Tenants rising under Rent now Buy later scheme

Posted: 17 Jul 2008 13:19:49 GMT

            Property News - Tenants rising under Rent now Buy later scheme

The number of people becoming tenants could rise significantly under the government's proposed 'Rent first, buy later' scheme.

Housing minister, Caroline Flint, yesterday (July 16th) announced a series of proposals aimed at helping would-be homeowners to get on the first rung of the housing ladder.

Under the scheme, households that own under £60,000 would be able to rent a property for a discounted amount and would be given the option to buy it later.

Responding to the government's proposals Sarah Webb, CIH chief executive, said: "Outright home ownership is a heavy commitment and may not be right for everyone, and we welcome a range of options such as the rent to Homebuy scheme that is proposed today."

Describing the scheme as "good news", Ms Webb warned of the importance of setting criteria for "eligibility".

A report issued last month by buy-to-let mortgage specialists, Paragon, showed that tenant demand is increasing as the housing market slows.

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