Rent Today, Own Tomorrow
Saving a deposit while paying rent keeps thousands of people locked out of ownership. Our New Build Plan changes that. You can move into a brand-new home today, rent it for 2 years, and then buy it – with a 5% deposit contribution from us to help with your mortgage.
How it works
Choose your home
Select your perfect home from our collection of brand-new properties.
Move in straight away
It’s yours to enjoy from day one.
Buy in 2 years
At the end of your plan, use your 5% deposit contribution from us towards your mortgage to buy your home.
Why choose the New Build Plan?
Speed
Move in quickly from our ready-to-go, brand new homes.
No deposit upfront
Start living in your home without savings.
Fixed rent for 2 years
Rest assured, knowing there will be no increases to your rent.
5% deposit contribution
Get money back when you buy your home to boost your deposit.
Certainty
From the start, you know this is the home you’ll buy.
Simplicity
Straightforward checks, a clear 2 year pathway to home ownership.
The New Build Plan is perfect for those who want a brand new home and our quickest path to ownership.
With the New Build Plan, you choose your home from our collection, we buy it, and you move in straight away.
Eligibility Factors
Here’s an illustration of the key figures related to a £300,000 property purchased with a HomeNow Home Purchase Plan.
Monthly Rental Price: £1,875
Note: although HomeNow rent will in some instances be higher than open market rent, HomeNow residents enjoy features ordinary tenants do not, including:
- The right (and obligation) to purchase the property at the end of the tenancy at market value
- The right to a refund equivalent to 5% of the property value (Rental Refund)
- The ability to make cosmetic changes to the property during the rental term, subject to approval
- Fixed rent for the entire 2-year term (no annual rent increases!)
- A stable 2-year rental contract, rather than the uncertainty of a standard 12-month tenancy agreement
Plan Term: 2 years (at the end of this period, you will be obliged to purchase your home with the help of your Rental Refund – see below). All mortgage examples are for illustrative purposes only and it is your responsibility to arrange a mortgage or separately to finance your purchase of the property.
| Change in value of property | Minimum future purchase price | Increases by 10% | Increases by 20% |
|---|---|---|---|
| Future purchase price | £302,000 | £330,000 | £360,000 |
| Costs incurred by HomeNow when buying your home | £2,000 | £2,000 | £2,000 |
| Rental Refund amount | £15,100 (5% of the Market Value of the property) | £16,500.00 (5% of the Market Value of the property) | £18,000.00 (5% of the Market Value of the property) |
| Rental Refund as deposit equivalent | 5% (You would not need any additional savings to purchase with a 95% mortgage).  | 5%  (You would not need any additional savings to purchase with a 95% mortgage).  | 5% (You would not need any additional savings to purchase with a 95% mortgage). |
| What happens if you’re not eligible for a mortgage? | You will be obliged to purchase the property unless HomeNow, at its sole discretion, waives the obligation. HomeNow could terminate the HPP and sell the property, in which case you would be obliged to vacate the property with immediate effect. Alternatively, HomeNow may, at its discretion, offer you an HPP extension. | ||
| What happens if I don’t want to purchase the property anymore? | HomeNow will generally only exercise its discretion to waive your obligation to purchase the property if extenuating circumstances mean you cannot complete. If you merely change your mind, but can still afford to buy the property, this will not constitute extenuating circumstances. | ||
| What if my circumstances change? (extenuating circumstances) | You are committed to purchasing the property at the end of the tenancy. However, HomeNow may, at its absolute discretion, agree in extenuating circumstances to bring the arrangement to an end. This might include where you have had to move location for work, unemployment, illness or other circumstance which materially affect your ability to purchase the property at the end of the term of the HPP or where property values decrease so that you are not entitled to a Rental Refund. At the end of the term of the tenancy HomeNow may also agree, in its absolute discretion to waive your obligation to purchase the property if there are extenuating circumstances which mean you cannot afford to buy it. HomeNow may require confirmation of these circumstances or your financial position by an independent third party. | ||
| Costs at the beginning of your HPP | A Reservation Fee equivalent to one month’s rent, we pay all other costs associated with buying your home. | ||
| Costs during the term of your HPP | You are responsible for contents insurance and service charges. | ||
| Costs if you exit early | Up to £15,000 based on a £300,000 property If we agree to an Early Redemption, you will be charged a fee based on the price we purchased the property at. This reduces based on the term remaining on your HPP. If you terminate within the first year this is 5%, and in your final year this is 4%. For example, if you exit in year 1, based on a £300,000 property you would pay £15,000 in Early Redemption Charges. This is only paid where we approve your request to exit early. | ||
| Costs at the end of your HPP | If your home is worth £360,000 at the end of your term HomeNow estimates your total costs are likely to be in the region of £3,660- £6,560. Product Fee: You will be charged an HPP Product Fee of 0.5% of £360,000 which equals £1,800. You are responsible for your own mortgage legal costs, mortgage entry costs. Stamp Duty: HomeNow will pay any costs arising. Mortgage Fee: Mortgage providers may charge a fee to provide your mortgage, the price ranges from £0 to over £2,000. You might be able to include it as part of the money you borrow from your mortgage provider. Survey Fee: Fees for a survey depend on how detailed they are and the size of the property. Prices range from £300 - £1,500. Conveyancing fees: usually include the transfer of deeds and all legal paperwork. This can cost around £1,260. The Land Registry Fee: A charge to have the legal ownership of the house changed to your name on the Land Registry record. This is based on the value of the property. See registration fees applicable to you. https://www.gov.uk/guidance/hm-land-registry-registration-services-fees | ||
If you do not wish to proceed with your HomeNow Home Purchase Plan once you have been approved, and HomeNow has incurred costs, you will be responsible for these costs, however HomeNow reserves the right to waive them. Details can be found in HomeNow’s Tariff List.
Is this right for you?
Choose the New Build Plan if:
- You’re looking to move quickly into a brand-new home.
- You can afford monthly mortgage payments but don’t yet have a deposit saved.
- You want the security of a clear, short path to ownership.