Renting your shared equity home
If you need or want to move out of your shared-equity home but don’t want to sell it, you can usually rent it out under the S106 agreement. You should look at your S106 agreement for more information.
The rent you can charge is usually specified in your S106 agreement. It is generally 20% less that the current market rent.
As a guide, we would use the local housing allowance rates as the maximum rent you can charge. The maximum rents are currently as follows.
|Size of property||Maximum weekly rental|
This weekly rental charge should include any service charge or management fee. Before you can rent the home out, we would have to check that they are eligible to rent an affordable home. We would need details of who they are, their income, savings and so on to make sure they meet the criteria. As a guide, the tenants should not be earning more than the total average income for the area.
|Area||Average household income (2018/19)|
The tenant must not:
- own or have an interest in any other property (unless they need to move due to a relationship breakdown); or
- have substantial savings.
We can contact the tenant if they are not happy giving this information to you. You can advertise the property with a lettings agency, but any fee for doing this cannot be added to the rent.
We will not get any references for potential tenants. This would be up to you. Our involvement would only be to check that the prospective tenant meets the eligibility criteria. You should check with your mortgage company that you can rent the property out as some mortgage deals do not allow this.
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