In the 1990s it took the average young family three years to save for a reasonable sized deposit. Today, it would take the same family 19 years to accrue the amount they need. It has been reported that in 2017, low-income families had just £95 of savings and investments, excluding pensions, compared with £136 in the same period a year earlier. First-time buyer deposits have risen to a record high of £33,339 from £17,740 in 2007.
This week, the Secretary of State for Housing said: “Everyone deserves a decent, affordable and secure place to call home. When a generation is locked out of the housing market it hurts us as a country”. He went on to say that he wants to see “a Britain where ‘Generation Rent’ can become ‘Generation Own’. A Britain where we turn the vision of a place you call home into a reality.”
Steve Collins, chief executive of affordable rent to buy provider, Rentplus, said: “What the Secretary of State has just described is our very ethos”.
He believes that affordable rent to buy solutions are an answer to all of these scenarios and will help working families on low incomes, or with no savings or debt history to become home owners. The average household income of those using Help to Buy is £51,000 compared to Affordable Rent to Buy families’ £31,700 average income.
Rentplus works in partnership with housing associations to identify local authorities and house developers to accelerate the delivery of thousands of new affordable rent to buy homes across the country – at no cost to the public purse.
Collins added: “Einstein was right when he said that it is madness to do the same thing over and over again and expect different results. Unless the housing sector does something new and embraces market disruptors and private investment, nothing will change: thousands of people will remain locked out of achieving their ambition of owning their own home.
“We have a huge tranche of hard working lower income families, trapped and paying exorbitant private rents or locked into occupying social housing when they could be buying their own home. We desperately need to accelerate delivery and include alternative affordable housing solutions such as our affordable rent to buy proposition as part of a package of viable and practical solutions for these households.
“We know that this change in dynamic to the housing market is not the panacea to the entire housing shortage across the country but it has the potential to shorten waiting lists for local authorities – up to 60% of Rentplus’ families are on waiting lists and 35% move to affordable rent to buy homes from social housing, which allows them to be reallocated to those in greater need.
“We have £2bn of private funding poised to invest in building new homes across the country. All we need is more local authorities to commit to offering local families a rent to buy solution and sign up with us to deliver them.”
Local Authorities who want to engage with Rentplus to deliver the affordable rent to buy option to tenants should contact Steve Collins on 0330 229 0035 or email [email protected]
Notes to editors
Rentplus is the country’s leading affordable rent to buy provider, offering an innovative solution to the UK’s unaffordable housing market. The Rentplus solution is proving popular with housing associations looking to increase their stock without upfront investment. Fully funded by institutional investors.
You can read the Rentplus budget submission here.
Affordable rent to buy offers solutions to all of these.You can read the Rentplus 2018 Budget Submission here
A formal opening of the new office is planned for later in the year.
The Social Housing Green Paper does not commit any new funding, and the proposal for tenants to purchase 1% of their shared ownership home each year will not add to the supply of new affordable homes to buy.
Privately funded affordable housing models, such as Rentplus’ affordable rent to buy proposition, inject new money to provide additional affordable homes for working families who are would-be buyers.
The model provides new homes at an affordable rent with a long-term secure tenancy of 5-20 years, with a gifted cash deposit worth 10% of the property’s market value when tenants come to buy. This fits well with the Government’s commitment in the Green Paper to encourage “innovative models that help tenants that are struggling to raise deposits”.
Under shared ownership, tenants can be responsible for the costs of all maintenance work on their property despite not fully owning it. The Rentplus affordable rent to buy proposition does not come with this liability as tenants are 100% renters and then 100% home owners. During the rental period the property is managed by a housing association partner who takes care of any repair work, so tenants can focus all their money on saving for a deposit.
Chief Executive of Rentplus, Steve Collins, said; “There is huge scope for private funding to be used to develop affordable housing and we call on the Government to encourage more local authorities to consider our alternative model. “The recent changes to the National Planning Policy Framework confirm that models such as Rentplus count towards local authorities’ affordable housing provision, so they have the flexibility to choose a range of tenures to meet local need.”
Rentplus is the country’s leading affordable rent to buy provider, offering an innovative solution to the UK’s unaffordable housing market. Fully funded by institutional investors, Rentplus works in partnership with local authorities and housing associations to accelerate the delivery of thousands of new affordable rent to buy homes across the country.
