How much rent will you pay on shared ownership? Most affordability calculators estimate your costs in the first year. However, you’re almost certainly going to be living in your home for more than a year. Consequently, you’ll probably want to understand how shared ownership rent works over the longer term.
In our previous Q&A on annual rent reviews, we explained how annual rent reviews work. This rent calculator allows you to see how your rent might increase over a 25-year period.
RENT CALCULATOR
STEP 1
Enter your monthly rent. For example, £200, or £250, or £500, etc.
STEP 2
Annual rent reviews generally calculate your rent increase as inflation plus a set percentage. For example, inflation + 0.5%, or inflation + 1% or inflation + 2%.
Check the Rent Schedule in your own lease to find this information. Use the drop-down list to enter the percentage specified in your own lease – 0.5%, 1% or 2%.
STEP 3
Use the drop-down list to explore the effect of different rates of annual inflation on your rent.
You can use the rent calculator to check how a specific average rate of inflation will increase your rent over 25 years – whether that’s 1%, 6% or somewhere in-between.
However, in practice, inflation will be low some years, and higher in others. So you can also use the calculator to try out each of five different scenarios.
RENT CALCULATOR
See how your shared ownership rent could change year by year.
| Year | CPI / RPI % | CPI / RPI £ increase | Additional % | Additional £ | Rent |
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Note: the scenarios are illustrative examples showing how uneven year-to-year inflation can affect long-term rent — they are not official RPI/CPI forecasts or historical records. Always check your own lease's Rent Schedule for the exact review method that applies to you.
NOTES
Don’t forget about service charges…
Don’t forget that your shared ownership rent doesn’t include repair and maintenance costs. Your landlord will charge service charges on top of your rent, as we’ve explained in a previous feature: Initial rent: Q&A with legal expert, Kevin Edwards.
Your landlord might also charge estate service charges (also known as rent charges, or rent charges). Estate service charges are different to service charges. Solicitor, Zahrah Aullybocus, explains what you need to know in this feature: Estate service charges: Q&A with Zahrah Aullybocus
We are extremely grateful for the support of Kevin Edwards, Partner with Geoffrey Leaver Solicitors, in creating this content.
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DISCLAIMER: The information provided on this website is for general purposes only. It is not intended to be a substitute for legal, financial, tax or other professional advice. Everyone’s situation is different so always seek expert advice on any questions you may have.
Featured image: rawpixel.com on Freepik
Additional Resources
GOV.UK – Shared ownership homes: buying, improving and selling
Shared Ownership Resources – SO rent reviews: Q&A with legal expert, Kevin Edwards
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