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Shared ownership: how does a rent review affect your monthly cost?

Shared ownership rent is usually reviewed annually. Here’s how rent review caps can work (lease-dependent) and a tiny example of the monthly impact.

Published: 14/05/2026 • Last verified: 14/05/2026

The short answer

Shared ownership rent is usually reviewed once a year, and the rules for the increase are written into your lease. GOV.UK guidance explains that the cap on increases can depend on when you signed your lease and the model lease used.

The practical takeaway: treat a rent review like a predictable “inflation-linked” moving part in your monthly costs, and run a few what-if scenarios so you’re not surprised.

A tiny example

Assume your current shared ownership rent is £450/month.

If your lease allows a maximum increase of 3.1% at the next review (example only), the new rent would be:

  • (£450 × 1.031 = £463.95/month)

That’s an increase of about £13.95/month.

If you’re budgeting for the full monthly cost (mortgage + rent + service charge), you’d add that £13.95 to your expected “year 2” monthly number.

What to check (fast)

  • Your lease date: the cap and formula can differ for older vs newer shared ownership leases.
  • Your review month: reviews are usually annual, but the exact timing is in the lease.
  • What’s in your monthly cost: rent is only one component (service charges can change too).
FAQ
Does shared ownership rent ever go down?
GOV.UK guidance notes that rent can increase at a review but does not decrease. The exact rules are set out in your lease.
Is the rent increase always CPI + 1%?
No. The cap depends on when you signed your lease and the model lease terms used. GOV.UK guidance explains different caps for different lease dates.
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