Trevor Stunden – Partner at Kettel Homes, and Lars Kreutzmann – Partner at Kettel Homes, provide an update on the single family residential Rent to Own model with Property Wire:
How do you see more organisations investing in the Rent to Own model?
Trevor: We are launching at a time when institutional investors are increasingly looking to deploy capital into the UK residential property market, particularly in multi-family and single-family rental, the latter being our area of expertise. The primary challenge for investors is achieving scale. Large multi-family developments require significant time and capital, from planning and construction to lease-up, yet many investors have pursued this route due to a shortage of available assets.
Our approach provides a faster, lower-risk alternative by enabling the aggregation of substantial single-family residential portfolios without exposure to planning, construction, or leasing risks. We believe this presents a highly compelling proposition for institutional capital, offering both scale and efficiency.
Additionally, our model is cycle-agnostic, ensuring resilience in changing market conditions. We have integrated, symbiotic partnerships with housebuilders, creating a win-win dynamic. Housebuilders benefit from opening up their homes to a new segment of buyers, while first-time buyers, who might otherwise be locked out of the market, gain a realistic and structured pathway to ownership.
This alignment between investment, development, and homeownership makes our model uniquely positioned to drive both financial returns and social impact in the UK housing market.
How can we boost public awareness of the Rent to Own scheme?
Lars: Addressing the UK’s housing crisis requires a multifaceted approach that prioritises homeownership as a key outcome. If both government and society are serious about making homeownership a priority, we must actively support alternative pathways to getting people on the housing ladder. Right now, most investment is directed towards pure rental, which does help increase housing supply and ease some pressure, but it doesn’t solve the underlying issue, it simply postpones it.
We know there is a significant demographic of key workers and the squeezed middle who want to be homeowners but need a new pathway to achieve this goal. For more awareness to happen, we need an injection of more creative solutions to come to market, with rent-to-own as one example.
Trevor: While renting will always have its place, homeownership provides financial stability that renting cannot replicate. A broader education effort is needed to raise awareness of this, not just among individuals but across government, policymakers, and industry. Innovative models like Rent to Own offer a much-needed alternative, introducing flexibility to what has traditionally been an inflexible path for first-time buyers.
There is a large, underserved demographic, including key workers and those in the squeezed middle, who aspire to own but are blocked by current market conditions. By supporting new homeownership models, we can create a genuine, long-term solution rather than continuing to defer the problem.
Is there room for both shared ownership and Rent to Own schemes?
Trevor: Yes, we support all tenures that help address the significant challenge of increasing access to high-quality, long-term housing in all its forms. The market needs greater flexibility and optionality to meet people’s diverse housing needs. That said, we believe Kettel’s Rent to Own programme is the better option for those who ultimately want to own their home. Our structured approach, with a defined option-to-purchase period, provides a clear and predictable pathway to homeownership. In contrast, shared ownership functions more like a long-term rental with some equity exposure, offering security as long as rent is paid but rarelyleading to full ownership. With low rates of staircasing, most people exit shared ownership without ever purchasing the property outright.
Shared ownership is best suited for urban areas where buying outright is unattainable, providing a degree of stability for those who prioritise security of tenure over full ownership. For those focused on eventually owning their home, Kettel’s model offers a more direct and structured route to achieving that goal.
Lars: From a tenant’s perspective, there are high costs associated with “staircasing,” service charges, and other expenses. Additionally, selling a property when you own only a percentage is more challenging. For institutional investors, shared ownership also often results in portfolios that are never fully owned, limiting the attractiveness of such investments.
What housing schemes should Labour introduce to boost housebuilding?
Trevor: Government support, underpinned by progressive policies and agencies like Homes England, is essential for driving innovation in the housing sector. Currently their mandates are too narrow. A dedicated housing incubator, backed by seed capital, could provide the foundation needed for new models to scale, fostering solutions that increase housing supply and improve accessibility. The UK has done this with tech and VC through British Patient Capital and the British Business Bank.
This would promote strategic investment in models that create or enable additionality, delivering homes that wouldn’t otherwise be built, and would have a lasting impact on housing availability. There is no single solution to the UK’s housing challenges, but without openminded support and commitment from Labour leadership, the sector risks being constrained by traditional approaches. A more dynamic, innovation-led strategy is needed to break through these limitations and deliver meaningful, long-term change.
How can the UK boost its adoption of heat pumps?
Trevor: Education is key to driving widespread adoption of heat pumps. With Part L now in effect and the Future Homes Standard (FHS) on the horizon, heat pumps will soon be standard in new builds. However, the real challenge lies in retrofitting existing homes currently reliant on gas heating. Many homeowners perceive heat pumps as an unfamiliar and impractical solution, believing the installation will be expensive, invasive, and disruptive. Overcoming this misconception requires better consumer education from both the government and private sector, reinforcing that heat pumps are a viable, efficient replacement when a gas boiler reaches the end of its life.
Beyond awareness, cost remains a significant barrier. Like any emerging technology, heat pump prices, both for units and installation, will decline over time, following a Moore’s Law-style trajectory. As adoption increases, economies of scale and advancements in manufacturing will drive costs down, making heat pumps financially competitive with gas boilers, both in upfront investment and ongoing running costs. To accelerate this transition, targeted incentives, financing options, and clearer information about long-term savings must be prioritised. The combination of education and cost reduction will be critical in making heat pumps the go-to heating solution for the UK’s existing housing stock.
To learn more about Kettel Homes visit https://www.kettel-im.com/
