A property company has acquired an entire residential block in London to develop its Rent-To-Buy (RTB) model.
In general, Rent To Buy works for the individual through a contract where someone who rents now and has either the option or the obligation to buy the property later.
Keyzy – which has just purchased the residential block in Wandsworth, south London – offers prospective buyers a two year rental period before purchase.
The full amount paid in rent is then credited against the future purchase price. The monthly rental cost is locked-in for two years and the purchase price is decided on day one.
The Wandsworth block consists of 18 two-bedroom and four one-bedroom apartments in a two-storey building.
Rents start from £2,200 a month for a one-bedroom and £2,500 a month for a two-bedroom. Buy later prices start from £625,000 (or £572,200 after rent is given back).
Keyzy’s growth strategy focuses on areas where first time buyer demand outstrips supply, and is facilitated through a £130m funding programme secured last year.
Jeremy Matallah, co-founder, says: “[This] is exactly the kind of neighbourhood we want to showcase. It’s a fantastic development in an area where many people can comfortably afford market rents but struggle to save the deposit needed to buy.
“Our model bridges that gap. By allowing customers to put two years’ rent towards a deposit, we’re giving more Londoners a realistic pathway into homeownership while creating long-term value for our investment partners.
“This is our fourth London development and demonstrates the momentum we’ve built in just three years as we continue to grow our portfolio.”
