Cost Rental for the Future
A privately funded solution for social infrastructure and the private rental sector. Below-market rents. Secure tenure. No new grant required.
How Cost-Rent Works
A registered charity purchases homes outright using a 40-year amortising bond. Rent covers cost of provision only — no profit extraction, no market pricing.
Charity issues a bond
A 40-year amortising bond at 6.5% coupon, secured by a first charge on each property. No mortgage, no BTL lender dependency.
Homes bought outright
Properties purchased at a 10% procurement discount. SDLT exempt. Corporation tax exempt. Each home held permanently for community benefit.
Rent covers cost only
Bond payment + maintenance + management. Fixed bond payment means rent diverges further below market every year as market rents rise.
Who It's For
Investors
A fixed 6.5% coupon with monthly principal return, secured by first-ranking charge on property. 38% equity build by year 10 (LTV 62%) provides refinancing optionality.
WAL ~28 years · Self-sustaining from year 1Housing Partners & Policymakers
Viable in 255 of 290 English local authorities. Strong yields in Manchester (~10.4%), Liverpool (~10.3%), Newcastle (~10.8%), Birmingham (~9.8%). No new subsidy required.
48% of LAs strongly viable · Crossover by year 2Tenants & Communities
Stable tenure with rents that fall below market from year 3. After the bond is repaid, tenants save approximately 57% versus projected market rent — permanently.
Secure tenure · No profit extractionGet Involved
Whether you're an investor, a local authority, a housing association, or a community group — the model is ready.