Investment firm Kettle Homes has launched a £150m single family Rent to Own strategy.
It will buytwo, three and four bed single family rental homes in the Midlands, Yorkshire and the North West over the next 18 months.
In contrast to shared ownership strategies, the firm’s rent to own option requires that all homes either be sold to first time buyers or be moved unencumbered into a clear open market single family rental portfolio within five years of purchase.
Tenants can stay beyond the initial rent to own period if they wish to remain as a renter long-term.
The homes to be purchased are all new build and sourced through established partnerships with housebuilders.
Only those with a minimum EPC rating of B or better will be offered, as part of a commitment to provide homes with good sustainability credentials and lower energy bills (up to £3,100 annual savings for tenants).
Chief executive officer Trevor Stunden says: “We set up Kettel Homes as an alternative way to buy a new, energy-efficient home without the initial need for a large deposit. Currently, we estimate a staggering 2.8m households in private rental accommodation want to purchase a home but are unable to do so.
“51% of first-time buyers cite deposits as the main barrier. At the same time, most rental properties are EPC D adding to cost pressures and carbon emissions.
“Kettel Homes exists to help solve the homeownership crisis, level the playing field and help the ‘squeezed middle’ and key workers.”