Funding has been secured for Rentplus. It has secured a cash boost in the amount of 70 million pounds from BAE Pension Fund, enabling them to deliver 580 new homes which will allow tenants to rent on an affordable basis with an option to buy, in order to help this generation of buyers.
With this funding, Affordable housing provider Rentplus, will aim to build 5000 new affordable homes by 2020. The hope is that the funding will help tackle the housing shortage crisis, by delivering thousands of new rent-to-buy homes for aspiring buyers, whilst also gifting 10% towards a deposit.
Tenants residing in these properties will have the option to purchase every five years up to the 20th year of renting, thereafter replacing all sold homes to maintain the level of affordable housing.
Chairman of Rentplus, John Gildersleeve, said “The primary reason is lack of affordability, the driver of which is lack of affordable housing supply. We must therefore fix the model and innovative solutions such as Rentplus’s intermediate rent-to-buy are absolutely crucial in a climate where rents are increasing and deposits required to buy continue to climb – reports earlier this year put the average deposit to buy a home at more than £80,000. Our rent-to-buy model is designed to solve both of these issues.”