29.09.14
Will the new 'Rent to Buy' scheme work?
Eric Pickles has launched a new £400m programme to boost the building of new rental homes, which he claims will help hard-working people later upgrade into home ownership.
He states that the new ‘Rent to Buy’ scheme provides more flexibility for people who want to rent affordably now, save for a deposit, and then either buy the new home (or a different home) later.
Under the scheme, housing associations and other providers can bid for a share of £400 m in low-cost loans to build up to 10,000 new homes across the country to be built from 2015 to 2018 – they will mainly consist of one and two bedroom apartments.
The scheme, in theory, is a great idea. However, in reality, are the 10,000 homes going to even scratch the surface of a chronic supply problem?
Pickles says “this new scheme will help increase the provision of low-cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line”. We’ll have to wait and see if this is the case.
Tell us what you think – have your say below or email [email protected]