Our partners

Local authorities

Rentplus offers a National Planning Policy Framework (NPPF) compliant model, delivering affordable housing for rent and other affordable routes to home ownership.

We offer a way for Local Authorities (LAs) to increase the choice of affordable housing on new developments, reduce their waiting lists without drawing on their budgets or government funding, and nurture stable, diverse communities. LAs increase the stock and choice of attractive, genuinely affordable housing, reducing waiting lists without drawing on their own budgets or government funding.

How it works

We buy new, attractive, affordable homes from developers under section 106 and let these on 20-year full repairing leases to Registered Providers (RPs), which manage them on our behalf.  Our rent-to-buy model is particularly suitable for key and essential workers, allowing them to put down roots in their community and contribute to the local economy.

A local lettings plan is agreed to ensure local housing needs are met and LAs work with RPs to allocate the homes to people on their local housing waiting lists who want to get on the property ladder.

Successful applicants move in and pay an affordable rent for between five and 20 years. This gives them time and more disposable income to save towards a deposit, and rebuild their credit history.

At the end of the tenancy they can buy 100% of their home at the market value. When they do, so we give them 10% of the value as a gift to boost their deposit.

The benefits

If the home is sold on the open market the LA receives 7.5% of the price to invest in new affordable homes. We can also replace sold homes on a one-for-one basis, subject to local planning, which become available to new Rentplus tenants.

By adopting Rentplus, councils can increase their social housing stock and choice of attractive, genuinely affordable housing. In some areas, up to 50% of Rentplus residents move from social housing, which frees these up for reallocation. The majority come from local housing waiting lists, which means councils can reduce their own lists without drawing on their own budgets or government funding.

All our homes meet and often exceed government building and energy standards and are tenure blind – they look just like the surrounding homes.  Our due diligence on all our partners includes financial, geographical and governance checks to ensure we only work with the best.

In 2021, the first Rentplus sales saw 100% of the planned year 5 homes sold to Rentplus tenants: this compares with just 7% for the government’s Rent-to-Buy scheme.

Rentplus turns renters into homeowners.  Contact your local team today.

Percentage of our residents who moved out of social housing
30%
Percentage of residents come out of local authority choice-based lettings (CBL) schemes
30%
Percentage of the price LA receives if the home is sold on the open market
7.5%
Percentage of the tenants buying their home as planned at year 5
95%

Our rent-to-buy model

  • What is Rentplus?

    Rentplus is a private company operating in the social rent and affordable homes sector. We work with carefully chosen partners who build and manage our homes and support our residents in their local communities.

  • How does Rentplus work?

    We buy affordable homes under section 106, which are let at an affordable rent on five, 10, 15 and 20-year leases to tenants who want eventually to buy their own home. The homes are let and managed by Registered Providers (RPs) in association with Local Authorities (LAs). At the end of the lease and when the tenant is ready to buy their home we give them 10% of its value to put towards their deposit.

    If a local authority agrees, we can replace homes sold on a one-for-one basis to maintain an agreed number of affordable rent-to-buy homes in any LA area.

  • Who lives in a Rentplus home?

    Rentplus affordable homes are rented to people in work or training with an annual household income of less than £80,000 and who want eventually to buy their own home. Our residents are often key and essential workers with a link to the local area. They often move from private or social rented accommodation where they found it hard to save the deposit required by mortgage lenders. The average household income of our residents is £31,600 compared to over £50,000 for the government’s Help to Buy.

  • What are the benefits of working with Rentplus?

    • LAs working with Rentplus increase the stock and choice of attractive, genuinely affordable housing, reducing waiting lists without drawing on their own budgets or government funding. This helps them deliver their statutory obligations around social housing at no additional cost to the public.
    • Rentplus offers a National Planning Policy Framework (NPPF) compliant rent-to-buy model, delivering affordable housing for rent and other affordable routes to home ownership. In Annex 2 of the NPPF, Rentplus is classed as both Affordable Housing (A) and an Affordable Route to Home Ownership (D). This is supported by government statements and legal counsel, all available to view.
    • We agree with the LA a local lettings plan to ensure local housing needs are met.
    • All our residents were either living in social housing, were on the local housing waiting list and/or had a local connection. When they move into a Rentplus home from social housing their previous home can be reallocated to someone in greater need; if they were on a housing list, their moving eases pressure on the list. Some 30% of our residents have moved out of social housing and a further 30% come off local authority choice-based lettings (CBL) schemes.
    • Lower and middle-income households who may be excluded from traditional affordable-rent schemes qualify for Rentplus homes, bringing stability and diversity to local communities.
    • Our model is suitable for key and essential workers, allowing them to put down roots in their community and contribute to the local economy.
    • If the home is sold on the open market the LA receives 7.5% of the price to invest in new affordable homes.
    • Our first sales are scheduled for March 2021 when we expect between 80% and 100% of our residents to buy their home. This compares with just 7% for the government’s Rent-to-Buy scheme.
    • Our sell one, buy one, rent one model means LAs can maintain the number of attractive affordable homes in their area independent of the housing cycle.
    • All our homes meet and often exceed government building and energy standards and are tenure blind – they look just like the surrounding homes.
    • Our due diligence on all our partners includes financial, geographical and governance checks to ensure we only work with the best
  • Where does Rentplus operate?

    Rentplus wants to operate in every county in England. We started in Plymouth, Devon, working with Plymouth Council and Tamar Housing, and have spread quickly to offer our affordable rent-to-buy homes in Dorset, Somerset, Wiltshire, Oxfordshire, Northamptonshire, Cambridgeshire, Hampshire and Berkshire. We currently have more than 18,000 homes in our pipeline across the country – houses we are either bidding for or have secured.

    If you don’t yet work with Rentplus and would like to find out more contact us here.

  • Are Rentplus homes compliant with the NPPF definition of affordable housing?

    Yes. We have legal and planning advice that confirms that Rentplus is NPPF compliant. Reports setting this out can be provided on request. Current planning consultation includes proposals to incorporate affordable rent-to-buy within the affordable housing contained within NPPF and Starter Homes definitions.

  • How are Rentplus properties allocated?

    Rentplus works with the LA to agree how it wants our RPs to identify and allocate our homes. Different LAs set out different routes to achieve our shared objectives. These may include:

    • Local Choice Based Lettings schemes
    • HomeBuy Agencies
    • Shared Ownership waiting lists
    • Local lettings plans
    • Local connection requirements
    • Local advertising

    Our RPs assess all applications for Rentplus homes to make sure they meet our eligibility criteria as well as fulfil the allocation process agreed with the LA. We can supply LAs with reports about whom we have housed in Rentplus homes.

  • What happens if the Rentplus tenant cannot buy their home?

    Tenants are aware when they move into a Rentplus home that they have a five-year renewable tenancy and that if they breach the terms of their AST or are unable to buy the property at the appropriate time they will be required to move at the end of the tenancy period. The managing RP will undertake a review with the tenant year before the tenancy expires to assess the progress towards the planned purchase date.

    Should the tenant be unable to buy, the RP has a number of options to help the tenant including:

    • Buying the property and offering it as a shared ownership or rented unit to allow the existing tenant to remain in their home.
    • Direct matching the tenant into one of their other properties.
    • Working with local private landlords to find an alternative home.

     

    The managing RP will do its best not to make the household homeless and the responsibility of the LA.

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