A UK fintech firm helping aspiring homeowners get onto the property ladder has secured asset-backed funding to acquire more than £130m worth of homes over the next 18 months.
Keyzy aims to provide a two to three-year path to home ownership in England and Wales by fixing the rent on a property and providing an option to buy the home at a pre-agreed price.
Renters still need to pass an affordability application and can apply up to 100% of their rent payments towards a mortgage deposit if they choose to purchase.
Keyzy, which has been registered with the Property Redress Scheme since launch in 2021 and has had no complaints, is the landlord while the property is rented and will be responsible for maintenance such as storm damage.
Tenants sign a lease for two to three years and can either extend it, purchase the home or leave when it expires.
The investment has come from Crayon Partners, a real estate private equity firm specialising in alternative living sectors and will enable Keyzy to expand its portfolio by 250-plus homes across Greater London by 2027, specifically targeting young professionals and key workers.
Keyzy and Crayon Partners are already acquiring £30m of properties.
While Keyzy has historically been the outright owner and landlord for properties, this new PropCo funding will see dedicated PropCos funded by Crayon Partners that will own the properties.
Keyzy will be responsible for sourcing properties, generating demand, underwriting applicants and supporting residents through to acquisition after two-year rentals.
The platform offers new build properties that are under warranty from the developers as well as 10 year NHBC cover so building-related issues tend to be managed by the developers but Keyzy is the first port of call.
Keyzy’s first cohort of residents are now “graduating” from renting to owning, using their accumulated rent payments to purchase their properties from Keyzy after living there for several years.
Simon Groll, co-founder of Keyzy said: “This funding is testament to the impact Keyzy has made in helping renters escape the savings trap and achieve their number one financial objective: to own a home.”
Paul Coates, director of Keyzy, said: “Homeownership has become increasingly out of reach for too many people. Keyzy’s bold rent-to-own model, supported by our Klink coaching platform, creates a clear route for renters to become buyers. With this funding, we now have a real opportunity to help hundreds more people realise their dream of owning a home.”
Source: https://www.estateagenttoday.co.uk/
