Council backs new affordable housing scheme

A brand new innovative approach to affordable housing is to be launched in Plymouth.

In a first for the UK, the newly formed company RENTplus will offer people on the housing register new homes with affordable rent. The tenants will also be given cash towards their deposit to help them buy their RENTplus home.

Plymouth City Council has been working with Pillar Land Securities Limited and Tamar Housing Society to develop this new approach to affordable housing.

Councillor Mark Lowry, Cabinet member for Finance whose portfolio includes housing delivery said: "We are working to find ways of creating more affordable housing in the city and this innovative new model is exactly the sort of scheme we want to see. Not only does it give people access to affordable rents and support them to save, using private sector investment to help first time buyers will give people a real opportunity to get on the housing ladder."

The Council has agreed with RENTplus that at least 500 new affordable homes will be created in Plymouth over the next five years. The pilot site will be in Mannamead on former Council land where 44 per cent of the development will be affordable RENTplus homes. These homes will be designed and built with a focus on a modern and energy-efficient design. This is part of the Council's Get Plymouth Building scheme.

Richard Pillar, Chairman of Pillar Land Securities, said: "I am pleased as a Plymouth boy, born and bred, to be bringing investment into the city which will give a real opportunity to people trapped in private rented accommodation and wanting to buy their own home."

Rather than rely on government subsidy, RENTplus brings in private sector capital and M3 Capital Partners has been working with Pillar and the Council to develop the new model.

Rory Hardick of M3 Capital Partners commented: "M3 is delighted to be involved in encouraging institutional investment into affordable housing. I am impressed by the strategic vision and long-standing support that Plymouth City Council has demonstrated for this exciting new affordable housing product."

Tamar Housing Society will manage the properties in Plymouth and work with tenants to support them on their road to home ownership. Tenants buying a RENTplus home will be gifted a minimum 10 per cent deposit to help with their purchase.

Julie Barnett, Chief Executive of Tamar Housing Society said: "I am delighted to be working with RENTplus to offer affordable rented homes to local people and the opportunity to help and support those households into home ownership after a period of renting."

The scheme is designed so that as homes are purchased, new ones are being built and there is a constant supply of affordable rental properties.