Housing Minister Brandon Lewis visited County Durham to officially open a brand new housing development which provides first time buyers with the opportunity to ultimately purchase their home through an innovative rent then buy option.
The £1.3 million scheme in Low Willington, near Crook is the first market rent scheme in the North of England to be completed under the Government’s Build to Rent Fund which is managed by the Home and Communities Agency .
The homes, which have been developed by Prince Bishops Homes (PBH) – a subsidiary of North Durham housing provider Derwentside Homes, consist of 14 three and four bedroom homes and have already been praised by local families who have been given the opportunity to rent a brand new home and potentially get that all important first step onto the property ladder through PBH’s ‘Rent then Buy’ scheme.
Tenants rent the properties at market rent levels until March 2020 and are then given the chance to purchase their home sharing in any increase in equity which has occurred in that period, using this money as a deposit for a mortgage. The tenant does not have to purchase, they can continue to rent if they so wish and there are no up front commitment fees.
Derwentside Homes was the only housing provider in the North East to receive funding from the Homes and Communities Agency (HCA) one billion pound Build to Rent Fund in their announcement in April this year. The association received 50 per cent funding totalling £4.8 million to build 114 homes for market rent under the initiative, which aims to increase the number of homes built for market rent.
Since the company was launched in 2008, PBH boasts an impressive property portfolio of over 250 homes and expects to unveil its 300thhome in the New Year. PBH is currently developing a further 300 homes across the North East and will have a portfolio of 600 properties by 2016.
The scheme in Low Willington, which is called Dellside and was constructed by Swale Valley Construction, is the first to be unveiled as part of the Government’s Build to Rent Fund and is helping first time buyers such as Stephanie Mavin and her partner, Gavin Sherwood to live in their dream home.
Housing Minister Brandon Lewis said: “The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country. It’s wonderful to visit this development in County Durham which is helping boost local housing supply and local economic growth.”
Naz Parkar, Executive Director at the Homes and Communities Agency, said: “These 14 new family homes will make a huge difference to local families in Willington by providing a choice of 3 and 4 bedroom houses. The Build to Rent programme makes a significant contribution to supporting a diversity of choice and provision to help meet local needs and priorities.”
Chief Executive of PBH Keith Tallintire, said: “I am pleased to welcome the Housing Minister to officially unveil this new development – the first in the North to be completed under the Government’s new initiative. The scheme not only helps companies such as Prince Bishops Homes to increase the number of properties built for market rent but also help local families such as Stephanie and Gavin onto the housing ladder. The private rental sector is an alternative option for people looking to own their own home but can’t afford initially to make that commitment of buying their property outright. Under this scheme, tenants have the option to buy their property after four years, and provides assistance in getting that all important mortgage deposit at no extra cost through a share in any increase in equity.”
Nationally, Derwentside Homes was one of the first 11 developers to secure a Build to Rent Fund contract. Together these projects are worth £150m and are delivering over 2,000 new homes for private rent.
Their bid was for the developmentof 114 market rent units at an approximate cost of £9.6 million.
