Under the scheme, Wellingborough Homes can bid for a share of £400 million in low-cost loans to build up to 10,000 new homes across the country to be built from 2015 to 2018 - they will mainly consist of 1 and 2 bedroom apartments.
Wellingborough Homes must then make the homes available for rent at below-market rates for a minimum of 5 years. This fixed period will give tenants the opportunity to save up for a deposit and get ready to buy their own home.
At the end of the period, the tenant will have first refusal to buy the property – alternatively they may choose to move out and buy a different property, or rent another property with Wellingborough Homes.
If the home is sold, Wellingborough Homes will then have the option to use any returns on their investment to build even more affordable homes in the area. Alternatively, they will still have a home, which they can look to rent at an affordable rate to another tenant who needs help to buy.