1. Explaining Rentplus: A Housing Solution
2018

2. Affordable rent to buy and national context
Nationally and locally the demand for homes far exceeds supply
Inability to save a deposit is one of the biggest obstacles to home ownership
Soaring prices and rising rents, not enough of the right homes in the right places creates exclusion and insecurity of tenancy
Recognition that we need a flexible approach to tenure and ownership: creative solutions and a different mind-set are key to avoid doing what we’ve always done
Rentplus’ affordable rent to buy model offers an accessible route to home ownership for those who are currently excluded, with the opportunity to rent, save and own
Facilitates best use of existing social/affordable housing and houses people from the waiting list
Fully-funded solution requiring no government funding

3. Fair rents “Fair Rent” homes outlined as: Rentplus response:
Genuinely affordable rents linked to local lower incomes
80% affordable rent or LHA whichever is the lesser
Increased saving potential achieved through lower housing costs
Reduced rents enabling people to save more, can also use the lifetime ISA to achieve further government incentives making deposits more achievable
Path to ownership over the long term
Only product addressing debt history, rent levels and deposit challenges
Stable tenancies offering 10 years’ security of tenure
Security of tenure and support for up to 20 years
Allocated to households unable to afford local market options
Tenants come from waiting lists, 70% of whom will never be offered a home in the current system. Meeting the needs of ordinary working families
Supported by government grant
No government grant required, freeing up investment for other government priorities or more housing
A vehicle for pioneering a new generation of land value capture
Our model reinvests land value capture in places making them more economically sustainable

4. NO cost to the public purse
FULLY-FUNDED by institutional investors
£200m
£120m
£80m
£40m
Initial Crestline funding to build properties
BAE Systems pension fund Term funding
Rentplus fund
Goldman Sachs bond issues
(first programme, uncapped potential)
BBB rating (DBRS)
Circa £40bn
Potential of significant inward investment in affordable housing

5. Built, contracted or under offer
homes
£1.8bn
£1.2bn
Growing at pace from inception to 2020
£637m
3,440
6,131
9,100
Built, contracted or under offer
Future pipeline
TOTAL

6. About
Rentplus is an innovative housing solution which delivers the government’s White Paper key objectives:
Affordability
Security of tenure
Institutional investors
Additionality
A broader range of developers and tenures
Rentplus is the leading provider of affordable rent to buy housing, established to help working households unable to access other affordable home ownership options and who are low priority for social housing
Many have little hope of getting an affordable rented home and are paying high private sector rents, with no prospect of saving for a deposit; some will have poor credit history, which prevents them getting a mortgage
Rentplus model means ordinary working people can rent, save and then own their own home, an aspiration to which 86% of the population still aspire - despite the lack of a deposit
Rentplus tenants pay an affordable rent (the lower of 80% market rent or LHA cap including service charges), with no repair and maintenance costs, and low running costs, meaning they are able to save towards their deposit

7. About The Rentplus model overcomes these barriers
Housing became less affordable for first-time buyers in 78% of local authorities in 2017
The Rentplus model overcomes these barriers
We are the leading national provider of affordable rent to buy housing, giving aspirant home owners a real opportunity to get on the housing ladder, and off councils’ waiting lists:
Rentplus tenants coming from council waiting lists
Tenants have the opportunity to buy their home in 5, 10, 15, or 20 years (depending on their circumstances), with security of tenure until then
When they come to buy their home, Rentplus provides them with a 10% gifted cash deposit
Fully funded by institutional investors with no public subsidy or grant, we work in partnership with local authorities, housing associations and developers to accelerate delivery and provide genuinely additional affordable homes
78%
MHCLG house building statistics June 2018
Tenants moved out of existing social housing, freeing properties for families in greater need
60%
35%
Quarterly new build starts 5%
less than previous 3 months 8%
lower than 2017
Quarterly completions 9%
less than previous 3 months* 4%
lower than 2017
* estimated

8. across the country Locations
July 2018 changes to National Planning Policy Framework definitions of affordable housing confirmed that Rentplus is an NPPF-compliant affordable housing tenure
This has given more local authorities the confidence to include our model within their housing policies
With a pipeline of 10,000, our ambition is to secure 5,000 homes for families by 2020 and we’re working creatively with local authorities to make this possible
Northamptonshire
Cambridgeshire
Gloucestershire
Milton Keynes
Essex
Oxfordshire
Somerset
Devon
Dorset
Established homes and planned new housing
2018/19 funded new homes
Plymouth

