The Liberal Democrats have unveiled a new campaign pledge to help young working adults rent their own homes with government-backed loans.
People will be able to borrow up to £1,500, or £2,000 in London, to go towards a tenancy deposit in England.
Borrowers need to be between 18 and 30, in paid employment and not be homeowners or seeking social housing tenancy.
Loans will be repayable over 12 or 24 months, and interest will be linked to the cost of government borrowing, currently 2.5 per cent.
Any outstanding debt could be transferred between properties, but tenants will only be eligible for a single loan.
Deposits would be paid directly into a protection scheme once a tenant has identified a property to rent, with tenants beginning repayment on their first month.
Deputy Prime Minister and Lib Dem leader Nick Clegg says: “Increasingly we see young people stuck in the family home as they can’t afford the upfront costs of a deposit to rent a property despite having a paid job.
“It’s simply unfair that thousands of hard-working young people still have to live in the same bedroom they lived in when children.
“When you get your own job, you want to stand on your own two feet, have your own space, and not have to rely on the bank of mum and dad.
“Our Help to Rent scheme removes this barrier to young people’s independence, providing access to up to £2,000 towards their tenancy deposit so they can fly the nest and rent their own space.”
The proposal comes after the Lib Dems announced plans for a Rent to Own scheme, designed to allow first-time buyers to gradually acquire homes by paying above market rates on rent.