Building Society buys houses to let out in rental scheme

The Cambridge Building Society has invested in two family-sized houses to expand its unique ‘Rent to Home’ rent-return housing scheme.

The two modern family homes in Northstowe and Longstanton bring its portfolio to five, with a pledge for more properties to come on board in the future.

The Rent to Home scheme was initially launched in 2019 and remains a one-of-a-kind initiative that gives local first-time buyers 70 per cent of their rent back after three years to use as a deposit to buy a property, which renting might otherwise prevent them saving for. 

The first properties were flats it already owned – two above its Great Shelford branch, and a third flat above the Cottenham branch - which were let out in 2019 and 2020. 

The two newest properties are recently constructed modern end of terrace homes with plenty of space, open-plan living and low maintenance gardens, aimed at benefitting families who might otherwise struggle to rent and save for a deposit at the same time.

Chief commercial officer, Carole Charter says: “Our Rent to Home scheme has been a phenomenal success and delivered exactly what we intended, which was to help a first-time buyer get a foot on the housing ladder, so it made sense to expand it further to help even more people have a home.

“These two new properties are larger and aimed at families, who can afford to pay rent or a mortgage, but wouldn’t be able to save at the same time for a deposit for their own home.

“We have already had tremendous interest in these properties and we look forward to the ballot in the next few weeks to welcome two new sets of tenants.”

Each property is rented out at market rates of £1,300 and £1,450 respectively for a maximum period of three years, after which the tenants will receive 70 per cent of the rent back as a home-buying deposit when they take a mortgage through The Cambridge. Terms and conditions apply.