Under Lib Dem manifesto plans announced today, young people will be able to buy their own home without needing a deposit.
The Rent to Own scheme will help first-time buyers onto the housing ladder by allowing them to build up a share in their home through renting without the need for a deposit.
This is a revolutionary shift in housing policy that will give young people caught in ‘generation rent’ a chance at home ownership
During the last decade home ownership for those under 35 years has plummeted. The percentage owning a home has gone down from 59% to 36%.
I was able to buy my first flat – or at least get a mortgage on my first flat – when I was 28. I could not do that now as prices and salaries stand.
So the Lib Dems in the next government partnering with housing associations and other providers would launch a Rent to Own scheme.
Rather than being trapped in rental accommodation forever, working young people who are unable to afford a deposit would be able to become home owners.
Rent to Own will see first-time buyers 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. with monthly payments no higher than market rent.
This is forms part of Liberal Democrat plans to deliver 300,000 new homes each year, with the government bridging the gap between private sector building and demand.
It is only fair that working young people also have the dream of home ownership. Prices are so high now that renters cannot afford to even save for a deposit, which means they can never take that first step onto the housing ladder. Young people deserve better. Rent to Own will mean, regardless of their background and family circumstance, they will be able to make this a dream a reality. They will have the same opportunity I had.
This is about building a stronger economy and fairer society, and making sure Generation Rent has the same opportunity to get on in life as their parents and grandparents before them. Roll on the Lib Dems in the next government.