Newcastle city council claims to be the first local authority in the UK to launch the rent-to-buy scheme allowing tenants to save for a deposit to get on the property ladder.
A development called Reestones Place saw the launch of the scheme earlier this year.
The two, three and four-bedroom new build homes in Kenton were offered at a rent of 80 per cent of market value on a specially designed five year fixed tenancy to allow residents to save the deposit they need to secure a mortgage and buy the home at the end of the rental period.
The properties are effectively regarded as privately let and are managed by Your Homes Newcastle, the city council’s housing arms-length management organisation.
A council spokeswoman says: “Housing is a priority for the council and we’re always looking for new and innovative ways of delivering a range of housing options in the city.
“We know that the dream of buying a home can seem out of reach for some people so when Homes England funding became available for local authorities to deliver Rent to Buy housing we were confident that we would be able to help some of those people to realise their dreams.
“We knew that, as the first council to build Rent to Buy homes, other local authorities would be watching to see how the scheme would work. Now, with residents settling in to their new homes, I think we can safely say that it has been a fantastic success and that Rent to Buy is definitely a model we would consider again in the future if the opportunity comes along.”
A spokesman for developer Tolent adds: “Our successful partnership with the council and wider team is delivering upwards of 450 new homes across Newcastle, and we look forward to strengthening this relationship as we move forward into 2021 and beyond.”
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It sounds like a great initiative. I'm sure that a decent chunk of Tenants will sign up for this and after 5 years they haven't saved for a deposit but enjoyed the 5 years with reduced rent.
Martin, it would be interesting to know how many have saved the deposit at the end of 5 years. At least if they are treated as a private rental the tenant cannot buy the property at a reduced rate at the end of the 5 years so the housing association housing stock is not depleted.
housing associations are a giant con--asset strippers in the main
Interested in how they decide on tenants? Are DSS given priority?
Surely those who aren't on track to saving the required deposit should be evicted early to give others the opportunity that they have failed to grasp?
Nothing new about this Rent to Buy, sub-let renters have been doing this for years making fortunes (maybe £1k pm per property) at LL's expense, while LL's are held to ransom, prosecuted and fined for the extra persons the Tenants has but dare not ask any questions or he don't get any rent, obviously he is powerless and effectively banned from the property . We are told to do inspections every 2 / 3 months not many LL's do this, it doesn't happen, too scared of upsetting the tenant and might stop paying the rent and now with Government backing, something needs to change fast.
Another bright idea that will end up as a complete failure just like help to buy and shared ownership, laughable
Shared ownership a complete disaster I know people that had those in various percentages and regretted it big time, then very difficult to re-sell and enough clauses to choke a donkey.
'Help to Buy' is help to get into trouble, to buy over priced otherwise unsaleable Flats, high rise, unsuitable Flats probably no private outside space, its to make profit for the big Developers thanks to their University friends in Government. I still contend those Flats are not required and there is no shortage its madness ? where are the people, where are they living now. I have spare capacity.
shared ownership should be the next misselling debacle--govt is pushing it hard and 10%!!!!!!
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