The Genie low cost home ownership approach pioneered by northern housing provider Gentoo Group is looking to partner with developers in the capital following the signing of a £40m deal with the Greater London Authority (GLA).
Genie’s deal with the GLA, signed this week, will see it access up to £40m of loan finance to deliver homes. The investment has come through the Mayor’s Revolving Fund, which gives recoverable loans to fund new forms of affordable housing.
The London investment follows Genie’s successful pilot in the North East of England which has seen 94 families move into their own homes. The 30 year homeownership plan does not require a mortgage or deposit and is targeted at helping first-time buyers and long-term renters into home ownership.
Genie is now looking to work with London developers to acquire new build properties, development land and joint venture opportunities.
Steve Hicks, managing director of Genie, said: “Now the deal has been signed with the GLA we are going full-steam ahead in acquiring sites for Genie customers.
“We hope to have the first properties available to customers by the end of this year.
“Genie was set up as a way to help those people who want to get onto the housing ladder but who haven’t been able to because of a number of reasons, including saving for a deposit while renting.
“This 10 year partnership with the GLA will help customers into a minimum of 2,000 new homes in the capital who otherwise would have struggled to own their own homes, because of the difficult market conditions in London.”
London deputy mayor of housing, land and property, Richard Blakeway, said: “The idea that Gentoo have come up with through the Genie product, of allowing people to effectively purchase their home through their monthly payment, is offering something new and exciting for the housing market.
“Genie is very suitable for London where for many people the aspiration is to own a home but the reality is that they will never be able to raise the deposit to do so.”