Despite the stamp duty holiday extension stealing the headlines in this afternoon's budget, the other major announcement for the property market was the confirmation of the new mortgage guarantee scheme, set to launch from April.
Covid-19 and its financial impact along with a tightening of lending criteria are threatening the homeownership ambitions of millions of people, causing Generation Rent to grow.
New homes at reduced rents give first-time buyers a chance to get on the housing ladder.
Liverpool residents could be given help to buy their own homes through a Rent to Buy initiative being set up by the city council’s new housing company, Foundations.
The homes are let out at 80pc of market rent, increasing by 1pc plus inflation every year. After a period of five to 20 years, tenants can then buy their home with a 10pc gifted deposit. When they are sold, Rentplus will try to replace them by working with councils.
The company is for-profit, and delivers returns back to investors from rental income and through sales of homes.
John Gildersleeve, chairman of Rentplus, said: “This additional funding is further testament to the faith in both our business model as well as our ability to deliver new, affordable homes and an alternative route to home ownership.
With the gap between wages and house prices sparking a huge fall in ownership in the UK, we look at schemes such as Rentplus that are helping those priced out
Plans have been announced for the UK’s first affordable rent to buy homes to be built on a development in the south west of England.
Plymouth based housing companies Persimmon Homes and Rentplus have signed an agreement to develop 19 new affordable rent to buy homes in the city to help tackle the region’s housing shortage and help people into home ownership for the first time.
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