North Swindon MP Justin Tomlinson has met with the Chief Executive of Rentplus, Richard Connolly, to discuss innovative new offering for Swindon's housing mix.
Rentplus is a major new affordable housing option, providing real opportunities for people aspiring to move from renting to owning their home. Its developments will all comprise of new build properties with strong energy efficiency performance, meaning occupiers can achieve savings on household bills.
Tenants have five-year renewable tenancy agreements, at an affordable rent set at 80 per cent of market rent, including any service charge, with no maintenance responsibilities, giving them time to save for a deposit and build creditworthiness records that will support mortgage applications.
After a tenancy period of five, ten, 15 or 20 years, the occupier will be invited to purchase their property. While there is no obligation to purchase, those who do choose to buy receive a gifted deposit of ten per cent of the property’s market value. As there is no chain and they are already in situ, there are none of the delays, uncertainties or moving expenses of most house purchases.
All Rentplus homes are sold after 20 years. If they are not purchased by the occupier or the housing association, houses will be sold on the open market, with a percentage of net proceeds paid to the local authority for future affordable housing.
During the meeting, Justin & Richard discussed how Rentplus's model would be beneficial to resident in Swindon who are looking to move from renting to owning in a sensible way.
Justin has encouraged Rentplus and Swindon Borough Council to work together on plans to bring the scheme to the town.
Justin Tomlinson MP said: "It was fantastic to meet Richard & discuss Rentplus's innovative plans on home ownership. Rentplus's model allows people to enjoy a stable, 5 year, tenancy at an affordable rent level, before they are given the option to purchase their home or continue renting. As more people look to become homeowners in Swindon, this model could provide a huge opportunity and I know Swindon Borough Council is looking to discuss the idea in detail with Rentplus."