Steve Collins, Chief Executive at Rentplus, believes that new flexible definitions around affordable housing in the NPPF will give local authorities more confidence to include Rentplus’ unique, affordable rent-to-buy model as part of a range of affordable housing options, to meet local families’ needs and aspirations.
Collins said: “The changes to the NPPF today will, I believe, enable more local authorities to give local working families greater choice – and the first real opportunity to buy their own home.
“One of the key barriers preventing home ownership is raising the deposit, with the average first time buyer now needing to save for 13 years just to get on the property ladder, let alone affordability or adverse debt history. A Rentplus home can help families meet the challenges they face.
“Our unique “rent, save, own” model gives households the opportunity to buy their home in five, 10, 15 or 20 years depending on their financial circumstances and a 10% cash deposit from Rentplus to top up their savings to do so. It’s an unique housing option that offers families the opportunity to buy with a 10% gifted cash deposit. We provide a real chance to make home ownership a reality for families providing stability for many for the first time, giving them somewhere to put down roots within a community, knowing that the opportunity to own is real.”
Over 60% of occupants of Rentplus homes already come from housing waiting lists, with up to 35% of these moving out of existing social housing, freeing up these homes for the most in need on council waiting lists. Rentplus is already assisting local authorities to meet their wider housing obligations, and changes announced today will enable us to help more local families who are unable to access home ownership for a variety of reasons, including inability to save for a deposit due to high private sector rents or a poor credit history, as well as key workers and working homeless households to achieve their dream of owning their own home.
The extended obligations placed on local authorities as a result of the Homeless Reduction Act from 2018 means increased associated costs of temporary accommodation at a time when local authority budgets are severely constrained.
Collins added: “This country has a growing and significant section of private-sector renters who, despite having a good income and being good tenants, find themselves excluded from affordable housing solutions. We desperately need to accelerate delivery and include alternative affordable housing solutions such as our affordable rent to buy proposition as part of a package of viable and practical solutions for these households.
“The Rentplus model is an innovative home ownership tenure which uniquely provides a route into home ownership for those who cannot immediately afford a deposit, widening access to home ownership for thousands of families who otherwise wouldn’t be able to own their own home. Tenants are charged an affordable rent (80% of market rent including service charges), with security of tenure through renewable 5 year tenancies for up to 20 years, enabling them to save more each month, put down roots and to invest in their local communities.”
With a low running costs in addition to the sub-market rent, tenants are able to save whilst they are renting. They also have no repair or maintenance costs as Rentplus’ housing association partners manage the homes and are responsible for looking after the properties.
Rentplus has already enabled families to take their first step towards achieving their aspiration of home ownership in Plymouth and elsewhere in Devon, Dorset, the Cotswolds, Oxfordshire, Cambridgeshire and Northamptonshire. There has been significant demand for the schemes, with one home attracting 275 registers of interest. With a pipeline of 10,000 new homes, with 5,000 due to be in contract by 2020, Rentplus plans to deliver more homes this year in Devon, Somerset, Northamptonshire, Essex, Cambridgeshire, and Milton Keynes.
Mr Pillar, of Pillar Land Securities, and founding director of Rentplus, said: “We are looking to deliver a new range of housing solutions at Butterpark that is an ‘intergenerational living model’ for young aspiring families and individuals who want to own their own home, and an older population looking to down-size and realise equity. Part of the site will be redeveloped and handed back to the Town Council, and will cater for young adults with modest learning difficulties looking to live independently.”
“This pioneering development will see affordable rent-to-buy housing from Rentplus for those local families struggling to get on the housing ladder without a deposit, but also tackling the important social issues of an ageing population – and dealing directly with loneliness and isolation.”
“We are delighted to be working with Ivybridge Town Council in bringing together this ambitious and innovative housing strategy that could be replicated in other areas of the UK,” said Mr Pillar.
“Over the next few months we will be working up our plans, and then engaging with the local community through a public consultation process – to showcase the scheme for local people to make comments.”
“None of this would have been possible without the energy and support of local councillors and staff, and making sure this development can serve the wider community in Ivybridge.”
“In particular we’d like to thank Lesley Hughes, the town clerk, whose resolute determination to secure the site for the council has been unrelenting” added Mr Pillar.
Ivybridge town council bought the Butterpark Care Home last year from Devon County Council, with local council officers spending months in discussions with other local community organisations including the Dove Project and Brook Housing, said town clerk, Lesley Hughes.
