Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of their rent payments towards a property deposit under a new initiative involving five flats in the town centre.
The Rent to Own scheme will allow eligible tenants to reclaim a proportion of the rent they have paid over a period of up to three years when they are ready to purchase their first home.
The properties are located in Welland House, the building society’s former head office in Market Harborough, and have been renovated as part of a wider investment in the premises.
The initiative is intended to address one of the principal obstacles facing first-time buyers — accumulating sufficient savings for a deposit while continuing to meet monthly rental costs.
Rather than requiring tenants to save independently of their housing expenditure, the scheme effectively allows part of their rental payments to contribute towards a future purchase.
Iain Kirkpatrick (pictured), chief executive of Market Harborough Building Society, said: “For many first-time buyers, saving for a deposit while paying rent can feel impossible.
“By returning a portion of the rent towards a future house deposit, this initiative gives people a real opportunity to take that next step.”
WIDER INVESTMENT IN LOCAL HOUSING
The scheme forms part of the building society’s Thrive! Agenda, which includes initiatives aimed at improving financial wellbeing and access to housing in its local communities.
It follows a £2.2 million investment by the society in seven affordable homes across South Leicestershire.
The redevelopment of Welland House also includes improvements to Market Harborough’s flagship branch, which will combine banking facilities with a community space intended for use by local organisations.
The plans build on the approach taken at Newcombe House, the society’s current head office and community hub.
The five-flat Rent to Own initiative represents a relatively small-scale intervention in the local housing market, but introduces a model under which rental expenditure can contribute directly towards a tenant’s eventual home purchase.
