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'Rent To Buy' sparks £2.5 million sales rush
Downtown Living in Preston say their initiative shows what can be done to kickstart the flagging property market and proves there is pent-up demand to buy new homes.
The "Rent To Buy" scheme on offer at the Lancashire developer's flagship Room Apartments in Preston is one of the first of its kind in the UK.
Buyers rent their apartment for 18 months before purchasing their new home at today's price ??" and they get 100 per cent of the rent they have paid back to use as a deposit on purchase.
Already 17 buyers have snapped up homes, valued in excess of £2.5 million, at The Room, a landmark multi-million pound development on the edge of Preston's ambitious £750 million Tithebarn regeneration project.
The room was already the city's best performing scheme of 2008 before Rent To Buy was launched, with off plan sales having accounted for more than 65 per cent of the 85-apartment development.
Frank Bretherton, chairman of Downtown Living, believes the Rent To Buy scheme shows the need for a new realism in the market and how helping first-time buyers can reap rewards.
And he says the massive response to it shows the property industry ??" and the Government - a way of lifting the residential property market.
He said: "We believe our Rent To Buy scheme, which allows people to rent an apartment for a fixed period before committing to owning it, is simpler to understand and offers buyers a clearer and easier way to become first-time owners than some of the Government's initiatives.
"The beauty for those taking advantage of this scheme is that they will be protected against falling prices and won't be paying 'dead rent'.
"From our point of view it is a real way of ensuring properties are not standing empty and shows a commitment to first-time buyers and to driving the market forward.
"The importance of property-led regeneration in cities like Preston can not be underestimated. We have to remove the growing barriers that prevent people from becoming homeowners."
Beverley Kemp, regional senior manager for Countrywide, estate agents at The Room, added: "We expected Rent To Buy to interest potential buyers, but we didn't expect it to do this well!
"The response has been phenominal and it continues to grow.
"We are able to give people confidence and time, so they can work towards securing the best mortgage knowing a good proportion of the deposit will be taken care of.
"And, as they work towards getting into a sound financial position to buy, they also have the benefit of living in their own new home.
"I believe the success at The Room points the way forward.
"Innovation is the key because developers cannot just sit back and wait for things to happen. They have to make things happen.
"And Downtown Living has certainly done that."
The Rent To Buy scheme is available on a selection of the one and two bedroom apartments.
One first-time buyer is Noel Billington who is delighted to be getting a helping hand on the property ladder.
The single 26-year-old auto-electrician moved into a one bedroom apartment at the stylish city centre development in September.
And in 18 months time he aims to buy his home, putting the rent he has paid over that time towards his deposit.
Noel is impressed with the Rent To Buy deal and believes it is a major help to young people struggling to get on the property ladder in today's toughening economic times.
He said: "I think it is tremendous, a real help to people like myself looking to move out of the rental sector and become home-owners.
"The days of the 100 per cent mortgage seem to have gone and it is not easy to get the cash together to be in a position to buy.
"What this deal does is buy time. It also means that my rent is not dead money - I'm paying it with a real purpose.
"When I take up the option to buy at The Room I will get it all back and it will become part of my deposit.
"That saving aspect is extremely important when you are trying to become a first-time home-owner and Downtown Living should be applauded for recognising that and doing something about it.
"I've looked around at all the options available locally and this seemed to be the most attractive by far.
"This is exactly the sort of initiative the Government should look at."
The Room Apartments is the first residential project by Downtown Living, set up by a group of Lancashire business people who saw the potential for city living in Preston.
It is a 21st Century, high quality and contemporary building with fresh, clean lines. Most apartments at The Room will have a balcony or terracing.
Its Lawson Street location sits on the edge of the ambitious £750 million Tithebarn scheme, led by property giant Grosvenor, which will include the creation of major retail, residential and leisure facilities in the heart of the city.
Frank Bretherton, chairman of Downtown Living, said: "We believe we have now put together an offer that will help more people enjoy their own home in a prime location.
"The Room is giving Preston a new benchmark in terms of quality apartment design and we feel we have produced modern, stylish and high quality homes that appeal to both owner occupiers and investors."
Preston architect and design experts Frank Whittle Partnership are acting as project managers and award-winning Lancashire-based Construction Partnership UK (CPUK) is building the development.
For more details of the Rent To Buy scheme and new sales at The Room, or to arrange a viewing of the show apartments, call 01772 889933 or 0845 843 7666 or log on to www.theroomapartments.com
http://www.lep.co.uk/businessnews/25m-of-sales-for-Preston.4621110.jp