Richard Connolly, CEO of Rentplus, comments on the ONS Output of the Construction Industry Statistics:
“While the construction industry as a whole appears to have flatlined post Brexit vote, the jump in the construction of new homes year-on-year will be warmly welcomed. The increase of 28.2% in the number new housing starts seen in quarter two of this year versus quarter one is the highest level seen since 2007, and it supports recent reports across the sector which show that the gloomy Brexit predictions are yet to be realised.
“Despite this however, the figures do reveal the startling disparity between the private and public sector housing markets. The 8.3% increase in new private housing between July 2015 and 2016 is strikingly offset by an 8.6% decrease in the number of public homes being built.
“This trend is reflected in the new start figures, with public housing accounting for just 11% of all new housing orders – well below Government targets. More urgently needs to be done to increase the number of affordable homes available and the delivery of these must become a priority – innovative solutions must be embraced to support a mix of housing options to best suit the range of needs of local communities.
“We hope that November’s Autumn Statement will be a pivotal turning point in addressing the housing shortage.”
Rentplus was established in 2013. The company is funded by institutional investors, and is the leading provider of affordable rent to buy homes nationally. The Rentplus model offers aspirant home owners the opportunity to purchase their own home through a combination of affordable intermediate rents and a 10% gifted deposit.
Working with Registered Providers (Housing Associations), the Rentplus rent-to-buy model offers five year renewable tenancies at an affordable intermediate rent, set at 80% of market rent. Tenants are given the opportunity to purchase their property at year 5, 10, 15 or 20 and are eligible for a 10% gifted deposit from Rentplus to aid their mortgage application.
With offices in Plymouth and London, Rentplus aims to build a minimum of 5,000 affordable homes across England by 2020 and currently has a pipeline of 9,000 homes across the country. The company currently has 58 houses in Palmerston Heights in Plymouth (part of the new Seaton Neighbourhood), Sherborne in West Dorset and Lechlade in the Cotswolds, with plans to develop more during the year.