The National Housing Federation’s Home Truths report earlier this year revealed that house prices across Northamptonshire are eight times the region’s average salary of £26,936 per annum. The research also showed that a household would need an income of £49,365 to afford a standard mortgage in the region. This underscores the fact that, for many families in the area, homeownership will remain a pipedream unless innovative new models like affordable rent-to-buy are made available.
Rentplus is already in discussions with a number of local authorities and developers across the region to identify sites for delivering volume of this innovative affordable housing tenures; the partnership with Wellingborough Homes is a significant step forward in making this a reality. Areas they are targeting include Northampton, Wellingborough, as well as nearby Milton Keynes and Bedfordshire
Richard Connolly, Rentplus CEO, said: “Our new partnership with Wellingborough Homes will form the foundation of our ambitious plans for Northamptonshire. These much needed new homes will make a vital contribution to helping the area’s working families onto an affordable pathway to homeownership.
“The affordability of housing is an issue across the country, but the Home Truths report shows just how hard it is for working families to get on the ladder in Northamptonshire. Rent-to-buy is an innovative model that gives people the opportunity to fulfil their dreams of homeownership while offering them the safety and security of a long-term tenure. We look forward to working with Wellingborough Homes to make more of these dreams a reality in the region.”
Jo Savage, Wellingborough Homes Chief Executive, said: “We are delighted to be working with Rentplus to deliver Northamptonshire’s first affordable rent-to-buy homes. At Wellingborough Homes we are committed to exploring innovative tenure models which offer a range of housing options to meet localpeople’s housing needs and aspirations. Our new partnership with Rentplus to manage their affordable rent-to-buy homes fits exactly with this ambition. We’re very pleased that we will be the first housing association in Northamptonshire to be offering this innovative housing option and look forward to working with Rentplus to deliver many affordable rent-to-buy homes across the county.”
Rentplus’ affordable rent-to-buy model offers an accessible route to homeownership for ordinary working people who are unable to save for a deposit or access other forms of affordable home ownership.
Rentplus tenants pay an affordable intermediate rent and have the opportunity to purchase their home in 5, 10, 15 or 20 years with a 10% gifted deposit from Rentplus. The rental period gives Rentplus tenants time to save and then buy their home. Rentplus is funded by institutional investors, providing affordable rent-to-buy homes with no grant or public subsidy; its properties are managed by local housing associations, like Wellingborough Homes, with 20-year operating leases.