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Rentplus and Wellingborough Homes sign ambitious deal to deliver rent-to-buy homes in Northamptonshire

Rentplus and Wellingborough Homes sign ambitious deal to deliver rent-to-buy homes in Northamptonshire

11th April 2017 Rentplus, an innovative business providing rent-to-buy homes, and Wellingborough Homes, today announce a new partnership to deliver affordable rent-to-buy houses in Northamptonshire. The new homes will offer an affordable pathway to homeownership for working families in the area. 

The National Housing Federation’s Home Truths report reveals that house prices across Northamptonshire are eight times the region’s average salary of £26,936 per annum. The research also showed that a household would need an income of £49,365 to afford a standard mortgage in the region. This underscores the fact that, for many families in the area, homeownership will remain a pipedream unless innovative new models like rent-to-buy are made available.

 

Rentplus are already in discussions with a number of local authorities and developers across the region to identify sites for delivering a suitable volume of this innovative affordable housing tenures.

 

Richard Connolly, Rentplus CEO, said: “Our new partnership with Wellingborough Homes will form the foundation of our ambitious plans for Northamptonshire. These much needed ne w homes will make a vital contribution to helping the area’s working families onto an affordable pathway to homeownership.

 

“The affordability of housing is an issue across the country, but the recent Home Truths report shows just how hard it is for working families to get on the ladder in Northamptonshire.  Rent-to-buy is an innovative model that gives people the opportunity to fulfil their dreams of homeownership while offering them the safety and security of a long-term tenure. We look forward to working with Wellingborough Homes to make more of these dreams a reality in the region.”

 

Rentplus’ innovative rent-to-buy model offers an accessible route to homeownership for low income ordinary working people who are unable to save for a deposit.

 

Rentplus tenants pay an affordable intermediate rent and have the opportunity to purchase their home in 5, 10, 15 or 20 years. The tenants will receive a 10 per cent gifted deposit from Rentplus when they do so. This gives them time and an additional incentive to save for a deposit. Rentplus is funded by institutional investors with no grant or public subsidy, its properties are let on 20-year operating leases to housing associations, like Wellingborough Homes, who manage the properties and provide excellent housing services for the tenants.

 

Jo Savage, Wellingborough Homes Chief Executive, said: “We are very excited by this new partnership with Rentplus which is allowing us to build on our already ambitious plans to provide new affordable homes within Northamptonshire to help tackle the housing crisis. Rentplus is an excellent initiative enabling tenants who may have otherwise been unable to get onto the property ladder. This partnership supports our commitment to provide great homes and value for money services and we look forward to working with Rentplus and developing this product within Northamptonshire.”