Leeds backs call to help get key workers on housing ladder

Seven out of ten people living in Leeds want to see more support to help key workers onto the housing ladder, according to a new study.
A majority of Leeds residents would support help for key workers to get on the housing ladder.A majority of Leeds residents would support help for key workers to get on the housing ladder.
A majority of Leeds residents would support help for key workers to get on the housing ladder.

Last month, Rentplus, the UK's leading provider of affordable rent to buy homes, published research which revealed the full impact of COVID-19 on aspiring homeowners - and on key workers in particular.

It showed three in ten key workers say the coronavirus crisis has made home ownership less achievable.

But nearly 70 per cent of Leeds residents would support initiatives which would provide extra support to help the nation’s key workers onto the housing ladder.

Alasdair Manson, Yorkshire and the North East area manager for Rentplus.Alasdair Manson, Yorkshire and the North East area manager for Rentplus.
Alasdair Manson, Yorkshire and the North East area manager for Rentplus.

Alasdair Manson, Yorkshire and the North East area manager for Rentplus, explains why Yorkshire is ripe for a housing revolution for lower-paid workers.

“Our research found that over a third (38 per cent) of all NHS and key workers say they have less money as a result of the pandemic, putting home ownership that bit further out of reach, especially when you consider that saving for a deposit tops the challenges for key workers when thinking about buying a home.

“The problem has been made worse with the pandemic pushing building societies to ask for bigger deposits – 15 per cent or 20 per cent and some even 40 per cent.

“This is making it impossible for those on low incomes to raise a deposit, and government schemes to help first-time buyers, such as shared ownership and Help to Buy, have fallen short of helping those it sought to support.”

He continues: “It comes as no surprise to me that the people of Leeds would support initiatives which provide extra support to help people onto the housing ladder, given the pure hard work and commitment that key workers have shown over this difficult year.”

Of those surveyed, nearly one in four said the public sector should pay, seven per cent nominated the private sector, and 51 per cent said it should be a mix of private and public.

“I believe everyone deserves the right to their own home. Home really is where the heart is. There’s a real need to increase the use of creative approaches if we are to make any progress at real scale to give our valued key workers the opportunity to own their own home, and this is something the people of Leeds support.”

And that is where Rentplus can help.

Rentplus is a route to home ownership that requires no upfront deposit. Residents move into a brand new home without having to pay a penny in deposit – thus removing the biggest barrier to homeownership.

“Over 50 per cent of our residents are key or essential workers. They’ve told us that they were not in a position to save even £10 a month, so raising a £30,000 deposit would be impossible,” adds Alasdair.

Rentplus homes are managed by regulated housing association partners. Residents pay an affordable rent set by the council (usually 80 per cent of the private rental market costs). They pay no repairs or maintenance for the period they rent. They can choose to rent for five to 20 years.

The initial five years gives them a chance to repair their credit history and to start to save. Where Rentplus have had tenants in homes for nearly five years, over 90 per cent are on target to transfer from being a renter to being a homeowner.

When they are ready to buy, Rentplus will gift them a further ten per cent of the sale price towards their deposit.

“I want to see families and working people given the chance to rent a property for between five and 20 years, to start to save, repair their credit rating and most importantly, to live in a community they want to be in and want to raise their family in,” says Alasdair.

“That’s why I am working hard, talking to housing developers, to local housing associations and to councils across the region to ensure that Rentplus’ unique affordable rent-to-buy proposition is made available to those on lower or middle incomes, without savings, to give everyone a place they can call their own.”

If you are a developer, a registered provider or a local authority, you can contact Alasdair by emailing [email protected]