HomeNow has secured £65 million in new funding as it prepares to expand its rent-to-own model to hundreds more households across the UK.
The FCA-authorised provider, which offers a two-year home purchase plan, aims to invest in more than 800 affordable rent-to-own homes over the next two years.
The scheme is designed for households in the so-called squeezed middle who struggle to save for a deposit despite earning well above average incomes.
The business positions itself as an alternative route into homeownership at a time when mainstream mortgage affordability remains tight. It says its model can help families and young professionals who earn too much to qualify for government support but not enough to build a deposit while meeting rising rental costs.
“880,000 renters earn over £40,000”
Jonathan Potter (pictured), chief executive of HomeNow, said: “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”.
RENT REFUNDS FORM A DEPOSIT
Unlike conventional renting, HomeNow’s structure gives customers a rental refund at the end of the two-year plan worth 5% of the value of their chosen home. This sum can then be used as a deposit for a mainstream mortgage.
The company argues that this mechanism gives households a clearer path to ownership without requiring upfront savings. Fair rents are fixed throughout the two-year period, and customers have no additional fees to pay.
Potter said: “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.”
He added: “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.”
NATIONWIDE EXPANSION PLANNED
HomeNow currently has more than eleven thousand qualified families on its waiting list. The new investment will be used to acquire and deliver homes across the country in partnership with major UK housebuilders, with a particular focus on new energy-efficient properties.
Under the model, all homes offered through the scheme are newly built and expected to have lower running costs, supporting households facing rising living expenses.
Potter said: “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”.
With demand for alternative routes to homeownership growing, the expansion of the scheme will be closely watched by brokers and housebuilders alike, particularly as affordability challenges show little sign of easing.
