Property funding agency HomeNow has secured £65m of funding to develop its rent-to-own housing mannequin.
With the cash HomeNow is concentrating on constructing 800 reasonably priced rent-to-own houses within the subsequent two years.
The agency operates a two-year Dwelling Buy Plan, the place prospects are entitled to a rental refund on the finish of the interval which can be utilized as a 5% deposit for a mortgage.
Jonathan Potter, chief govt of HomeNow mentioned: “This funding represents a watershed second for UK homeownership.
“We’re serving to remedy a £200 billion market drawback: 880,000 renters earn over £40,000, we can assist them escape the rental entice and obtain their homeownership goals by means of a regulated, progressive strategy”.
HomeNow at the moment has 11,000 certified households on the ready record.
Potter added: “For the 1000’s of hardworking households caught renting and unable to avoid wasting for a deposit, there’s new hope. We all know how irritating it’s for households who do the whole lot proper however nonetheless can’t get on the property ladder.
“For folks, that is additionally a sensible means to assist grown-up kids take their first step in the direction of homeownership, without having to present a deposit.
“Our clear two-year mannequin flips renting on its head with honest rents fastened for the entire interval and a portion refunded towards a deposit; no hidden charges and model new, energy-efficient houses that cut back month-to-month outgoings. Each month-to-month fee strikes you nearer to proudly owning your personal dwelling”.
