Fund managers invest £2m in first-time buyers scheme

A UK fund management company has partnered with local authorities to deliver a £2m scheme for first-time buyers.

QSH along with Kirklees Council and Kirklees Neighbourhood Housing will be delivering a collection of homes in Upperthong.

Construction partner, Conroy Brook will begin on site immediately and when complete, deliver 27 new homes.

Tenants will have the ability to purchase the property between the first and fifth year of living in their new property with half of the tenant’s rental payments put towards the deposit they need to secure a mortgage to buy their home (up to a maximum of 10%).

Those who choose not to purchase during this time can continue renting their homes for a further 15 years.

Steve Partridge, finance and investment director at QSH, said: “This innovative funding model will bring new sources of equity investment into the affordable housing sector at a time when the need has never been greater. Our rent-to-buy model complements the government’s Starter Homes initiative, helping people to save for their home whilst living in it, but also provides viable, sustainable options for people who will still require homes for long-term rent.

“We hope that this new practice of bringing affordable housing developments forward will be carried across many more similar projects and help address the chronic shortage of affordable housing.”

Richard Conroy, CEO at Conroy Brook, said: “This deal involves multiple parties, all of whom are working together to bring more affordable housing to our local communities and help more buyers onto the property ladder.

“The site is significant in that it shows our ongoing commitment to delivering developments that have a higher volume of affordable housing to benefit local buyers.”