A rent-to-buy business has announced that it has secured £20 million in funding.
Rentplus, which was formed in 2012 and is planning to deliver 5,000 new homes by 2020, says the new investment bolsters its previous long-term funding of £70 million.
The additional cash comes courtesy of Crestline Investors, an alternative asset manager, which is providing an initial £20 million with an option for a further £20 million.
Rentplus is signed up to deliver homes in Cambridgeshire, Gloucestershire, Oxfordshire, Essex, Suffolk, Northants, Devon, Somerset, West Devon, South Hams, Sedgemoor, Plymouth and Bicester.
The rent-to-buy model provides prospective first-time buyers with privately-funded intermediate affordable housing – with a view to achieving ownership through an affordable rent and a gifted deposit from Rentplus.
Occupants have the option of fixed-term renewable tenancies for a period of five, ten, 15 or 20 years – with a rent set at 80% of the market rate.
"With deposits being the greatest barrier to home ownership, we are seeing enormous interest from local authorities, developers and housing associations in Rentplus and remain confident we will meet or exceed our goal of 5,000 new homes by 2020,” says John Gildersleeve, chairman of Rentplus.