HomeNow, the UK’s only FCA-authorised provider of a two-year Home Purchase Plan, has secured £65m in new funding to accelerate the rollout of its rent-to-own model across the country.
The investment will support the delivery of more than 800 affordable homes over the next two years, aimed squarely at households shut out of traditional mortgage routes.
The company’s model is designed for the UK’s “squeezed middle” – families and young professionals earning solid incomes but unable to save a deposit fast enough to keep pace with rising house prices.
Instead of paying rent with no return, customers receive a refund worth 5% of the property value at the end of their two-year plan, which can then be used as a mortgage deposit.
GROWING DEMAND
Demand for the scheme continues to grow, with 11,000 qualified families already on the waiting list. HomeNow is now working with major housebuilders to expand its pipeline of new, energy-efficient homes nationwide.
Jonathan Potter (main picture), Chief Executive of HomeNow, says: “This funding represents a watershed moment for UK homeownership.
“We’re helping solve a £200 billion market problem: 880,000 renters earn over £40,000, we can help them escape the rental trap and achieve their homeownership dreams through a regulated, innovative approach.
A NEW HOPE
“For the thousands of hardworking families stuck renting and unable to save for a deposit, there’s new hope.”
“We know how frustrating it is for families who do everything right but still can’t get on the property ladder. For parents, this is also a practical way to help grown-up children take their first step towards homeownership, without needing to gift a deposit.”
RENTAL FLIP
And he adds: “Our clear two-year model flips renting on its head with fair rents fixed for the whole period and a portion refunded toward a deposit; no hidden fees and brand new, energy-efficient homes that reduce monthly outgoings.
“Every monthly payment moves you closer to owning your own home.”
