Harborough Local Plan 2011-2031, Proposed Submission

We represent Rentplus, a company providing an innovative affordable housing model that delivers affordably rented homes to buy (a 'rent to buy' model) for people who aspire to own their own home, but are currently unable to save for a mortgage deposit.

We have previously responded to the early draft policies consultation on the Local Plan in 2016. We have not included the Affordable Housing Statement appended to that consultation response, but it is important to state that rent to buy homes, as delivered by Rentplus, are an important component in responding to local housing needs and in meeting aspirations for home ownership, in partnership with local planning authorities and Registered Providers. Details of completed and forthcoming schemes can be viewed on the Rentplus website www.rentplus-uk.com.

The flexibility of this policy sets out in terms of tenure split is very positive, and should enable developers such as Rentplus to bring forward appropriate housing proposals that respond to local needs. The policy should allow for the full range of affordable housing tenures and models, including rent to buy which has been highlighted for some time in a raft of Government consultations as one part of the solution to the affordable housing crisis. This most recently included the Government's Housing White Paper (2017) which sets out the proposed changes to the NPPF to update the definition of affordable housing.
A wide range of circumstances mean that many households cannot save for a mortgage deposit, and being homed in a current affordable house or private rented sector accommodation no longer meets their needs or aspirations. The Government's proposals, and specifically the rent to buy model that Rentplus delivers aims to 'plug the gap' created by this problem. The rent to buy homes are allocated as with other affordable housing tenures through the local choice based lettings scheme and targeted lettings plans. The Rentplus model provides homes at an affordable rent for those expected to purchase in 5, 10, 15 or 20 years with a 10% gifted deposit to assist purchase.

The reference in the policy to 'low cost home ownership' is preferable to 'intermediate' but should be amended to 'affordable home ownership' to more fully reflect the current and proposed definition of affordable housing as set out in the NPPF. This terms will more effectively allow developments to include the full range of affordable home ownership options, including rent to buy, which assists a great number of families into housing that enables them to save to purchase their home.
As the Government's housing policy is anticipated to change in early 2018 it is important for the council to adapt its policies to remain effective through flexibility and responsiveness to local and national change, to ensure it can be found sound.

The delivery of rent to buy housing reduces the pressure on other affordable housing, freeing up social rented and affordable rented housing for those with greater priority needs - one recently occupied Rentplus scheme was 30% filed by households previously living in social and affordable rented properties, releasing those homes for families in need. Residents have been delighted to finally access housing that not only meets the basic need for a good quality house but also their aspiration to own their own home - one Rentplus family has said:
"Our dream has long been to own our own home but with the high costs of renting combined with the need to save thousands of pounds for a deposit it's never been in reach for us. This model is ideal for our needs as we have the certainty of living in the home which we will one day own and the reduction in rent is making a huge difference to our lives."

To ensure Policy H2 can be found sound at examination we recommend that the policy include the above recommended change to the terminology on affordable home ownership options, and to include further reference within the supporting text to the full range of these. This may directly reference rent to buy, starter homes and build to rent to provide clarity as the Government has provided clear indication that these tenures are to be formally defined in the next iteration of the NPPF.

Without this we consider the policy will quickly become outdated and inconsistent with national planning policy, and ineffective in encouraging sufficient development diversity to meet local housing needs.