Building Society opens applications for unique rental scheme

The Cambridge Building Society has opened applications for its unique Rent to Home scheme.

Last month it announced that it had invested in a further two properties - in addition to an existing three - which it would be letting out through its rent-return housing scheme.

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 conventional renting might otherwise prevent them saving for. 

The Cambridge’s 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. Now two family houses have been added to the portfolio.

The recently constructed modern end of terrace homes have open-plan interiors and low maintenance gardens, aimed at benefitting families who might otherwise struggle to rent and save for a deposit at the same time.

Applications are now open and close on May 31. A ballot will be drawn on June 16 to select the winners.

Society spokeswoman Carole Charter says: “I’m delighted that we’ve been able to grow our portfolio of rental properties by investing in these two family-sized homes to expand our unique scheme. Saving for a deposit of thousands of pounds is a challenge and it’s our commitment as an independent mutual to make it easier for people to take that first step on the property ladder.

“It’s been fantastic to watch our previous renters get the keys to their own homes because of their ‘Rent to Home’ success and now that exciting prospect is waiting to happen for our next lucky applicants.”

The winners will be able to live in the houses for up to three years after which - and contingent upon them securing a Cambridge mortgage on their first property - The Cambridge will return up to 70 per cent of the rent to use as a deposit. 

The 70 per cent is estimated to be £32,000 to £36,000 based on the market rents of £1,300 and £1,450 for the two properties.