First UK Rent-To-Buy Scheme Agreed

An agreement has been reached that will see the UK’s first affordable rent-to-buy houses built in Plymouth. Plymouth-based housing companies Persimmon Homes and Rentplus have signed an agreement to develop 19 new affordable rent-to-buy homes in the city aimed at tackling the region’s housing shortage and helping people into home ownership. The Rentplus homes are available at up to 80 per cent of local market rent for an agreed period of between five and 20 years. When the tenancy has finished, the occupants are given the opportunity to buy the house and will be given a 10 per cent deposit by Rentplus to do so.  Read more on The Planner website.

CLG Expects Huge Interest in New Affordable Housing 'Product'

The CLG has unveiled details of its latest affordable housing 'product'. The 'Affordable Rent to Buy' is backed by £400 million of government funding, which will be made available from 2015 to 2017 for organisations to pilot the new model. Part 'affordable rent', part 'right to buy', the government believes this new type of housing will attract a wide range of developers "as it combines an affordable rent with the opportunity for a longer-term housing product". Local authorities and other public bodies are, however, not allowed to bid for funding. For the social housing purist, however, it represents the worst of both worlds - high rent affordable housing that is likely to be sold on after seven years. Download details from the GovUK website.