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Lib Dems promise homes for young renters

The 'Rent to Own' scheme would enable first-time buyers to build up a share in their home

Andrew Grice
Friday 13 March 2015 17:16 EDT
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Nick Clegg said the scheme was designed for young people, for whom 'the dream of homeownership is increasingly out of reach'
Nick Clegg said the scheme was designed for young people, for whom 'the dream of homeownership is increasingly out of reach' (Getty Images)

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Young people would be able to buy their own home without a deposit under a scheme the Liberal Democrats would propose if they remain in power after the May election.

The “Rent to Own” scheme would enable first-time buyers to build up a share in their home through renting, giving “generation rent” a chance to own. They would build up a share in their home through monthly payments equivalent to a market rent to housing associations, higher than the normal rent for social housing. They would own the property outright after 30 years.

The Government would earmark land and fund housing associations to deliver 30,000 “Rent to Own” homes a year by 2020. Young people could cash in their share of the property at any time, and could use it as a deposit to buy another home.

Unveiling the plan as the party’s spring conference began in Liverpool, Nick Clegg said: “For working young people the dream of homeownership is increasingly out of reach. Prices are so high renters cannot afford to save for a deposit, which means they can never take that first step on to the housing ladder.”

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