Volution portfolio company Wayhome, which helps aspiring homeowners achieve homeownership when a mortgage doesn’t work, has raised £8m in a Series A equity funding round. The investment will support further growth as Wayhome continues to disrupt the conventional home buying space with its unique Gradual Homeownership model.
The Gradual Homeownership model is a hybrid part-buy part-rent model, enabling people to buy a home worth up to 10x household income with just a 5% deposit and no mortgage or borrowing required.
Wayhome’s strategy for continued growth and expansion includes forging further partnerships with mortgage brokers and lenders. The business currently has an annual rate of £100m deployed in customer property purchases and, with the new raise, the aim is for this to double to £200m per year within 12 months.
Nigel Purves, CEO of Wayhome said: “Due to the way that the Gradual Homeownership model works, the rising interest rates seen since September’s controversial mini-budget have delivered even greater demand for our product. With the recent ending of the Help to Buy scheme there are now hundreds of thousands of would-be homeowners seeking alternative ways to access the property ladder. This significant raise will fuel our ambitions to double the pace at which we can help new homeowners within 12 months, whilst simultaneously delivering break-even. Homebuying has been somewhat traditional for centuries. Our alternative is the best of all worlds as a part buy, part rent proposition that allows our customer to buy their ideal home, in their ideal location, today without waiting for years.”
James Codling, Managing Partner of Volution added: “We're proud to support Nigel and the Wayhome team on their mission to expand access to homeownership. Wayhome is a game-changer for those looking to get on the housing ladder, and we're excited to help them achieve their ambitious growth plans.”