How is Shared Ownership rent calculated?

How do we calculate the rent you pay on our share of your home?

As a general rule, the rate of monthly rent on a Shared Ownership home at the point of purchase is calculated at an annual cost of 2.75% of the landlord’s share, meaning you are only paying rent on the portion of the property you do not own. This is often a subsidised rate offered by housing associations as part of the government-backed scheme, and enables your landlord to assist you in maintaining the structure and surrounding area of your property.

Like many private rental agreements, your rent payments will be subject to annual reviews and increases. However, unlike many private lease agreements, the process through which Shared Ownership rents are reviewed will be detailed in full. Typically, any increases in the rent you pay will be tied to a standardised index like the Retail Price Index (RPI) or the Consumer Price Index (CPI). This ensures the value of your rental payment only increases in a manner that is reflective of inflation, and not at the whim of your landlord.

You will often have the opportunity to reduce the amount of rent you pay by buying a bigger share in your property. This is done through a process called Staircasing. Find out more below.