Local MP, Kevin Hollinrake, paid a visit to meet aspiring homeowners have who have just moved in to the first ever Rentplus affordable rent to buy homes in North Yorkshire. He met with local councillors, officers and Rentplus team, and met one of the new tenants in the development, Jess.
Ryedale District Council worked with Rentplus-UK to offer seven 2- and 3-bedroomed houses on the Wainds Field Development in Kirkbymoorside. All have private gardens and two allocated parking spaces.
Banks and building societies are demanding ever higher deposits to secure mortgages, which remains unaffordable for many. According to Zoopla, the average price for a property in Kirkbymoorside stood at £281,029 in 2021 and terraced houses £199,100. First time buyers would need to save over £25,000 to secure a mortgage and pay the fees most building societies demand, leaving many local residents, particularly key and essential workers on lower incomes, unable to buy their own home.
The award-winning Rentplus scheme allows prospective buyers to move into a brand new home without the need for a deposit. They pay affordable rent, set by the local authority, for their home for five to 20 years. For these properties, the rents are between £520 and £600 a month and tenants use the rental period to save towards a future mortgage deposit and build a good credit rating.
Rentplus buys the homes from developers and let them on long leases usually to local housing associations. The rent includes all repairs to the property.
At the end of the agreed term, the tenants have the opportunity to purchase 100% of their home, at which point, Rentplus gifts them 10% of the purchase price towards their deposit.
Steve Collins, Rentplus CEO, said: “Rentplus turns renters into homeowners. Affordability is a growing issue across the country and Rentplus is really making a difference. This is our first scheme in the North East and we’re excited to be working with Ryedale District Council and Cicero to help the area’s working families onto an affordable pathway to homeownership without the need for any upfront deposit.”
Cllr Mike Potter, Chair of Planning for Ryedale District Council added: “Last year we opened two housing developments to provide more affordable homes. I’m delighted that Wainds Field is the first of 2023 which we are delighted to officially open today. It provides affordable homes for our local community – the new tenants have local connections to the area, all working locally, most are in key or essential worker roles. It’s a lovely and welcoming site which is testament to the partnership working Ryedale District Council has undertaken with local developer, Cicero and with Rentplus for the benefit of our citizens.
“Our Council Plan sets out clear targets to provide affordable housing as we recognise that house prices and rents are high in Ryedale and that this is an issue we need to tackle. Ryedale is leading the way in delivering affordable homes for local people and Ryedale staff and Rentplus UK should be proud of delivering this.”
Mr Hollinrake talked about the importance of helping people to have opportunities to own their own home. ““Owning your first home is a dream for every family. I was delighted to join Rentplus at their site in Ryedale to see what they are doing to make that dream a reality for local people and to meet some of the families living there. It was good to hear about how Rentplus offer not just affordable rent but the chance to buy so that people can benefit from being homeowners.
“I would also like to wish Jess and her family good luck and congratulate them on moving into their new home through Rentplus.”
You can find out more by watching the Rentplus film Turning Renters into Homeowners.
