A simple tool that finds how much your ground rent will be after RPI moves. It shows change fast. You give the start rent and the RPI numbers. Then it gives the new rent. It helps leaseholders, landlords, and agents plan costs. It can show a one-time rise or a yearly path. You can use it to check bills or to plan budget.
How to calculate ground rent with RPI now
A teacher is showing a class. He says: “Look, we use the index rule.” He gives a real case. A flat has base rent £200 per year from 2015. The RPI then was 250. Today RPI is 320. The teacher asks the learner to find the new rent. We use simple steps. You can follow him and check your number.
Calculate step by step (formula and work)
First know the formula. New Rent = Base Rent × (Current RPI ÷ Base RPI).
- Step one: note base rent. Here it is £200.
- Step two: note base RPI. Here it is 250.
- Step three: note current RPI. Here it is 320.
- Step four: divide current RPI by base RPI. 320 ÷ 250 = 1.28.
- Step five: multiply base rent by that ratio. £200 × 1.28 = £256.
So the new ground rent is £256 per year. The teacher shows the math on the board. The learner sees each part. The process is clear and short.
Why this works. The RPI ratio shows how prices change. You scale the old rent by that rate. This keeps the rent fair and linked to inflation. You can do the same for any date pair.
FAQs
Q: What if RPI lowers?
A: Your rent will drop by the same ratio. Use the same formula.
Q: Can I use CPI instead of RPI?
A: Only if your lease says CPI. Read the lease first.
Q: Do I need yearly RPI values?
A: You only need the RPI tied to the lease dates.
Do one quick check by hand:
Divide the two RPI numbers, then multiply by your rent. This gives you a fast result. Using a calculator saves time and cuts mistakes.