Boost to UK affordable housing with £1bn investment

A London-based firm has announced £1bn worth of investment over the next five years in intermediate rent-to-buy homes (IRTB).

With Citi UK acting as a structuring advisor and financing arranger to institutional capital, AHTO will purchase newly built affordable homes or private sale homes from either housing associations or UK housebuilders.

AHTO is set to focus on investing up to £150m per project in order to secure residential developments of up to 500 homes, including apartments and houses, in cities and commuter towns such as London, Leeds, Bristol, Manchester, Reading, Dartford and Woking.

Reportedly, 1,500 homes have already been delivered through the Rent-to-Buy structure in England and Wales. Over thirty English Councils have already approved the IRTB approach.

Sam Senchal, chief investment officer of AHTO said: “The only viable solution to the UK’s affordable housing crisis, without grant funding or subsidies, is to channel institutional investment into the market.

“The Intermediate Rent-to-Buy model brings together our partners and institutional investors to deliver more affordable homes for families with less complexity and cost compared with current affordable home models.

“At AHTO we are passionate about helping provide high quality homes for people on lower incomes and supporting our Housing Association partners to help customers become homeowners.”