1. What is the RPI Index Rent Review?

The RPI (Retail Price Index) Rent Review is a method for adjusting rental prices based on inflation. It links rent increases to changes in the RPI, providing a transparent and objective way to adjust lease payments over time.

2. How Does the Calculator Work?

The calculator uses the RPI Rent Review formula:

Where:

• \( New \) — New rent amount
• \( Old \) — Original rent amount
• \( Current\_RPI \) — Current RPI index value
• \( Base\_RPI \) — RPI index value at lease start

Explanation: The formula adjusts the original rent proportionally to the change in the RPI index between the base date and review date.

3. Importance of RPI Rent Reviews

Details: RPI-linked rent reviews provide a fair and predictable method for landlords and tenants to adjust rents in line with inflation, avoiding disputes and maintaining real rental values.

4. Using the Calculator

Tips: Enter the original rent amount, the RPI index value at the lease start (base RPI), and the current RPI index value. All 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 they use different methodologies and cover slightly different baskets of goods.

Q2: How often are RPI rent reviews typically done?
A: RPI rent reviews are commonly done annually, but the frequency should be specified in the lease agreement.

Q3: Are there caps on RPI-linked rent increases?
A: Some leases include caps (maximum increases) or collars (minimum increases) to limit volatility in rent adjustments.

Q4: Where can I find current RPI values?
A: RPI values are typically published monthly by national statistical offices or central banks.

Q5: Can RPI decreases lead to rent reductions?
A: Unless specified otherwise in the lease, RPI decreases could theoretically lead to rent reductions, though many leases include clauses to prevent this.