The government has changed the way shared ownership rents can be increased.

This change will apply to the leases of new shared owners who purchase homes delivered through the Affordable Homes Programme and through the planning system via Section 106 developer contributions, with certain exceptions. 

It will also apply to the leases of new shared owners who purchase a leasehold interest in their homes through the Right to Shared Ownership.   

Shared ownership rents can currently be increased once a year by the Retail Prices Index plus 0.5 per cent.

However, the government has committed to phasing out of usage by the end of the decade.

So in future rents for new shared owners can instead be increased once a year by no more than the Consumer Prices Index plus 1.0 per cent.

The government says this reform brings shared ownership rents into line with the limit that normally applies to annual rent increases in other forms of social housing.

Homes England is also amending the Rent Review schedule of its model shared ownership lease to make it clear that registered providers of social housing have discretion to increase rents by less than CPI plus 1.0 per cent.

The government has also reduced the floor for shared ownership rent increases from 0.5 to 0.0 per cent. This means that rents cannot be increased if CPI is minus 1.0 per cent or lower.