Rental options in the CPCA
What are my options for renting a home in the CPCA region?
If you’re not quite ready to take that first step onto the property ladder but would like to rent a home within the Cambridgeshire and Peterborough Combined Authority, there are affordable rental options aimed at those who intend to buy a home in the next few years.
Intermediate Rent offers the opportunity to rent a new or refurbished home, or a property that is being re-let to tenants at a price that’s below the market rate. The payable rent is subsidised – usually at around 20% lower than what you’d be paying on the private market for a similar home in the same area.
Helping aspiring buyers, Intermediate Rent gives people the chance to use the savings made on the below-market-value rent to save for a deposit with the aim of purchasing a home within the next five years.
Not only are these homes more affordable, but the resident would have the assurance that their home is built, managed and let by a Registered Housing Provider.
These homes are usually let on an Assured Shorthold Tenancy with a six month contract. You would often have the opportunity to rent the home for a longer period than stated in the initial period, however this would depend on the landlord’s plans for the property.
Rent to Save
Rent to Save gives people the opportunity to rent a newly built home on an Intermediate Rent basis. The payable rent is subsidised at approximately 20% lower than what you’d pay for a similar home on the private market. You can do this for up to five years with the option of buying the home through Shared Ownership when you’re ready.
If you’re renting a home through the Rent to Save scheme, you can make an offer to buy the property at anytime during the tenancy period. If you decide to buy, your housing provider will need to assess what share of the home can be bought based on an independent financial assessment. Please note that terms and incentives may vary from home to home.
Some key features of Rent to Save are as follows:
- These homes are let at up to 80% of the equivalent market rent for that particular property, with a fixed rate of inflation.
- The property would be let to you on an Assured Shorthold Tenancy basis for a fix term of up to five years. This will be linked to – but not necessarily the same as – the required savings period.
- The length of your tenancy can be extended if you still want to buy the home but need a bit more time to save.
- Subject to the terms of your tenancy agreements and initial fixed terms, your tenancy can be ended at any time.
- In order to help you raise a sufficient deposit to buy the home on either Shared Ownership or equity loan terms within five years, a tailored savings plan will be put in place.
- Your housing provider will check in for regular reviews to discuss your progress in saving for a deposit.
- You can purchase the home on a Shared Ownership or equity loan basis at any point during the tenancy, subject to you still being eligible.
Eligibility Criteria for Intermediate Rent and Rent to Save
The key eligibility criteria for becoming an Intermediate Rent or Rent to Save tenant are as follows:
- You must be at least 18 years old.
- Your household income must be less than £80,000. However, it’s worth noting that if you ever decide to move to London, the upper limit in the capital is £90,000.
- Generally speaking, you should be a first time buyer. However, if you do already own another property, you will need to be in the process of selling it.
- You shouldn’t be able to afford to purchase a home suitable for your housing needs on the open market.
- You will need to show that you are not in mortgage or rent arrears.
- You will need to be able to show that you have a good credit history and can afford the costs associated with the home.
Please note that you should always check the eligibility criteria with the relevant housing association as they may have additional requirements that you need to meet.
If you’re looking to find out more about the different home-buying schemes available to first time buyers in the CPCA, you can visit our pages about Shared Ownership and Help to Buy. You can also start your search for a home on our property portal today!