The fund manager has partnered up with affordable housing developer QSH to deliver thousands of affordable homes using a finance model that requires little or no government subsidy.
The team trading as Octopus QSH has picked Wates Living Space, which has a stake in the new set up, to deliver the first scheme of 106 new homes in Doncaster.
The Martindale development will include 106 two, three and four bedroom homes, all of which will be available through QSH-rent-to-buy.
Under this innovative scheme half of tenants’ rental payments – set at affordable rent levels – are put towards the deposits they need to secure a mortgage to buy their home.
Octopus is already an established player in the property market through Octopus Healthcare, a leading healthcare property fund manager and developer business, and Dragonfly Property Finance, a bridging finance company, which is also part of the Octopus group.
The homes it develops will be available under several different rental and affordable home ownership models: to rent, rent-to-buy, deferred purchase and extra care.
Tenants are able to save up to 10% of the purchase price and have the option to buy their property within their first ten years of living there. Those who do not purchase during this time can continue renting their home. They are able to pay affordable rents – which are 80% of typical market rents – for up to 20 years.