New Government scheme to help first-time buyers

Permalink: New Government scheme to help first-time buyers
by Kay Murchie

A new scheme announced by Housing Minister, Caroline Flint, called ‘Rent to Home Buy’ is hoped to increase housing supply and help first-time buyers get onto the property ladder.

Under a pilot scheme, households earning below £60,000 per annum will be able to ‘rent first and buy later‘, with properties initially let for at least 20% less than the market rate.

Other plans being outlined include the location of new local housing companies which would see councils and developers using surplus land for homes.

The Rent to Home Buy scheme is to be implemented following falling property prices and the mortgage drought which has meant first-time buyers have been unable to purchase a home. It is hoped that the scheme will enable 75,000 onto the property ladder.

According to the Royal Institution of Chartered Surveyors, a first-time buyer couple on a low income need to save a year’s worth of their take-home pay to purchase their first property.

Ms Flint said the Government is determined to continue to take action to promote long-term stability and fairness in the housing market.

Ms Flint added that housing supply must be increased as the growing and ageing population will only see affordability worsening.

According to Ms Flint, the first areas to run local housing companies for housing developments on surplus council land are Barking and Dagenham, Manchester, Newcastle and Nottingham.