Partner Article

Innovative new housing scheme could end housing crisis

Local property company Gentoo has launched a new initiative backed by the FSA which could revolutionise how those previously unable to afford a mortgage could finally buy their first home.

The ‘Genie’ scheme will allow purchasers to acquire an increasing share in their home over a 25 year period, without the need for a deposit or mortgage.

The plan gives buyers the same rights as traditional buyers, and also gives them the option to leave the scheme at any stage by selling their accumulated shares back to Gentoo, or putting the property on the open market.

Chief Executive of the Gentoo Group Peter walls believes that the home plan will finally address one of the major housing issues of our generation.

He commented: “Last year 200,000 fewer first time buyers entered the housing market compared with the decade average up to 2007.

“Genie will not only create new first-time buyers that otherwise may never have been able to get on the property ladder, but also create a completely new and valid consumer choice for the future.”

Gentoo will now provide funding for an initial 60 properties, with plans to increase the fund to 100 by the end of the year. It is hoped that the homes will be fully occupied by the end of the first quarter of 2012.

Due to the success of a pilot scheme in 2010, Gentoo now hope to roll the project out nationwide in the next few years, and is already considering locations and long term investors to grow the fund.

Steve Hicks, chief operation office for Gentoo added: “The housing market needed an innovative new product to provide a solution to the impending housing crisis and we are delighted to have created a product that has been approved by the Financial Services Authority.

“While Genie is currently only available on a small number of properties in the North East of England, it has huge national potential especially in London and perhaps even globally.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .