Fund manager Octopus Investments and facilitator QSH have formed an affordable housing venture that will debut in the market with a 106-home development in Doncaster. Wates Living Space is also an investor and strategic partner in the venture, Octopus QSH, and will deliver the first scheme.
Octopus, which controls funds of more than £5bn, has established a business unit to deliver housing schemes across the UK. Partner QSH matches housing need to institutional finance to deliver affordable housing with little or no government subsidy.
The first scheme, the Martindale, will include 106 two, three and four bedroom homes, all of which will be available through the QSH rent to buy deal. Under the offer half of tenants’ rental payments – set at affordable rent levels – are put towards deposits to secure a mortgage to buy their home.
Tenants are able to save up to 10% of the purchase price and have the option to buy their property within their first 10 years of living there. Those who do not purchase during this time can continue renting their home, being charged 80% of typical market rents for up to 20 years.
Mario Berti, head of the specialist finance team at Octopus said, “The government desperately needs to create more homes in order to meet its policy objectives and we will be providing innovative solutions to local authorities and housing associations to help solve this problem.”