPI (Consumer Price Index) are different measures of inflation. RPI typically runs higher than CPI as it includes housing costs.

Q2: Are RPI rent reviews always used?
A: No, some leases use fixed increases, CPI, or other indices. The method should be specified in the lease agreement.

Q3: Can RPI increases be capped?
A: Yes, many leases include caps (and sometimes collars) on RPI increases to limit volatility.

Q4: How often are RPI rent reviews conducted?
A: Typically annually, but this depends on the lease terms - commonly every 3 or 5 years in commercial leases.

Q5: Where can I find current RPI values?
A: In the UK, the Office for National Statistics publishes monthly RPI figures.