The Liberal Democrats have launched a new housing policy to help first-time buyers take a share in their home.
The Rent to Own plans will cater for buyers unable to raise a deposit, allowing them to steadily build up a share in their home through monthly payments, eventually owning the property outright after 30 years.
Buying will be back-loaded so occupants earn a higher share the longer they have been in the home. People who use the scheme will have the right to sell their property on the open market at any time, cashing out their share of the home.
The Lib Dems say applicants will need to pay above market rates to take advantage of the scheme. In addition, they will have to be in steady employment, and will face affordability tests and credit checks.
The Lib Dems say they will aim to deliver 30,000 Rent to Own homes in England by 2020. It remains unclear how the policy will be funded, although the party plans to set out more details later this year.
Deputy prime minister Nick Clegg says: “For working young people the dream of home ownership 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 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.”