Property funding agency HomeNow has secured £65m of funding to increase 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 Residence 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 government 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 may also help them escape the rental lure and obtain their homeownership desires by means of a regulated, modern strategy”.
HomeNow presently has 11,000 certified households on the ready listing.
Potter added: “For the 1000’s of hardworking households caught renting and unable to save lots of 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 fogeys, that is additionally a sensible approach to assist grown-up kids take their first step in direction of homeownership, with no need to present a deposit.
“Our clear two-year mannequin flips renting on its head with truthful rents mounted for the entire interval and a portion refunded towards a deposit; no hidden charges and model new, energy-efficient houses that scale back month-to-month outgoings. Each month-to-month cost strikes you nearer to proudly owning your individual residence”.
