On 22 June 2022 the office of national statistics announced that April’s 12-months epi was 9.1% and the RPI was 11.7%. the sectors rent formula for general needs and sheltered housing is based on September’s CPI plus 1%. So we have time to consider the impact of a high CPI in September and either apply a self-imposed or externally imposed rent cap.
However the immediate problem is selling shared ownership properties based upon an annual rent increase of RPI + 0.5%, especially the time when the base rate is also increasing.
Are members already encountering problems with the shared ownership market following the recent increases in inflation and the base rate – and what are actions are you having to take to promote the sale of shared ownership properties?