Mrs Lesley Hughes, said: “Town councillors were determined to continue the make sure that the public service role for Butterpark, and it had become clear that accommodation for people with learning disabilities was a local concern for families. The proposals from Pillar Land Securities and Rentplus, means vulnerable people will be accommodated in safe housing with secure tenancies, with excellent access to transport and services. We also welcomed the incorporation of the innovative rent-to-buy properties to help families get on the housing ladder in the town,” she said.
Councillor Anthony Khong, and the Mayor of Ivybridge, said: “We are delighted that after a comprehensive procurement process that Pillar Land Securities has been appointed to develop the Butterpark site.”
“The town council approved the bid unanimously and looking forward in working with the scheme developers.”
“Butterpark was a local authority home that provided accommodation for our older residents’, and it will once again from this project – be providing much needed homes in our community,” said Councillor Khong.
County councillor Roger Croad, added: “I believe that the Butterpark scheme represents the very best in partnership working with the county, district and town councils coming together with the third sector and private businesses, and creating a unique model and facility for Ivybridge,” he said.
Craig Robinson head of development for Pillar Land Securities, said: “We are very pleased to be selected as the developer for the redevelopment of Butterpark. Our proposal has been designed to provide an integrated mixed tenure development providing social care units, affordable rent-to-buy and build-to-rent homes. We look forward to working collaboratively with Ivybridge Town Council, key stakeholders, and the local community prior to submission of a planning application.”
Steve Collins, chief executive of Rentplus, said: “We are delighted to be able to play our part in the delivery of this exciting ‘intergenerational living model’ development.”
“Supporting local families into homeownership where they can rent at a discounted market rent for a period of time, and then purchase with the support of a gifted deposit – is ideally suited to a town such as Ivybridge.”
“This will build on the hugely successful schemes recently delivered in the South Hams, including those at Wembury and those under construction at Sparkwell.”
“We congratulate Debbie Holloway and Craig Robinson for another fine example of place-making by the Pillar Land Securities team,” said Mr Collins.
Julie Barnett, chief executive of Tamar Housing, and the housing association founder partner of Rentplus, said: “Ivybridge is a perfect town to demonstrate why Rentplus has such an important role to play in the delivery of affordable rent to buy housing that is currently being rolled out across the country.”
There are a total of 20 properties being built by Cavanna Homes in one of East Devon’s most picturesque spots with 1, 2, and 3 bedroom affordable homes.
The new scheme is designed to be a sympathetic addition to the local area, with detached and semi-detached homes in a variety of styles including brick, render, and timber-cladding, said the chief executive of Rentplus, Steve Collins.
“What a great time to celebrate this new development in East Devon, as part of the activities to promote Rural Housing Week, and the vital contribution that Rentplus is playing in our rural communities by providing more housing choice through our affordable rent-to-buy homes.
“Rentplus is designed for local people who can’t afford to get on the housing ladder, which is particularly true for young people in rural communities across the South West. Rentplus, is the leading provider of affordable rent-to-buy homes, an innovative model which allows people who are otherwise excluded from the housing ladder, usually due to the lack of a deposit, access to homes they can rent now and buy in the future.
“We work with local councils, central government, property developers, and businesses to deliver more homes that meet the range of needs and aspirations in our rural communities and across the country.” said Mr Collins.
Rural Housing Week is an annual event which highlights rural housing issues and showcases housing associations and others’ innovative solutions for tackling them. Its mantra is that the provision of housing – and especially affordable housing – is vital for the survival of rural communities and services.
Rick Williams, chief executive of Cornerstone Housing, said: “The seven new rent-to-buy homes in Woodbury have enabled families to remain in the village they grew up in and to support the primary school and local businesses in the area. Affordable housing is a really important feature of village life.
“Working with Rentplus, we are helping to put the heart back in the rural communities and replace some of the affordable homes lost through the ‘Right-to-Buy” schemes.”
Rentplus, which has plans to build 5,000 new rent-to-buy homes by 2020, offers an accessible route to homeownership for low income working people who are unable to save for a deposit. Under this rent-to-buy model, tenants pay an affordable rent at 80% of market rents (including service charges) in the area, and have the opportunity to purchase their home in 5, 10, 15 or 20 years. Whilst renting, tenants have no maintenance responsibilities, giving them time to save for a deposit and build a credit history that will support mortgage applications. The tenants will receive a 10 per cent gifted deposit from Rentplus when they buy their home. Funded by institutional investors with no grant or public subsidy, Rentplus properties are let on 20-year operating leases to housing associations, like Cornerstone, who manage the homes and provide housing services for the tenants.
