Back in 2016, Rentplus set out to make home ownership easier for working families.
In 2021, it delivered on that promise and turned its first renters into home-owners .
Now, we’re ready to deliver this at pace, and are poised to grow at an exponential rate. Our team is ready for the challenge.
We’re looking for housing developers, housing associations and local authorities across the North to join us.
Rentplus is a simple premise: let people move into a home without a deposit; help them to save and build good credit rating. When they are ready to buy, gift them 10% of their home’s value and help them to get a high street mortgage. They’ll be purchasing 100% of their home and have a secure 10-20% equity.
It’s a simple premise embraced by some forward-thinking councils and housing assoc-ations from day one and which, in 2021, was proven with the first renters buying their home – the same ones who, back in 2016 could not even save a deposit.
So many of our key and essential workers, and other hard-working individuals working in lower or middle income roles, dream of owning their own home. Government’s own figures demonstrate this.
Successive government schemes have been launched but fail to help the very people they purport to support.
Shared Ownership, Help to Buy and First Homes all demand large sums in deposits. All fail to remove that barrier.
The common thread for all of these families is their inability to save the very large sums of money needed to access a mortgage. It may be that they are paying large sums in private rent, and for many, servicing a mortgage would be cheaper. Some still have student debt. All are unable to overcome the deposit barrier.
But the deposit conundrum can be beaten!
Rentplus-UK started as an idea to remove the deposit barrier. There were some true believers in the efficacy of the model, and a few doubters, but the ambition and drive of those initial innovative local authorities and housing associations, willing to try something different, has been proven right.
Late last year, Rentplus saw the culmination of their vision when those first renters became homeowners.
Those first tenants moved into brand-new Rentplus homes with no deposits in 2016 on a 5 year agreement. They paid affordable rent (80% of local private rents typically) to our housing association partners, giving them the ability to save at least the 20% difference. For many that was about £200 a month.
The following years saw their savings grow. Boosted by the 10% gifted sum from Rentplus on purchase, they were able to access high street mortgages. Their good deposits allowed them to fund the purchase of 100% of their home. Some had 20% equity from day one.
Rentplus’s affordable rent to buy homes not only provide a route to home ownership for hard working people on low and middle incomes but they also create diverse, stable comm-unities across the country. Our residents talk about how they feel part of a community for the first time. And from day one, even when renting, it’s “theirs”.
One of the new homeowners said: “Owning your own home makes a massive difference. You start thinking about it as “your area” and it’s all about “our community. Before Rentplus, we never became part of the community we lived in – now we definitely feel we are.”
The model has been embraced by local authorities across nearly 30 counties in England. Rentplus has a pipeline of over 23,000 homes.
The challenge now is to deliver our homes at pace to keep up with demand. Nearly every scheme is oversubscribed, many, many times over.
As well as housing developers, Rentplus is actively looking for housing associations who want to offer an increased tenure and see their income boosted with low-risk external investment, and local authorities who want to see their waiting lists reduced.
Our team is ready to meet the challenge. Will you join us and turn renters into homeowners?