Shared ownership rent increases: what should RPs consider?

Matt Cowen

While social rents look set to be capped, associations will still be able to maximise their rental income from shared ownership properties to fund new homes. However, they should think carefully about this, writes Matt Cowen

As inflation reaches a 40-year high, many Registered Providers of Social Housing (RPs) have a choice to make: do they increase shared ownership rents in line with the levels permitted under tenants’ leases, thereby putting more financial squeeze on tenants, or do they resist imposing such a rent increase, resulting in additional cost pressures for their own business? 

The shared ownership model, where tenants own a share of their property and rent the remaining share from their RP landlord, accounts for approximately 200,000 affordable homes across the country.

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