The funding will allow Gentoo to launch its Genie Home Purchase Plan in the capital.
The Genie Home Purchase Plan is a 30 year homeownership plan that helps people purchase their property without the need for a mortgage or deposit. It is primarily aimed at first time buyers and long term renters. Purchasers enter an agreement which enables them to make monthly payments, each time a monthly payment is made they buy shares in the property. At the end of the agreement, the purchaser will own the property outright. There are other advantages to using this scheme; for example, there is currently no stamp duty chargeable, no exit fees and there is some flexibility with the payments.
Gentoo is now seeking a London developer to partner with in order to deliver these planned new homes; they would like to acquire new build properties or development land. It is expected that the first properties will be available to purchasers before the end of the year.
This follows a successful pilot scheme in the north east of England where 94 families moved into their own homes. Genie is now targeting properties in London to increase home ownership.
Funding for the 10 year partnership has come from the mayor's Revolving Fund which gives recoverable loans to fund new forms of affordable housing.
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."
Planning expert Jennifer Holgate of Pinsent Masons, the law firm behind Out-Law.com, said: "It will be interesting to see the way in which this innovative scheme progresses in the capital, in comparison to its Sunderland counterpart. Particularly, when taking forward planning applications, the way in which affordable housing is dealt with within potential section 106 agreements and as a material consideration in the 'balancing' of a planning decision should form part of a watching brief for those in the residential sector."