Affordable rent scheme helps Northampton first-time buyers

An innovative scheme to help first-time buyers struggling to buy a home or secure a mortgage is now available in Northampton.

Housing and regeneration group LHA-ASRA is making 20 apartments at its Broad Street development available through a scheme called ‘intermediate rent’.

It allows people to rent a home at below market prices with the option to save money each month towards a deposit, which LHA-ASRA will match fund, for up to three years.

This means the tenant then has a lump sum which can be used as a deposit to buy their home, or can choose to transfer the value to buy an LHA-ASRA home in another area.

The Broad Street scheme is the first in the area to be approved by Northampton Borough Council to offer intermediate rent.

Amy Mackay, LHA-ASRA Sales and Marketing Manager, said: “Intermediate rent is designed as a stepping stone to help those who want to get on the property ladder but are struggling to secure a mortgage or build up a deposit while renting on the private market.

“Because the rent is lower than the market value, tenants can afford to put aside money each month to build up a deposit, and we will also match the contribution. So, for example, if you rented the home for 12 months, saving £100 each month, you would have a £2,400 deposit.”

There is no obligation to buy at the end of the tenancy and the tenant can continue to rent and save with LHA-ASRA.

The development, which is walking distance from the town centre, comprises 33 one and two bedroom apartments with a modern fitted kitchen and bathroom, open plan living and dining areas, extensive storage space and a choice of apartment size and layout. The fitted kitchens all have an integral oven with hob and extractor.

The apartments also have secure allocated basement parking at no extra cost, and are located near the town’s Castle railway station.

The remainder of the homes are available through the Housing Corporation’s New Build HomeBuy shared ownership scheme, where people buy part of the home with a mortgage and then pay less than market rent on the remainder. Prices start from £57,000 for 50% share with weekly rent of £32.90.

The homes are part of the new 255-property development built by Kings Oak Homes.

LHA-ASRA also developed the Newlife Apartments at Spring Boroughs in Northampton. The majority of the 48 apartments for shared ownership sold in less than three months, with some sold in just one month.

LHA, a housing association which is part of the LHA-ASRA Group, manages 300 homes in Northamptonshire.