In a first for Huntingdonshire, affordable rent to buy is coming to Alconbury Weald.
Huntingdonshire District Council is working with Rentplus, the leading provider of affordable rent to buy homes, to offer 22 affordable rent to buy homes to give people who are living in or working in the area the chance to get on the housing ladder without the need for an upfront deposit.
Banks and building societies are demanding ever higher deposits to secure mortgages, which remains unaffordable for many. According to Zoopla, the average price for property in Huntingdon stood at £316,552 in October 2021 and 2 bed terraced houses £218,076. First time buyers would need an income of over £50,000 to secure a standard 90% mortgage for the terraced house, and to have saved the 10% deposit most building societies demand - nearly £22,000 + fees – leaving many local residents, particularly key and essential workers on lower incomes, unable to buy their own home.
The Rentplus scheme allows for prospective buyers to move into a brand new home without the need for a deposit.
Tenants rent their home for five to 20 years at an affordable rate whilst using that time to save towards their future mortgage deposit and build a good credit rating. They pay their rent to a Housing Association and their rent includes all repairs to the property.
At the end of the agreed term, they have the opportunity to purchase 100% of their home, at which point, Rentplus gifts them 10% of the purchase price towards their savings.
The 22 attractive new build apartments are part of the new Urban&Civic development and comprise 8 x 1 bed flats, 11 x 2 bed flats and 3 coach houses and are available now. Aspiring homeowners looking for rent-to-buy must be either be living or working in the area or in education/training with local links to Alconbury and the surrounding area.
Executive Leader of Huntingdonshire District Council, Cllr Ryan Fuller, said: “We are very pleased that this development has come to fruition through careful planning and policymaking. We are consistently looking to develop more affordable homes for existing and future residents of Huntingdonshire to meet the requirements of our residents.
“We are continuing the momentum of two successful years in terms of delivering affordable homes across Huntingdonshire, and an initiative like this is another example of what we are trying to achieve to meet the housing needs of our residents.
Steven Collins, CEO at Rentplus, said: “Affordability is an issue across the country, and we are pleased to be able to offer this affordable rent to buy option and remove the deposit barrier to make dreams become a reality for people in Huntingdonshire.
“These much needed new homes will make a vital contribution to helping the area’s working families onto an affordable pathway to homeownership without the need for the upfront deposit.”
The new affordable rent to buy homes are all completed and Rentplus is working with the council to allocate them.