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
Me to, it’s a small increase but there wasn’t any explanation as to why, have you got in touch with FM?
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.
I forgot to mention the reason for the rent increase is due to the following reasons:
1. Overwhelming demand for property in the capital.
2. House prices in London have recovered to their 2007 levels.
3. Improvement in the economy, the job situation in the capital is getting better.
To read more, here’s the original post: https://wembley.blogontheblock.com/2011/05/positive-outlook-for-wembley-city/
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?