Rents for these homes are set depending on the following:
– The market rate for the home
– The amount of unsold equity (so if a customer buys a 40% share, we calculate the rent based on the 60% we still own).
– Our agreement with Homes England for the scheme. We set initial rents between 2.75% and 3% of the unsold equity, based on this agreement.
If a home is worth £300,000 and the customer purchased a 50% share we calculate the rent as follows:
3% of £150,000 = £4,500 (this is the annual rent)
The monthly rent is therefore £4,500 divided by 12 = £375 per month
There might be an additional service charge, separate from your rent which funds services like communal areas in flats, grounds maintenance and cleaning. If the road or street lighting isn’t adopted by the council it will also include a fund to replace them.