How HPI-linked tenant rewards actually work
Not a vague promise of “sharing the upside” — a specific formula, tied to public data, that pays a tenant in cash for staying and taking care of the property.
Every landlord pitch about “sharing value with tenants” eventually has to answer one question: shares it how, exactly? Here’s the actual mechanic behind Manna Living’s reward, in full.
Where the growth figure comes from
The UK House Price Index (UK HPI) is the official measure of house price change, published monthly on gov.uk using HM Land Registry sale price data, jointly with the ONS. It reports growth at local authority level — so a Manna property in Manchester is measured against Manchester’s actual local index, not a national average that might have nothing to do with what’s happening on that street.
That figure — the annual percentage growth in the local HPI — is the input to the reward. It’s public data, independently published, and not something either the landlord or Manna sets.
The formula
In words: take what the tenant paid in rent that year, multiply it by the percentage the local area’s house prices grew, and the tenant receives 75% of that figure as a cash reward. The other 25% reflects that it’s the landlord’s capital doing the appreciating — the reward shares in the gain without treating the tenant as a part-owner of the property.
Tying it to rent rather than the property’s market value matters for a practical reason: it doesn’t require a landlord to disclose what the property is worth, or commission a valuation every year. Rent is already known to both sides, so the whole calculation is transparent without either party having to reveal anything new.
Worked example
A £1,200/month tenancy, 3.2% local growth
That figure moves with two things: the rent (higher rent, bigger base) and local growth that year (a stronger or weaker property market). Neither side sets it — it’s read off the published index once the year closes.
A discounted rent is worth the same to a tenant whether they stay two months or two years. An annual reward paid for time in the property does the opposite of what a discount does — it gets more valuable to both sides the longer the tenancy runs, which is exactly the incentive a landlord actually wants.
Frequently asked
What if local house prices fall that year?
If local HPI growth is flat or negative, the reward for that year is zero rather than negative — a tenant is never asked to pay money back because the local market dipped.
Is the reward guaranteed?
It’s a formula tied to public data, not a fixed guaranteed sum — the actual amount depends on that year’s published local HPI growth, and specific terms are set out in the tenancy agreement rather than promised in the abstract. This page explains the mechanism, not a financial guarantee.
Which HPI figure counts — national, regional, or local?
Local authority level, where the published data supports it, so the figure reflects the specific area the property is actually in rather than a national blend.
When is it paid?
Annually, once that year’s local HPI figure for the relevant period has been published and the tenancy year has closed.
See it on your own numbers
Join the waitlist and we’ll walk you through what an annual reward could look like on your property, using the real local HPI figures.
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