Family Mosaic rent increase

Hi,

I bought a property on the Shared Ownership scheme with Family Mosaic, and have recently received a letter that the rent will go up.

Can they do this? I vaguely remember that the rent cannot be more than 3% of the property value which you haven’t purchased.

Can anyone shed some more light on this?

Thanks!
Hamid

Leave a Reply

6 comments
  • I haven’t no. Have you? I spoke to another resident who says that they’re allowed to do this. Not sure if that’s true.

    I’ll try to give them a call and wil update you.

  • I spoke to someone over at Forum hse and they said the same thing. I’m yet to speak to FM about it, I am however, pleased with my service charge being reduced.

  • Ok, I finally spoke to Family Mosaic. The rent increase depends on the Retail Prices Index (RPI), which is published every year in October or so. Last year it was 4.6%. Family Mosaic then add 0.5% to it. 5.1% will be the rent increase.

    The rent will go up every year!!!

    Hamid

  • That’s likely to happen. Unless house prices fall back to 2009 – 2010 levels then we might see the rent price stick or even fall?

Further reading