Shared ownership rent increase

tony3619

Hello 

I'm trying to work out my rent increase due in April. 

My shared ownership lease states "rent will increase in line with the retail price index plus 2%" 

If rent is currently £450 am I right in thinking it will rise by the current RPI (3%) plus 2% meaning 5%? 

Cheers 

Runningmad

I'm not 100% and I'm sure someone will correct if wrong but I think it could be 2% of the 3% if that makes sense. I don't like seeing zero replies so thought I'd comment but like I say I could be wrong. 

AFF8879

tony3619 said:

Hello 

I'm trying to work out my rent increase due in April. 

My shared ownership lease states "rent will increase in line with the retail price index plus 2%" 

If rent is currently £450 am I right in thinking it will rise by the current RPI (3%) plus 2% meaning 5%? 

Cheers 

Correct, 5% rise so new monthly rent will be £472.50.

tony3619

Thanks both of you for the replies. I was starting to worry with all the reports of rising inflation and what that would mean for rent rises!

Poppytim

I have some issues with my Housing Association re the rent increase from April in my shared ownership property as they are trying to charge an 8.34 % increase which does not seem to be correct according to the Government Housing and Levelling up site which seems to state that I can be charged no more than the difference between the cpi from last year to this year plus up to 0.5% - my lease states the figures are used from January each year so it seems to me it should be 5.5 less 0.7 plus 0.5 which to my simple mind should be a 5.3%increase and not 8.34. Would appreciate any advice

theartfullodger

Is it not easier to ask your landlord? Perhaps they are feeling kind given all the **ap folks are going through and won't increase as much as they could........

sammyjammy

tony3619 said:

Hello 

I'm trying to work out my rent increase due in April. 

My shared ownership lease states "rent will increase in line with the retail price index plus 2%" 

If rent is currently £450 am I right in thinking it will rise by the current RPI (3%) plus 2% meaning 5%? 

Cheers 

RPI for what month?  Does it state?

nyermen

If its current RPI, then thats 7.8% I think for RPI (From february - next update is later this month)

Leggitte

You are correct with your assumption in the original post. I just had a annual rent & service charge review letter through and it states:

Please accept this letter as formal notice that your current shared ownership rent will be increased by 5.4 per cent for the period of 1st April 2022 to 31st March 2023. The rent increase is based on the Retail Price Index (RPI) as at September 2021 plus 0.5 per cent (i.e. 4.9 per cent plus 0.5% equals 5.4 per cent).