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Lib Dems unveil ‘Rent to Own’ housing reform plans

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.”


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Nice idea, but ridiculous approach. The reason young workers can’t save a deposit is because they can barely afford to rent so how are they going to afford “above market” rents? Property owners have got away with paying a tiny amount of tax on rental income and property gains, for decades. They’ve made a fortune and frankly I think the younger generation have every right to feel resentment about their housing woes while the generation above them are sat in a Michelin-starred restaurant discussing their amazing buy-to-let rental yields. Let’s have a tax credit for tenants, perhaps on an age-based sliding scale… plus a whacking big capital gains tax on the sale of a buy-to-let, and a prohibitive Stamp Duty Land Tax on the purchase of investment properties. And while they’re at it, better regulations in the rental market for tenants. Oh, and build lots of affordable new houses at the bottom of the market, please.

  2. Good Mortgage Man 16th March 2015 at 9:39 am

    This is a poorly thought out idea with too may holes in it too mention. They might as well have just said they will extend HTB2 to 100% lending.

    How can you release a statement about a new policy, using the justification that FTB’s can’t afford to save a deposit, because the rent they are paying is too high, and in the same policy explain that your scheme will feature above market rents!?

    Politicians eh?

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