In a first for Bolsover, 14 households have the opportunity to move from being renters to homeowners, thanks to an unique affordable rent to buy homes scheme offered by Rentplus-UK Ltd and Bolsover District Council working together.
On Friday 17 March, local councillors and MP Mark Fletcher met on the Jones Homes site in Oxcroft Lane to celebrate the new partnership which offers an affordable pathway to homeownership for working families on low or middle incomes. It benefits those unable to save the large deposits required to access other types of housing, including shared ownership and Help to Buy which need 5-10% deposits often amounting to £15,000-£30,000 plus fees. One of the benefits to Rentplus is that poor historic credit is by no means a barrier to acceptance as tenants have a minimum of five years to be able to rebuild their credit history.
Residents move into a brand new home without having to pay an initial deposit. They pay an affordable rent for the duration of their lease which run for a minimum of 5 years and up to 20 years, giving residents time to clear debts and save towards a deposit. At year 5 and at key points during their lease, residents can purchase the property, and Rentplus gifts them 10% of the purchase price towards their savings for their mortgage deposit.
The Bolsover scheme is the first time that Rentplus has worked with Bolsover District Council and house builder, Jones Homes. For Rentplus, the partnership marks another big step in the journey to deliver its award-winning affordable rent-to-buy homes in every English county.
Rentplus is funded by institutional investors, providing affordable rent-to-buy homes with no grant or public subsidy. Properties are usually managed by local housing associations, or the local authority, or Rentplus Homes, a subsidiary of Rentplus-UK. Partners benefit from having an extended tenure offer and increased rental income from the homes.
The successful applicants all have a local connection and were taken from the Bolsover Housing Choice Based Lettings scheme. Most are Key and Essential workers, including social care and NHS staff, enabling them to continue to live and work locally.
Robin Falle, National Director at Rentplus commented: “We’re very excited to be working with Bolsover District Council and to see this offered in Derbyshire. We’re determined to make Rentplus available across every county in the country.”
“Raising a deposit has become the biggest barrier to home ownership – even a 5% deposit is beyond the realms of possibility for those people in society we have come to rely on – our NHS workers, our teachers, our emergency service personnel. Unless they have access to the bank of mum and dad, if they are renting privately, they are unlikely to be able to scrape together the £15,000-£30,000 demanded by high street lenders.
“Moving into a brand new home without paying a deposit, paying affordable rent for five years plus is a real opportunity to save, build a good credit rating and begin to engage with the community.
“Being gifted 10% of the sale price towards the deposit when they’re ready to buy is an added benefit and incentive”.
Cllr Rose Bowler from Bolsover District Council added: “This is our first project with Rentplus and we are delighted to be able to offer this unique route to homeownership.
“Not only will it extend the tenure of properties we offer, but we are now part of an unique nationwide offer, which is going to benefit our key workers and others less able to raise the deposit but able to afford the rent and mortgage.”
“We want to ensure that the delivery of new housing for local people and those moving to the town includes a range of different tenures and price points. Sustainable housing is being built across the district for private sale and affordable housing, including social rent, shared ownership and this new affordable rent to buy scheme with Rentplus. Giving people the ability to rent their home with the option to buy is incredibly important and we’re pleased this agreement with Rentplus is in place.”
“I am delighted to see these new properties made available through the Rentplus scheme which will make them more affordable and more accessible to our new residents.”
Local MP Mark Fletcher added: “Affordable housing and helping local people onto the housing ladder was one of my priorities when I stood for election and I am delighted to have seen this Rentplus scheme today and to have them in Bolsover.
“Bolsover District Council members and staff share a passion with me to help people achieve their homeownership dreams in this amazing part of the world. Having Rentplus here to remove the deposit barrier and help local people become homeowners is a very positive step.”
A tree, part of the Rentplus commitment to the late Queen’s Jubilee Canopy, is to be planted on site.
