'Buy As You Go’ Housing Plans
The National Housing Federation has approached the Government with a proposal that would allow people who rent houses to have the opportunity to purchase them after 25 years. If they are granted funding they have said they will be able to build 335,000 new homes over the next four years.
Their idea is that people will sign up for a new tenure called ‘buy as you go’. It means that those who wish to buy after renting will not be required to save for a deposit or arrange a mortgage as they will build up equity in their property over time.
Private renters currently spend around 47% of their post-tax salaries on rent which makes it almost impossible for them to save for a deposit.
This matter is something that appears highly on Theresa May’s agenda. She has said that her government are keen to make improvements for people who “work around the clock yet find life a struggle.” New figures have been released show that there is been a sharp dip in homeownership since 2010.
A recent report has shown that the lack of homes that are available to rent have further increased rental prices, for example people who rent properties in London should expect their rent to rise by 25% in the next five years, this rise will be around 19% in other parts of the country.
YouGov carried out a poll last year and concluded that 52% of people who rent privately and earn the living wage (or less) wanted to be able to earn their own homes but did not think they would ever be able to do so.
Head of the Lawson-West Conveyancing Department Sharon Sangha comments: “This scheme is similar to the help to buy scheme but without the deposit or lender! Which would mean people would find it easier to get on to the property ladder.
For Lawson-West it would mean that these types of ‘cash’ purchases open up the market for people to get on the property ladder and encourage them to buy their first home - something that we are experts at doing and something which we aim to help people do by keeping the process simple and easy to understand.
I will keep an eye on this story as it develops and will issue an update once there is some more news. If you would like any information about buying a house please do not hesitate to contact a member of my experienced team on 0116 212 1000.”
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