New partnership created to provide Cambridgeshire’s first rent-to-buy homes

New partnership created to provide Cambridgeshire’s first rent-to-buy homes
Research by Lloyds Bank reveals that Cambridge is currently one of the top five least affordable cities in the UK in which to buy a home, with average prices 9.9 times average salaries

Rent-to-buy home provider, Rentplus, and King Street Housing Society have announced a new partnership to deliver the first rent-to-buy houses in Cambridgeshire.

For Rentplus the deal marks the first step to fulfilling their ambition of delivering over 1,000 affordable rent-to-buy homes in Cambridgeshire by 2020 – this will include housing for local families and key workers. The business has already identified four potential sites in the Fenland and South Cambridgeshire districts to build a proportion of this target. When constructed, KSHS will be responsible for managing the homes, with Rentplus actively seeking out more sites in the region too.

Research by Lloyds Bank reveals that Cambridge is currently one of the top five least affordable cities in the UK in which to buy a home, with average prices 9.9 times average salaries – underscoring the urgent need for more affordable housing in the area. The recent devolution deal between Cambridgeshire and Peterborough has been pivotal for the deal as it contained new funding and powers for the region, allowing the council to shape the type of housing it needs.


Richard Connolly, Rentplus CEO, said: “Our new partnership with King Street Housing Society will form the foundation of our ambitious plans for Cambridgeshire. Our goal is to deliver over 5,000 rent-to-buy homes by 2020 and it is our intention that over a 1,000 of these will be in the region. These homes will make a vital contribution to ensure that the area’s key workers have an affordable pathway to homeownership.

The recent devolution deal means that local officials have more power than ever before to get their housing mix right which means using new types of tenures to meet local housing need.  Rent-to-buy is an innovative model that gives families who are just about managing 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 King Street to make more of these dreams a reality in Cambridge.”

Rentplus’ innovative rent-to-buy model offers an accessible route to homeownership for low income working people who are unable to save for a deposit. In Cambridgeshire these include some of the county’s key workers – like teachers, nurses and care staff – who are priced out by workers in other sectors.  

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 KSHS, who manage the homes and provide housing services for the tenants.

Craig Glasper, KSHS Chief Executive, said: “We are delighted to be working with Rentplus to deliver Cambridgeshire’s first rent-to-buy homes.  At King Street we are always on the lookout for innovative new tenure models that can best meet local housing needs. The Rentplus rent-to-buy homes are exactly this. They will enable our city to meet the homeownership aspirations of families and key workers at an unprecedented scale.”

Cllr Lynda Harford, South Cambridgeshire District Council’s Cabinet Member for Housing, said: “We know that people in the district have a very wide range of housing needs. Clearly, we have people in need of social rented homes as they are not able to, or may not want to, get on the housing ladder. However, we also have a huge number of people who are the squeezed middle. These families often have a good household income but are struggling to afford to buy their first home often because saving a deposit is difficult. We are working really hard to find innovative ways to address the problem and warmly welcome Rentplus’ plans that will help local people in the area.”

Join our mailing list:

Leave a comment



Our Next Event

Buy-to-Let Roadshow April 2017

Buy-to-Let Roadshow April 2017

Crewe - 18/04/2017

Northampton - 19/04/2017

Essex - 20/04/2017

Brighton - 21/04/2017

Register now

Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

view article
ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

view article
NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

view article
Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

view article
Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

view article
Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

view article
Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

view article
James Powell
James Powell 27 Feb 2017

This is a very good news.

view article
DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

view article
Matt
Matt 20 Feb 2017

Is this fake news?

view article
Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

view article
CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

view article

Related stories

More articles from Landlords

Buy-to-Let Roadshow
April 2017

18th-21st April

4 days
7 specialists
4 locations
Free to attend

Click here to register now