Shared ownership rent increase seems higher than CPI plus 1%?

[Linzie79]

Does anyone have shared ownership with Paradigm Housing? I have received my rent increase letter and my monthly rent is going from £489 a month to £544 a month. I've worked that out as an 11% increase, but I thought the increase was based on CPI (which would be 3.8%) plus an extra 1%. Could just be my maths but it seems a very steep increase.

When did you enter into the agreement? Have you checked the specific wording in your lease on shared ownership rent increases?

I suspect it’s actually not based on CPI. Shared ownership properties rent is not always capped by CPI, especially those before 2023, it is more common for the older ones (pre 2023) to be based on RPI + 0.5%, so 11% would be right for that.

Thanks for your reply. Yes, you're right, I probably meant RPI, but I have this being at around a similar percentage. I'll check with the housing association. Last year's increase was reasonable, as was the year before, but 11% seems an awful lot

Is that just the rent element or the whole monthly payment? If it's the whole payment check the breakdown and see what's happened with each part. It may be the insurance element skewing it.

You will need to check the exact wording in whatever agreement you signed with them. It should be black and white, there shouldn't be any room for interpretation on something like this. You could also ask then to detail the calculation and inputs they have used to calculate the increase.

She should have had a full calculation with the notification.

It would help if @Linzie79 would return and answer my question above, mind you.