More information about Rentplus schemes is available at http://www.rentplus-uk.com/ and Cornerstone Housing’s website: https://www.cornerstonehousing.net/
The new homes comprise a mix of one and two bedroom flats, and two bedroom houses, marks Rentplus’ second scheme in Dorset, with 33 units already complete in Sherborne, West Dorset. Together the schemes signify a significant step toward reaching Rentplus’ target of delivering 5000 affordable rent to buy homes across the country by 2020.
Steve Collins, Rentplus chief executive said that Shaftesbury’s Town Mayor Piers Brown, Leader of Dorset Council’s Partnership Councillor Graham Carr-Jones, Dorset’s Conservative MP Simon Hoare and some of the new occupiers of the properties – will be some of the guests attending this celebratory event.
Mr Collins, said: “We are very excited by this development in Shaftesbury. Our second scheme in Dorset shows Rentplus’ commitment to addressing the problem of affordability in the area and providing an alternative route to homeownership for those who have no other options. As levels of home ownership across the UK hit a 30 year low and the affordability problem reaches crisis point, it is essential that we offer more innovative and flexible housing tenure options, to help hard working people own a home of their own.
“We are helping to build sustainable communities in North Dorset for the future, for people and families with limited prospects of accessing affordable homes, let alone buy a home. Chilmark Gladetenants will have the opportunity to purchase their homes after five, 10, 15, or 20 years and will begiven a 10% gifted deposit by Rentplus to aid their purchase.
“We are very pleased to be continuing our partnership with both Tamar Housing and Persimmon Homes on the development; another excellent example of how through collaboration we can deliver more much needed affordable housing. These new rent to buy homes give the tenants a secure home at an affordable rent, the chance to save money and ultimately purchase their own home in the future. All whilst helping North Dorset District Council accelerate its affordable housing delivery.”
North Dorset District Council are committed to delivering an ambitious house-building programme to boost the development of more quality homes in the county, including a mix of affordable rent-to-buy, open market, privately rented, and affordable rented properties.
North Dorset District Council Leader and Housing Portfolio Holder, Cllr Graham Carr-Jones, said: “Good quality housing of a mix of tenures is vital for the future of our villages and towns.Innovative schemes such as Rentplus help provide local workers and families with an affordable place to live and the opportunity to climb onto the property ladder.
“North Dorset District Council’s Opening Doors housing programme seeks to encourage developments across the spectrum from larger sites to those on a smaller scale through local builders.Chilmark Glade fits in precisely with the range of the schemes we wish to see and will be a valuable addition to the housing stock in Shaftesbury and North Dorset.
“We’re very pleased to work with Rentplus and Tamar Housing in support of this development, and are delighted that the first residents have already moved in.”
Conservative MP for North Dorset, Mr Simon Hoare, said: “This is a very exciting development at Chilmark Glade where 12 homes are available for my constituents to rent now and buy later through this innovative affordable rent-to-buy scheme.
“I am delighted that Rentplus is making its mark on new housing developments around the South West and across England and look forward to seeing more schemes being developed this year and in the future.
“The partnership between Rentplus and Tamar Housing which has enabled a wider range of housing, and particularly affordable rent-to-buy, to be provided at Chilmark Glade means that additional affordable options are available to meet the housing needs and aspirations of local families in North Dorset and to play a role in addressing the housing crisis.”
Julie Barnett, Chief Executive of Tamar Housing, said: ‘Tamar Housing is delighted to work with North Dorset District Council and Rentplus to provide affordable rent to buy homes for local people. House prices are high in Shaftesbury and these homes give local households the opportunity to move into an affordable rented home with the option to purchase the property, after an agreed rental period, with the help of a gifted deposit.
The Chilmark Glade mixed tenure development was first started over 8 years ago and will include more than 650 homes once completed.
More information on Rentplus and Tamar Housing portals: http://www.rentplus-uk.com/ or https://tamarhs.org/rentplusapp/rentplus-shaftesbury/
Video of development: https://youtu.be/jkljhddLtTI