Rentplus

External Link
Visit Site

Affordable rent to buy

Rentplus’ affordable rent to buy model offers an accessible route to home ownership for those who are currently excluded, with the opportunity to rent, save and own.

Tenants pay an affordable rent (the lower of 80% market rent or LHA cap including service charges), with no repair and maintenance costs, and low running costs, meaning they are able to save towards their deposit.

Rentplus homes are disposed of over 20 years at 5 yearly intervals to the incumbent tenant with a 10% gifted cash deposit.

National Context

Government’s White Paper key objectives:

  • Affordability
  • Security of tenure
  • Leveraging institutional investors
  • Additionality
  • A broader range of developers and tenures

Two of the five principles from the Social Housing Green Paper 2018:

  • Safe and decent homes which is fundamental to a sense of security, and our ability to get on in life
  • Building the social homes that we need and ensuring these homes can act as a springboard to home ownership
Rentplus across the country

July 2018 changes to National Planning Policy Framework definitions of affordable housing confirmed that Rentplus is an NPPF-compliant affordable housing tenure.

This has given more local authorities the confidence to include our model within their housing policies.

With a pipeline of new homes, we’re continuing to work creatively with local authorities.

  • Established homes and planned new housing
  • 2018/19 funded new homes
rentplus-map
Key Issues
UK need

300,000 per annum

UK average

137,000 per annum

The UK needs to build at least 300,000 homes per annum of all types just to meet current demand – it has been building just 137,000 on average over the past 3 decades.

Reported since April 2010

333,000 affordable homes

Delivered in 2018

43,000 affordable homes

The government reports that since April 2010, c333,000 affordable homes have been delivered but in the past year, the number of affordable homes built has been only 43,000.

1.2 Million Households Waiting

Inability to save a deposit is one of the biggest obstacles to home ownership.

Soaring prices and rising rents, not enough of the right homes in the right places creates exclusion and insecurity of tenancy, waiting lists growing to over 1.2 million households.

Government Reduction

Significant reduction in government grant funding for affordable housing construction.

We need a flexible approach to tenure and ownership: creative solutions and a different mind-set are key to avoid doing what we’ve always done.

Rentplus Solution

Rentplus’ affordable rent to buy model offers an accessible route to home ownership for those who are currently excluded, with the opportunity to rent, save and own.

Makes available existing social and affordable homes for those in need.

Fully-funded solution requiring no Government funding and bringing substantial institutional funding into affordable housing.

Rentplus: How does it work?

Fund

Homes funded by institutional investors

Build

Homes built to building regulations and Rentplus standards

Lease

Rentplus homes leased to local partner Registered Providers (RP) for up to 20 years

Let

Homes let at Affordable Rent (80% of market rent or LHA including services charges) on 5 year renewable ASTs.

Buy

25% of Rentplus homes are sold to tenants if they choose to buy at years 5, 10, 15 and 20 with a 10% gifted cash deposit

Replace

As homes are sold, Rentplus intends to replace them to maintain numbers of affordable homes
How will it assist LA's & NPG's?

Helps deliver homes for those whose needs are not met by traditional tenures by delivering a third tenure which assists those local households who aspire to home ownership, but don’t have access to a deposit.

Assist LAs, parishes and Neighbourhood Planning Groups funding homes in rural communities which otherwise may not be delivered, by levering in institutional investment.

Freeing up existing homes by prioritising local people and those in existing social housing.

Case Study

E and F are both 20, they grew up in Wembury, Devon and were both living with E’s parents. F was heavily pregnant and they thought the only way they could live independently would mean that they would have to rent privately outside of the area.

They registered on the local authority’s housing waiting list and applied for a Rentplus home in the same village. With Rentplus, tenants pay an affordable intermediate rent – 80% of market rents or local housing allowance whichever is lower – giving E and F the opportunity to save significantly more than if they were paying market rents even outside their area.

They have the opportunity to buy their home at either 5, 10, 15 or 20 years depending on their circumstances and Rentplus assist them with their purchase with a 10% gifted deposit.

They love their new home and living close to family and friends. They are both working full time and able to save for a deposit and feel this would have been unlikely if they had to rent privately.

Other Sectors
MEETING THE NEEDS OF THE DOWNSIZING - YOUR PATHWAY TO DOWNSIZING
Learn More
INTERGENERATIONAL LIVING MEETING - HOUSING NEEDS ACROSS GENERATIONS
Learn More
Intergenerational Living- MEETING THE NEEDS OF YOUNG ADULTS WITH LEARNING DISABILITIES
Learn More
AFFORDABLE SELF-BUILD - YOUR PATHWAY TO BUILDING YOUR OWN HOME
Learn More
MULTIGENERATIONAL LIVING - BEING MORE CREATIVE WITH OPEN MARKET HOUSING
Learn More
SHARED OWNERSHIP EMPLOYMENT UNITS - SUPPORTING THE GROWTH OF YOUR BUSINESS
Learn More
COMMUNITY OWNED AFFORDABLE HOUSING - DELIVERING HOMES COMMUNITIES NEED
Learn More