Subletting a shared ownership home

Thinking about subletting your shared ownership home? We’ve provided a summary checklist of things you’ll need to consider.

IMPORTANT UPDATE: The Renters’ Reform Act 2025 has introduced new complexities for shared owners who are subletting. We’ll review the new legislation and guidance and publish a guide on what you need to know as soon as we can.

Thinking about subletting your shared ownership home? It can seem tempting, say, if you’re struggling to sell and can’t live in the property for whatever reason. Or, if you obtain a temporary work contract in another part of the country (or another part of the world even). However, as a shared owner, you don’t have an automatic right to sublet. Different housing associations have different policies, so check with your own landlord.

‘Although shared owners do not have the right to sub-let their home, a provider may agree to sub-letting arrangements where there is a genuine need for it. Requests from shared owners must be considered on a case-by-case basis and providers must not adopt a blanket approach to their assessment processes. Sub-letting arrangements should not, for example, all be granted for the same length of time. Instead, all requests must be considered on their individual merits, with any sub-letting arrangements reflective of the shared owner’s particular circumstances.‘

Homes England Capital Funding Guide

Some landlords don’t allow shared owners to make a profit on subletting. But it will be challenging to break even. Make sure you’ve thought about all the costs you might need to pay.

Checklist

We’ve provided a summary checklist of some things you’ll need to consider.

Scroll to the end of this feature for useful resources for more detailed information on being a landlord.

Legal obligations

Becoming a landlord isn’t something to undertake lightly, as you will need to comply with various legal requirements. ‘Accidental landlords’ have the same obligations as any other landlord.

Housing association

You will need to seek permission to sublet from your housing association.

Lender

If you have a mortgage, you’ll need to inform your lender. This is likely to involve changing your current residential mortgage to a Consent to Let or Buy to Let mortgage.

Licensing

Some local councils have set up licensing schemes for landlords. If so, licence fees may be significant.

Letting agent

You could use a letting agent to help you manage your property. As well as a monthly fee, agents charge various one-off fees including: inventory check, tenancy agreement fee, and rent deposit registration.

Insurance

You will need to take out specialist landlords insurance.

Tax

You will need to register with HMRC and pay tax on your rental income.

Capital Gains Tax

Capital Gains Tax (CGT) is the tax you pay on any profit you make if your property has appreciated in value in the time you have owned it. CGT doesn’t apply to your ‘main residence’. You are allowed to have one property to live in without paying CGT. But you are likely to owe CGT if you sublet your home for any period of time and then sell it.

Accountancy fees

Depending how confident you are with your finances and tax, you might want to budget for some professional help with tax returns.

Maintenance and wear and tear

Don’t underestimate the costs of ongoing maintenance and wear and tear. If the fridge-freezer breaks down, or the boiler needs replacing, it’ll be down to you to pay for this.

Additionally, there are various landlord safety standards you have to meet, including an Electrical Installation Condition Report (EICR). An EICR checks whether the wiring and electrics in your home are safe. The EICR must be carried out by a qualified electrician. If you rent out a property, you should have an EICR every five years (or sooner if specified in your most recent report). If your consumer unit (fuse-box) doesn’t meet current standards for letting purposes, you’ll need to replace it.

You’ll also need to make sure you understand fire safety regulations for landlords, and that your furniture has fire safety labels where applicable.

HM Land Registry

Don’t forget to let HM Land Registry know your new address if you sublet your home, so they have the correct details for any correspondence. Use this COG1 form to inform them.

Additional Resources

GOV.UK: Renting out all or part of your home (subletting)

GOV.UK: Renting out your property

GOV.UK: HMRC email updates, videos and webinars for landlords

Home Ownership Alliance: Becoming an Accidental Landlord

The Accidental Landlord, by Daniel Lees and Martina Lees: This book was published some time ago, so watch out for anything that have become out of date. Nonetheless, it might be helpful for your research on becoming a landlord.