FAQs for our Shared Ownership Cost of Living Credit
At Legal & General Affordable Homes, our residents are at the heart of everything we do which is why we’ve created our Shared Ownership Cost of Living Hub to answer any questions you may have about your costs. Full of information and resources to help you as a Shared Owner, we want to support you in every way we can.
Across the country, costs are increasing and we’re all feeling the impact. We want you to know that we’re here to support you in a variety of ways. Have a read of our FAQs and get in touch with your Management Provider if you have any further questions.
How much is my rent going to increase? Why is it increasing so much?
The rent you pay on the unowned share of your property will increase by 13.1% from 1 April 2023.
Under the terms of your lease your net rent can increase each year by Retail Price Index plus 0.5%. Inflation has risen at an unprecedented level and that has directly affected rents across the sector. Rent calculations are influenced by wider economic factors like retail price inflation and therefore can vary each year.
However, at Legal & General Affordable Homes we recognise that meeting living costs is a real challenge for some people, and we are committed to supporting residents during this difficult period. All Shared Ownership residents will receive a voluntary monthly rent credit payment – they do not have to apply separately and the credit does not have to be paid back.
Do I have to amend by Direct Debit? Is there anything I need to do to ensure I receive the credit?
No – we will take care of everything for you so there’s nothing you have to do.
How will Legal & General Affordable Homes help with the rent increase cost?
To help control increased costs and outgoings, we are making a voluntary contribution to help Shared Ownership residents in the form of a 6.1% monthly rent credit.
This credit will be applied to your rent account for one year starting 1 April 2023. This means our Shared Ownership residents will experience a rent increase of no more than 7% – in line with the government mandated social rent cap.
Will residents get a contribution towards service charges and other costs too?
The monthly rent credit will apply to net rent only – it will not be applicable towards service charges or any other associated costs.
How will I receive the monthly credit?
The monthly rent credit from Legal & General Affordable Homes will be credited to your rent account from 1 April 2023 for one year.
Do I have to pay the rent credit back?
No, you do not have to pay the monthly rent credit contribution back. It will credited to your rent account for a year starting 1 April 2023, when the new rent level kicks in.
How long will LGAH pay the monthly rent credit?
We will apply this credit of 6.1% for one year, starting 1 April 2023. It will be credited directly to the rent accounts of the Shared Ownership residents with LGAH.
What happens after 1 April 2024?
The monthly rent credit contributions will end on 1 April 2024 when we re-evaluate the yearly rent increase. We will be in touch in early 2024 to discuss the future changes in rent.
I am an Affordable Rent tenant with LGAH. Am I eligible?
The voluntary monthly rent credit payment is only available to Shared Ownership residents. Rent rises for tenants will be capped at a maximum of 7%.