Hopes pinned on buy-to-rent scheme

It means all money paid in rent over the next 36 months will go towards buying the property.

MacDonald Egan sales and marketing director Sarah Bailey said: “I’ve been in the business for 25 years. I was thinking back to the last recession and a lot of the things we did then wouldn't work this time.

“So I thought if we can’t sell we will rent it, but what can we do to make it more desirable.

“Previously we have seen other developers offering buy to rent schemes but predominately for a shorter period.

“This does not provide any security for purchases especially when reports say the market will not recover until 2010.

“With this in mind, we are giving the chance for the everyday London worker to buy at the current market price and benefit when the market picks up again."

Rental prices will start from £850 to £975 for one bedroom apartments and between £1,100 and £1,200 for two bedrooms.

By 2011 the tenants will be able to buy the flats from £205,000, before taking away the money paid on rent.

Or if they want they can just walk away from the scheme, leaving their investment.

Ms Bailey said: “Renters would be saving a 10 per cent deposit without having to think about it by just paying their normal monthly rent which they would ordinarily do.

“The difference is their rent isn’t going into their landlord’s pocket but into securing a home for the future.�

So far seven people have decided to rent homes at Princess Louise, although this is just for a year’s rent and not part of the scheme.

Princess Louise, which opens in about four weeks, is the first of the developments MacDonald Egan is making available through a rent-to-buy scheme.

Others to follow include Stanley Street at New Cross and Barmeston Road in Catford.

The Zone 2 Princess Louise site is described as having “light apartments with big windows�.

It is close to overground rail and DLR services and is in a “vibrant and arty part of London