9. : working in partnership
Local Authorities
Registered Providers
Rentplus
Funders
Housebuilders and Land Promoters
Partnership to identify suitable sites for Rentplus homes
Rentplus homes included in new developments to improve the mix of tenures – currently through s106
Rentplus homes can increase the % and range of affordable tenures on new developments
A hybrid affordable housing solution – both affordable rent and LCHO

10. : how does it work? Fund Build Lease Let Buy Replace
Homes funded by institutional investors
Homes built to building regulations and Rentplus standards
Rentplus homes leased to local partner Registered Providers (RP) for up to 20 years
Homes initially let at 80% market rent or LHA (incl. service charges) to meet both LA affordable housing and market demand
25% of Rentplus homes are sold to tenants if they choose to buy at years 5, 10, 15 and 20 with a 10% gifted cash deposit
As homes are sold, Rentplus intends to replace them to maintain numbers of affordable homes

11. : managing the tenancies
Support
Manage
Grow
Target
Gift
Option
Tenants supported and enabled to move into home ownership by RP
RP partner manages Rentplus homes including repairs, service and collects rent
Rents increased by CPI +1% annually; rebased every 5 years
Tenant agrees at sign-up when their home is available to purchase (5, 10, 15 or 20 years); 5-year renewable tenancies until then
10% OMV gifted cash deposit provided by Rentplus for tenants at purchase
S106 cascade allows for substitute tenant, RP discounted purchase or sale on open market

12. : working + LAs to deliver affordable housing
If the home is sold on the open market, 7.5% of sale proceeds are given to the local authority to re-invest in future affordable housing
MOU to maintain pipeline of properties to replace sold homes on a one-to- one basis
Increase in the number of affordable homes available and New Homes Bonus payments – additionality to HA/LA affordable housing provision
Opportunities to unlock stalled developments and accelerate delivery: viability challenges or bringing forward stalled sites by forward funding the affordable housing element
Local lettings plan agreed with LA; applications made through local CBL scheme or alternatives to ensure local people housed, for example:
35%+ Rentplus tenants have moved from existing social housing, freeing up homes to house those in need from the housing register
60% housed from housing waiting lists
Opportunities for bespoke strategic partnership to support accelerated delivery and strategic growth, garden towns/villages and urban extension sites, supporting SMEs on stalled sites and new construction methods

13. : for tenants
Offers a route to home ownership for working/in training lower income households who can’t get on the housing ladder/have lower priority for social housing
Opportunity to build credit history to help mortgage application and to save with Help to Buy or Lifetime ISA
Provides real opportunity for local people in housing need who aspire to home ownership and are currently unable to save a sufficient deposit
New home at an Affordable Intermediate Rent with low running costs and support to achieve home ownership
No repairs and maintenance obligations during the rental period
Gifted deposit of 10% of the open market value of the property at the time of 100% purchase

14. : Registered Providers (RPs)
Working in partnership with local RP partners to deliver great customer and landlord services for Rentplus tenants
Partnership based on framework agreement and site specific 20-year operating leases
No requirement for additional borrowing or using financial capacity to grow/consolidate portfolio; in addition to planned development programme
Bringing sites forward, with joint appraisals and bids, to create a pipeline of future homes
Control over allocations, in accordance with LA requirements
Additional income stream from retained rent income, project management and introduction fees, estate management service delivery
VfM and efficiencies through consolidation of stock portfolio and reduction in overheads
Opportunities to purchase properties with 10% gifted deposit if tenant unable to proceed with their purchase

15. : delivery
For institutional investors: a sustainable, ethical, socially responsible and robust financial model with a blended rental yield and capital return
For government: supports momentum in delivering sustainable homes at scale and at pace; the model is robust against market correction; protects against risk of reduced appetite for home ownership
For local authorities: certainty of delivery of s106 Affordable housing obligations by developers and housebuilders. Bespoke strategic partnerships with emerging LA Local Housing Companies, council housebuilding programmes and garden towns/villages
For registered providers: complementary to existing development programme, growth and income generation without additional borrowing or sales risks, or impact of a reduced appetite for shared ownership and open market sales
For housebuilders: competitive prices, improved viability to unlock stalled sites, certainty of purchase for Affordable housing; upfront financing, doesn’t compete with open market sales
For UK economy: supporting inward investment, growth, funding and delivery of affordable housing, creating jobs and providing short, medium and longer-term investment in home ownership

16. Getting in touch:
For further information or questions please get in touch:
Office
Online
@RentplusUK
@Rentplus_UK
Our locations
Milton Keynes
II Exchange Square
21 North Fourth Street
Bucks MK9 1HL
Plymouth
Floor 2
Studio 5-11
5 Millbay Road
Plymouth PL1 3LF
London
25 Bedford Square
WC1B 3HH