Rent to Buy
Rentplus, an innovative business providing rent-to-buy homes, and King Street Housing Society (KSH) have announced a new partnership to deliver new rent-to-buy homes in the East of England. Our first scheme will be in Doddington in partnership with Fenland District Council.
The 4 two and three bedroom homes will be constructed by Larkfleet Homes, and will form part of their Doddington Grange development on Wimblington Road in Doddington. KSH will manage the Rentplus homes once they are built and will support the new occupants seeking to buy them in the future.
“Hot on the heels of the Government’s announcement that they are keen to bring more rent-to-buy homes to local communities, we are pleased to be delivering exactly that. These properties will be the first rent-to-buy homes in the area; we’re delighted to be working with Fenland District Council as they represent a significant step-change towards providing mixed-tenure communities that support people with a range of housing needs. Our innovative model gives families who are just about managing the opportunity to fulfil their dreams of homeownership while offering them the safety and security of a long-term tenure. We believe that today’s announcement is the first step in a much longer journey with King Street Housing which will hopefully see us working together long into the future. I hope that this first scheme will enable us to deliver many more affordable rent-to-buy homes across the district and the East of England.” – Richard Connolly, Rentplus CEO
“This is a great example of how, by working together, we can bring new types of property to the area. This initiative offers a fantastic opportunity for people to move into Home Ownership following a period of renting their home at an affordable level.” – Craig Glasper, KSH Chief Executive
Rentplus 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 intermediate rent which is substantially lower than market rents in the area, and have the opportunity to purchase their home in 5, 10, 15 or 20 years. This includes service charges, and with no maintenance responsibilities, occupants have 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 do so. Funded by institutional investors with no grant or public subsidy, Rentplus properties are let on 20-year operating lease to King Street Housing Society, who manage the homes and provide housing services for the tenants.
Situated within easy reach of Cambridge and Peterborough, Doddington Grange is situated within the village of Doddington, a vibrant traditional community situated in the heart of Cambridgeshire Fenland. Doddington has a real village feel with plenty going on and numerous clubs and interest groups. Each year, it puts on a carnival and sports day -no mean feat for a small neighbourhood!
There are many footpaths in and around the village from which you can soak up the fantastic Fenland views. There's also the RSPB reserve at Ouse Washes and the Welney Wildlife centre nearby.
For families there are numerous primary and secondary schools both very locally and further afield in nearby March, Wimblington and Chatteris. Further education is catered for by centres in March, Ely and Cambridge. For commuters, the nearby towns of Ely, Peterborough, Kings Lynn, Cambridge and Huntingdon are all within easy reach by major roads. Nearby March has its own rail station which connects with all the main routes.
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What Is Rentplus?
Rentplus is new type of affordable housing aimed at people who aspire to home ownership.
Each Rentplus property will be on the scheme for an agreed period of between 5 and 20 years. At the end of the agreed period each home is sold, preferably to the existing tenant with a gifted deposit.
How Does Rentplus Work?
On each Rentplus site, homes are divided up into four groups, each is on the scheme for an agreed period of between 5 and 20 years as shown below.
25% of properties will be Rentplus homes for 5 years
25% for 10 years
25% for 15 years
25% for 20 years
Initially, you will be given a five year tenancy, and this will be renewed every five years until the property reaches the end the agreed period.
When your property reaches the end of the agreed period you will be given the opportunity to buy your home. Rentplus will also give you a deposit of 10% of the value of your home as a gifted deposit to add to your own savings. You can get advice on how big a deposit you may need by clicking on the links on the right.
Who is Rentplus Suitable for?
Rentplus is aimed at people who are looking to move into home ownership. You might be renting privately, living with relatives or renting from a housing association or Council. Rentplus will be especially attractive to couples and younger families who will be able to get a mortgage in 5 to 20 years.
+ You will need to show that you can save a deposit over a number of years, that you will be able to get a mortgage and that you are committed to home ownership.
Rentplus would be suitable for people who
- Are in work or in training
- Have been saving for a deposit or are able to do so
- Have a good credit history
Rentplus will especially suit people who are looking to buy a home but aren’t able to do so yet, as you will get the chance to save up for a deposit while living in your new home. You might be looking to get a better job, training for a career or look for promotion.
What Type of Home Could I Get?
Rentplus sites may offer a variety of homes, with each site being different. You may be able to get a home with up to one bedroom larger than your family needs now, although this will depend on availability and whether you can afford the rent.
At the start of the tenancy the rent will be set at an affordable rent, which is 80% of the market rent. This will only be increased by the Consumer Prices Index plus 1% every year. At the end of each 5 year tenancy the rent will be reset to 80% of the market rent again. There is no deposit but you will be expected to pay the normal household bills.
Do I Have To Buy My Home or Can I Chose Any Home?
Rentplus is set up to help you buy your home. You won’t be able to trade or swap with anyone else or buy a different home.
What Happens at The End of The Agreed Period?
We hope that you will be able to buy your home at this point. We will help you to find a mortgage and support you through the purchase of your home. If you can’t buy your home you may be able to extend the agreed period, depending on availability.
If we can’t give you any longer on the scheme and you can’t buy your home we will support you to find alternative accommodation.
What If I Want to Buy My Home Earlier Than The End of The Agreed Period?
This may be possible. If another family is unable to purchase their home you will be given the chance to buy your home instead.
Am I Guaranteed That I Can Stay Until The End of The Agreed Period?
So long as you pay your rent, do not cause a nuisance, look after your home, there are no significant changes in your family circumstances and you don’t breach your tenancy you will be able to remain in your property during the agreed period. You may, however, leave at any time by giving us 4 weeks notice in writing.
Do I Have The Same Rights As Other Social Housing Tenants?
Broadly yes, you have the same rights. Your landlord will be responsible for carrying out repairs and looking after any communal areas. You will need to seek permission from KSH before doing the following:
- take in lodgers
- run a business from your home
- keep pets
- make improvements to your home.
You won’t have:
- The right to exchange with another social housing tenant
- The Right to Buy or the Right to Acquire
If you are moving from social housing you will be losing some rights. You should seek advice about this from the CAB or other housing advisor.
How Do I Apply?
You can register with us (for most 5 year Rentplus properties) or your local HomeChoice service (for all other Rentplus properties).
To register your interest please contact KSH on 01223 312294 or complete our online form
What Happens If I Apply?
First we will check whether your meet the basic criteria.
- That you are working or in training
- That you have no adverse credit history
- That you do not have high debts.
We will then visit you in your home to ensure that the details you have given are correct. We will expect to see proof of
- Your credit history
- Your employment or training contract
- Your income, such as wage slips and benefit books
- Your debts and savings, including bank statements
- Your outgoings, such as bank statements
- Your family make up
We will check to ensure that you can afford the rent now and save for a deposit in the future. We will help you to understand what you will be expected to do to have a Rentplus home and how you can prepare for home ownership.
We will then assess your application, and if you are successful we will offer you a property, with a maximum time as a Rentplus home between 5 and 20 years.
Rentplus website http://rentplus-uk.com/