Dandara and Hartford Homes back new rent-to-buy route onto property ladder

A rent-to-buy scheme aimed at islanders who can afford a mortgage but struggle to save a deposit has opened for pre-registration, with housebuilders Dandara and Hartford Homes signed up as partners.

The initiative is run by island-based company Own Homes, according to Energy FM. Full applications are due to open in November, with 3FM reporting the launch is expected in early November.

Under the scheme, eligible buyers can move into a new-build home without first having saved a conventional mortgage deposit, Energy FM reported.

The main points reported so far:

• Buyers make an initial payment when they move in.
• They then build up their deposit through monthly payments while living in the property.
• The aim is for them to buy the home with a conventional mortgage within five years.
• Before joining, applicants have to show a lender would offer them a mortgage on the home they want, once the deposit is in place.
• The scheme covers new-build homes worth up to £600,000 built by Own Homes’ partner housebuilders.

According to 3FM, it will be offered on selected properties across the two developers’ major developments on the island. Neither outlet listed which sites are included.

Own Homes founder Chris Lee said the scheme is intended for people who can manage mortgage repayments but find it hard to put together the large deposits needed to get onto the housing ladder, Energy FM reported.

People need a realistic route to owning a home if they are to build careers and raise families on the island, he said, according to 3FM.

The launch comes amid continuing concern over housing affordability. 3FM put the island’s average house price at £393,735 and said many people on good incomes are struggling to save for a deposit. Energy FM said recent government figures show average prices approaching £394,000.

Neither report set out the size of the initial payment, the level of monthly payments, or how those payments would be split between rent and deposit savings.

Pre-registration is open now through Own Homes.