Nick Clegg’s Liberal Democrats have launched their new housing policy which will help first-time buyers to get onto the property ladder.
It will be aimed at first-time buyers, who can usually afford monthly mortgage payments, but not the deposit required at the start. They will instead pay monthly instalments, equivalent to market rent prices, which builds up their shares in the property and eventually leads to full ownership after 30 years.
Should they wish to, homeowners are able to sell onto the open market at any time, cashing-in their share to use as a deposit for another house.
“For working 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” said Nick Clegg, Deputy Prime Minister, who announced that 30,000 houses would be delivered as rent-to-own homes if the Lib Dems come into power.
Housing is a significant topic for political parties leading up to the General Election in May. Labour has pledged 200,000 houses each year by 2020, whilst the Conservatives are offering 20% discounts to first-time buyers under the age of 40. UKIP want to utilise brownfield land and protect greenbelt land.
