The Lib Dems have launched ‘Rent to Own’ – a housing scheme that helps first-time buyers build up a share in their home through renting. Young people will be able to buy their own home without a deposit to help them onto the housing ladder under these radical Liberal Democrat manifesto plans.
Commenting on the proposal Isle of Wight PPC David Goodall said:
This revolutionary scheme is a fundamental shift in housing policy and will give young people caught in ‘generation rent’ a chance at home ownership. It means working young people who are unable to afford a deposit will, rather than be trapped in rental accommodation forever, be able to own their own home.
First-time buyers will steadily build up a share in their home through monthly payments equivalent to rent until they own the property outright after 30 years, just like a normal mortgage. Under Liberal Democrat plans the Government would partner with housing associations and other providers to deliver ‘Rent to Own’ houses where monthly payments are no higher than market rent. Our policy forms part of Liberal Democrat plans to deliver 300,000 homes-a-year, with the government bridging the gap between private sector building and demand.
This scheme builds on ground-breaking work by social enterprise Gentoo Group, who have rolled out a similar scheme – called Genie – in the North East and plan to expand into London later this year.
Why this is necessary?
Deputy Prime Minister and Liberal Democrat Leader Nick Clegg said:
Peter Walls, Chief Executive of Gentoo Group, said:
How this works?
Housing associations
This model will be viable for Housing Associations because, though over 30 years they transfer ownership of the property, the monthly revenue is equivalent to market rent: in other words, at least 20% higher than Affordable Rent, and approximately 40% higher than Social Rent. We will partner with housing associations and other providers, such as Gentoo, to ensure monthly payments are no higher than market rent. Rent to Own homeowners will also be responsible for care and maintenance of their property, like other homeowners, reducing Housing Associations’ costs.
Gentoo
Genie is a social enterprise already providing homes on a similar model. Liberal Democrat proposals differ because we want to use government intervention to ensure payments are no higher than equivalent market rent.
For more information on the Genie Home Purchase Plan please:-
visit:-www.ownageniehome.co.uk or
email hannah.davies@coolblue.co.uk.
Central government involvement
Liberal Democrats will issue a prospectus to the affordable housing sector early in the next Parliament to identify the best method for intervening to deliver Rent to Own homes. We expect our delivery model to be based on land or equity investment to support providers, but will consider a variety of approaches
Numbers
Eligibility
, so only those who cannot buy on the open market will apply. We will exclude anyone who owns their own home already, however.
Application
This is a devolved policy matter and an England-only policy.
Other Liberal Democrat housing plans
Liberal Democrats have set an ambitious target of increasing the rate of house building to 300,000 a year, and build to the Zero Carbon Standard. Within the first year of the next Parliament, Lib Dems in government would publish a long term plan which sets out how this goal will be achieved.
To realise the plans a ministerial taskforce on housing would be appointed, hosted by the Cabinet Office to oversee this task. We will also publish proposals for at least ten new ‘Garden Cities’ in England, in areas where there is local support, providing tens of thousands of high-quality new homes, with gardens and shared green space, jobs, schools and public transport.