Lib Dems unveil new idea to help homebuyers

On March 13, Nick Clegg, the leader of the Liberal Democrats, announced plans to help more people in the UK to get on the property ladder.

Under the “rent-to-own homes” scheme, it is proposed to allow those who have been renting the same home in England for 30 years to be granted full ownership of that property. Equity in the property would be acquired gradually. Tenants would only need to pay rent at the market rate.

The idea behind the scheme is to help the young people of today to enter the housing market, and eventually own their own home. It is proposed to make 30,000 new homes per year available under the scheme.

Currently, statistics suggest that many first time buyers cannot save up enough money for the deposit. They either have to continue to live at home with their parents, in rooms or enter the rental market. The Labour Party has predicted that if the current trend continues, barely a fifth of people under the age of 35 will own a home in 2020 – down from 60% in 1991.

The fact that at any time these tenants could cash out and buy an alternative property may encourage more homes to be built in the UK, because they would swell the pool of potential buyers. This will mean that architects in the Wirral, and other parts of the UK, could be planning new homes for the scheme, as well as more for the general market.

Posted by Mark
March 20, 2015

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