L&Q launches rent to buy product
London and Quadrant housing association is to launch a rent-to-buy product which it says will help low-paid workers save for a deposit.
The association, which owns and manages 60,000 homes in London and the south east, will launch a product which offers homes at 65 per cent of market rent.
To be eligible, tenants have to be on the social housing waiting list and be employed in low paid work. They will be incentivised to pay their rent on time and maintain their home, and after five years they will be able to buy a stake in the property.
David Montague, chief executive of L&Q, speaking about the product at a debate at the British Academy in London, said: ‘We know mortgage availability is tough but for that reason we can use corporate finance to create rent to buy products to enable people to move into a home they love, to pay a discounted rent and to save for a deposit - all done off the back of a housing association’s balance sheet.’
The latest product is an adaptation of Up to You, a scheme piloted last year aimed at those who cannot get access to shared ownership schemes due to mortgage unavailability, offering homes at 80 per cent of market rent.