26 Oct 2023
October 2023: HomeNow is a rent to buy home purchase scheme that aligns the interests of residents (tenants) with the interests of HomeNow (the landlord). The business seeks to offer a viable alternative to the 'bank of mum and dad', as well as other more established purchasing options, that work for all parties.
HomeNow is focused on helping residents get on the property ladder by buying a home and subsequently renting it to them at a fixed price for a five-year period. Residents receive one third of the increase in value during their tenure, to use as a contribution towards the mortgage deposit when they come to buy the property.
The business currently has properties in the scheme across Kent, Surrey, Essex and The Midlands. Prices range from £150,000 to £400,000.
Jonathan Potter, co-founder of HomeNow explains: “The idea is that residents should feel like homeowners as they are earning equity and ultimately, will hopefully own the property themselves. However, they will still receive the equity if they don't decide to buy.”
Initially, residents source the property they want to live in and then approach HomeNow. Once HomeNow has approved the property, they will carry out the necessary negotiations with the vendor, proceed with the purchase; paying the stamp duty, legal and conveyancing fees, and then become the landlord. HomeNow complies with all landlord obligations such as gas safety and electrical checks, in line with traditional tenancies.
Jonathan Potter: “We are very keen that from the beginning residents should treat the properties as if they are the owners, that includes decorating and home improvements. We conduct annual inspections to ensure the property is being well maintained but other than that, the residents have full autonomy.”
A key advantage of the scheme, especially given current volatility in the rentals market with rising rents and the cost-of-living challenges, is the security it gives over the five-year period. Residents are locked in for the initial five-year period, removing an entire layer of worry. This is especially appealing to anyone currently spending a disproportionate amount on rent, without having adequate funds for a mortgage.
Gareth Ship, COO: “We firmly believe that the HomeNow scheme is reforming home ownership in the UK and in doing so, will contribute to a new generation of homeowners.”
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For press enquires please contact: Deborah Battsek, pr@deborahbattsek.com
Notes to Editors
About HomeNow: HomeNow is a 'Rent to Buy' scheme that offers people unable to afford to save for a deposit, the chance to earn equity in their home rather than struggling to save whilst paying rent.
Potential residents book an initial consultation and if suitable, proceed to the income and credit check stage. If all is in order, they can then put forward any property for sale in England and Wales. Eligible applicants can rent a home with a purchase value of up to 5.5 times their income.
HomeNow residents have the security of a five-year fixed rental agreement, meaning there will be no increases over the rental term. Residents are able to decorate, maintain and renovate their property as if it were their own. At the end of 5 years, residents receive a third of any house price increase, with the legal right to buy the property from HomeNow and using their share in any uplift in value as a deposit contribution.
Jonathan Potter, Co-founder
Jonathan was responsible for the overall concept for HomeNow and his primary ongoing focus is new product creation; structuring and pricing to ensure the social and investor goals are achieved. In 2009, Jonathan co-founded (and was a Director of) CurrencyFair Ltd, a foreign exchange business headquartered in Ireland, with employees in UK, Australia, Greece, Hong Kong, Poland and Singapore. Prior to CurrencyFair, Jonathan gained 14 years' experience in capital markets, starting his career at JPMorgan.
Gareth Ship
Gareth is responsible for the overall management of the HomeNow scheme. His primary focus is on delivering the processes, structures and systems required to get as many applicants as possible signed up. He is also responsible for overseeing existing Residents to ensure the smooth running of the scheme.
Gareth has a wealth of experience gained for his time in the military, Deloitte and investment banks. He was previously COO for Brickowner where he set up and launched their property investment platform connecting certified investors with UK property developers and asset managers.