Helping hand on to the property ladder
Published on 9th Oct 2014
The government has launched the Rent to Buy Fund in an effort to encourage the construction of new rental homes which tenants can buy at a later date. The Fund will provide low cost loans to home providers to build the homes, which must then be let at below-market rent for at least seven years to households who have never owned a home before. By saving on rent, tenants can then save for a deposit to buy their home. When a home is sold, the provider can use the proceeds to build more affordable homes in the area.
“It is a useful way of getting people on to the housing ladder” says Matt Ashley “as it keeps the subsidy within the social housing system when a property is sold, rather than it being lost as happens with traditional right to buy”. Bids will be assessed from 12 November 2014, so that construction can start in 2015.
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